Immigrant Entrepreneurs Boost Northeast Minnesota Economy Amid Population Decline

Key Takeaways

• Immigrants comprised 94% of Minnesota’s population growth from 2020-2024, crucially sustaining Northeast Minnesota amid demographic and economic challenges.
• From 2019-2023, foreign-born workers contributed nearly 60% of Minnesota’s labor and job growth, benefiting key industries like healthcare and manufacturing.
• Immigrant entrepreneurship increased from 3.4% in 2014 to 5.5% in 2022, revitalizing struggling towns but still facing potential gaps.

Immigration is proving to be a vital factor in keeping Northeast Minnesota 🇺🇸 economically stable and growing. This part of the state, like much of Minnesota 🇺🇸 as a whole, has been facing challenges linked to an aging population and workforce shortages. Immigrant entrepreneurs and workers are becoming a key part of the solution to these ongoing problems, bringing new energy and fresh ideas to local businesses and communities.

From 2020 to 2024, immigrants accounted for 94% of Minnesota’s total population growth, according to the Minnesota Chamber Foundation’s 2025 report. This trend has been especially noticeable in Northeast Minnesota, where more people are now passing away than being born in many counties. Between 2020 and 2023, 51 of Minnesota’s 87 counties experienced this demographic challenge, highlighting an urgent need for both domestic and international migration to maintain population levels. Immigration is not just replacing numbers; it is helping to shape the future of the region’s economy.

Immigrant Entrepreneurs Boost Northeast Minnesota Economy Amid Population Decline

The impact of immigrant workers is undeniable. From 2019 to 2023, almost 60% of the state’s overall labor force and job growth came from foreign-born individuals. This growing group of workers stepped in at a critical moment, particularly as businesses struggled to recover from the disruptions caused by the COVID-19 pandemic. Industries like agriculture, health care, and manufacturing in Minnesota, including those in the Northeast, have benefited immensely from these contributions. Immigrants are not simply filling roles—they are underpinning the state’s economic resilience.

Adding to this narrative is the impressive growth of immigrant-owned small businesses. According to data from the Minnesota Chamber Foundation, the percentage of self-employed immigrants in the state rose from 3.4% in 2014 to 5.5% in 2022. While immigrant entrepreneurship has grown, it remains an area where Minnesota has room to improve. The state ranks 23rd in the U.S. for its foreign-born population size but only 44th in the percentage of immigrant-owned businesses. This gap shows that while progress has been made, there is an untapped potential for immigrant entrepreneurs, particularly in regions like Northeast Minnesota.

Entrepreneurs arriving from different parts of the world bring with them diverse life experiences, specialized skills, and often a drive to succeed against the odds. Many immigrants come with personal networks that extend across borders, enabling them to explore unique business opportunities that add value to small and large towns alike. This entrepreneurial energy can especially be seen in some of Northeast Minnesota’s smaller towns, where immigrant-owned businesses are breathing life into communities struggling with economic stagnation. Take Long Prairie as an example—a community where businesses owned by Hispanic immigrants have revived once-empty storefronts. These businesses are more than just economic contributors; they are hubs of community life that bring cultural vibrancy.

The success of immigrant entrepreneurship also comes down to community and local support systems. The Minnesota Chamber and other organizations have made efforts to help immigrant entrepreneurs succeed by offering services like business mentoring, financial assistance tailored to unique needs, and language support to reduce barriers. At the University of Minnesota Extension, research has been conducted on immigrant entrepreneurship in Northwest Minnesota. Such regional studies provide valuable lessons that Northeast Minnesota may draw upon to design targeted support systems.

However, challenges exist. Statewide, the rate of entrepreneurship among immigrants remains slightly lower than that of native-born Minnesotans, at 5.8% compared to 10.2%. This runs contrary to broader U.S. trends, where immigrants are generally more likely to start businesses. Factors that could explain this include younger immigrant demographics in the state. According to Minnesota State Demographer Susan Brower, many immigrant communities have a median age much lower than Minnesota’s overall average. This means that a larger share of immigrants in Minnesota may not yet have reached the typical age where people become more likely to start their own businesses.

Despite these challenges, the growing focus on developing immigrant entrepreneurship is bringing about change. A relevant example is the purchase of the Shingle Creek Center strip mall in Brooklyn Center by the Ignite Business Women Investment Group and ACER (African Career, Education and Resources). Valued at $5.2 million, this 2023 initiative arose from the growing contributions of African immigrant entrepreneurs in the Twin Cities suburbs. The collaborative investment serves as a model that other parts of the state, like Northeast Minnesota, could emulate. By following such examples, the region could encourage more immigrant investment and, in turn, strengthen its local economy.

As attention grows in supporting immigrant entrepreneurs, policymakers in Northeast Minnesota are focusing on strategies that include providing better access to loans and grants, adding more culturally specific business training, and fostering opportunities to build business networks. Addressing these needs will be key to making the area more attractive for entrepreneurs from diverse backgrounds. Such efforts acknowledge the long-term benefits immigrant entrepreneurs bring not just for those starting businesses, but also for the broader communities they operate in.

Already, immigrant businesses are helping to generate job opportunities, expand consumer options, and create vibrant spaces in towns and cities struggling with population loss. These growing businesses contribute to taxes that fund local improvements like schools, infrastructure, and social programs. Further financial backing and communal support could unlock higher levels of success and open opportunities for collaboration between immigrant-owned and locally established businesses.

It is worth noting that Northeast Minnesota is not isolated in this regard. The prevalence of immigrant entrepreneurship aligns with a broader national story of immigrants fueling small business growth in areas with economic challenges. State and national immigration policies hold considerable sway over the outcomes of these efforts. Supportive pathways for business visas, reduced administrative barriers, and inclusive community policies can make all the difference. Policymakers and local organizations play a crucial role in determining how quickly immigrant entrepreneurship can achieve its full potential.

Through collaborative efforts with organizations like the Minnesota Chamber and by learning from projects such as Brooklyn Center’s Shingle Creek Center, the goal of expanding immigrant entrepreneurship throughout Northeast Minnesota seems within reach. Future gains will rely on a shared commitment to addressing gaps and offering actionable support for entrepreneurial ventures.

In conclusion, immigrant entrepreneurs hold the potential to play an essential role in Northeast Minnesota’s future. They answer critical needs, providing innovations, creativity, and hard work to areas that face both demographic and economic barriers. By sustaining population levels and creating jobs, they are revitalizing towns that might otherwise struggle to remain viable. With targeted support policies and a recognition of the contributions immigrants make—both economically and socially—Northeast Minnesota has the chance to keep growing toward a brighter, stronger future. As reported by VisaVerge.com, immigration’s impact on local economies is profound, and its full potential depends on continuing collaborative and committed efforts. For more detailed information on immigration-related policies and forms, visit the official U.S. Citizenship and Immigration Services (USCIS) page here.

Learn Today

Immigrant Entrepreneurship → The act of immigrants starting and running businesses in their new country, contributing to local economies and communities.
Demographic Challenge → Issues arising from shifts in population trends, like aging populations and declining birth rates, impacting economic stability.
Labor Force → The group of people available to work, including both employed and unemployed individuals actively seeking jobs.
Business Mentoring → Guidance provided by experienced business professionals to help entrepreneurs develop skills and overcome challenges.
Community Support Systems → Local resources and networks that assist individuals or businesses, including financial aid, training, and cultural integration programs.

This Article in a Nutshell

Immigrants are revitalizing Northeast Minnesota’s economy amid workforce shortages and an aging population. Contributing 94% to Minnesota’s population growth since 2020, they fuel industries, launch businesses, and foster cultural vibrancy. By supporting immigrant entrepreneurship with financial resources and training, the region can unlock immense potential, ensuring future economic stability and thriving communities.
— By VisaVerge.com