Sanctuary City Policies Undercut Immigrant Entrepreneurs

Immigrants arrive in the U.S. with a high rate of business formation. The cities that draw the largest numbers of them, sanctuary jurisdictions, are often run by governments hostile to private enterprise. The result is a drag on new startups, the Mises Institute argues.

The analysis points to data showing immigrant-founded startups cluster in cities with lighter regulatory burdens. In sanctuary cities, heavy regulation and high taxes slow the pace of new venture creation.

The downstream effects are concrete. Fewer jobs and a narrower tax base follow when startups slow. Local economic momentum weakens. The hit to commercial real estate demand and small-business lending is direct.

The Mises Institute argues that immigration policy alone does not determine immigrant success. The local regulatory environment shapes the outcome. Attracting immigrants is one thing. Letting them build businesses is another.