The U.S. is a hotbed of multi-culture. Political change aside over the past few years, immigrant entrepreneurship has made significant changes to the broader economy. However, it seems that entrepreneurs are taking to U.S. shores from abroad in fewer and fewer numbers. So why are immigrant startups apparently in decline?
The U.S. and The Immigrant Entrepreneur
It is worth noting that immigrant entrepreneurs have long helped to support the US economy. As of 2019, around 3.2 million entrepreneurs in the US could be considered immigrants. Couple this with immigrant business sales revenues a few years earlier - $1.3 trillion. It's clear to see there is incredible worth in maintaining the immigrant connection.
Statistics also show that immigrants in the US - over American-born citizens - are more likely to be founders of startups. Could this be because U.S. businesspeople already have home-grown resources?
Regardless of the hows and whys, immigrant business founding grew rapidly between 1996 and 2011. However, that now seems to be in a decline. Of course, it's not in complete free-fall, but there seem to be growing trends moving away from the states.
Why Are Immigrant Business People Looking Elsewhere?
It is easy to blame the shift on political change. However, entrepreneurs have long since requested a specialist visa to help support their settling and growth on U.S. shores. Unfortunately, at the time of writing, no such visa exists. This problem arises as the states continue to juggle a fairly complex border system. That, at least, could explain the lack of any founder or new business visa.
Ultimately, this style of working permit and pass allows territories such as Singapore to expand. Investments and company founding across other territories such as the United Kingdom and Canada are surging, too. Arguably, these territories have different border policies and processes. Therefore, it may not be too easy to apply the same connotations to the U.S.
However, help may be on the horizon. President Biden is reportedly digging deep into an Obama-era policy that may support immigrant founders finding new bases in America. Obama famously promised $250,000 funding to successful applicants without the need for visas. However, as Amy Feldman states, this appears to be a temporary measure.
The U.S. relies on immigrant innovation. What's more, there is no shortage of immigrant founders' interest in America! With states such as California and NY continuing to grow massive bases for ventures, it's easy to see the appeal.
However, the U.S. needs them, too. Economic growth anchors in innovation. With so many incredible new ideas flooding in from overseas, it will be interesting to see what happens next.
Will Immigrant Startups Head Back to the US?
There's nothing to say that immigrant businesspeople won't ever head back to the US again. As mentioned, there's been immense growth in some venture hotbeds across America.
We will have to wait and see what the long-term effect is of immigrant startups leaving the US. In the meantime, interested investors and third parties may find who they are looking for through databases such as Fundz.
SOURCES
https://www.newamericaneconomy.org/issues/entrepreneurship/
Topic: Startups
