Study Finds Half of New Business Start-ups in the U.S. are Initiated by New Immigrants
The National Foundation report, conducted by VentureSource, examined the role immigrants play in new business start-ups. The study considered companies that were valued at less than $1 billion and that had received venture capital within the past three years. The study was supported by a grant provided by the Ewing Marion Kauffman Foundations. The results of the study indicated that nearly half of America's business start-ups have a founder who was foreign-born. It also found that 37 percent of American start-ups have at least one immigrant in a key role, such as a major management position.
The study found that the majority of immigrants who initiated new start-ups in the U.S. were from Canada, New-Zealand, Iran, India, and Israel. Those businesses employed around 150 people on average. Etsy Inc. of Brooklyn, N.Y., is one example of a U.S.-based start-up that was initiated by immigrants. Etsy was launched by a Swiss immigrant in 2005 and has created employment for 185 people.
This new report confirms the findings that NVCA made five years ago and perhaps makes it even more imperative that the US put out the “Welcome” mat for these entrepreneurs who help create jobs and drive our economy.
Emily Baker, Vice President, Federal Policy and Political Advocacy at NVCA
Congress is currently trying to broaden the scope of visas offered to include more foreign students in the area of science, engineering, technology and math, to further encourage new business start-ups in the U.S. A.