55% of America's Top Startups Were Founded by Immigrants. Why Won't Congress Let in More?
Without a tenable visa pathway, immigrant entrepreneurs will look to greener pastures—and the American economy will be worse for it.
Immigrants are 80 percent more likely than native-born Americans to found a firm, according to a study released this May by researchers from the Massachusetts Institute of Technology. But more than that, a report released this week by the National Foundation for American Policy (NFAP) indicates that immigrants are disproportionately responsible for starting high-value companies.
According to the NFAP, a nonprofit that researches trade and immigration, immigrants have started 319 of 582, or 55 percent, of America's privately-held startups valued at $1 billion or more. Over two-thirds of the 582 companies "were founded or cofounded by immigrants or the children of immigrants," notes the NFAP. For comparison, approximately 14 percent of America's population is foreign-born.
Together, the immigrant-founded companies are valued at $1.2 trillion and employ 859 people on average. Elon Musk's SpaceX has the largest valuation at $125 billion, employing 12,000 workers; Gopuff, a food delivery service valued at $15 billion, has 15,000 employees; Stripe, a payment platform valued at $95 billion, employs 7,000; and Instacart, a grocery delivery service valued at $39 billion, has 3,000 workers.
These findings are notable, the NFAP points out, since "there is generally no reliable way under U.S. immigration law for foreign nationals to start a business and remain in the country after founding a company." A large share of the immigrant startup founders came to the country as refugees, on family-sponsored green cards, or through employment-based pathways for other companies.
"Our employment-based pathways for immigrant entrepreneurship are so poorly designed, migrant businesses are often associated with non–employment based pathways," points out Sam Peak, an immigration policy analyst at Americans for Prosperity. Peak notes that refugees "have the highest rates of entrepreneurship of any other immigrant group," and family-based migration, "especially among siblings, is also strongly tied to new business formation."
Lawmakers have introduced a number of measures this year meant to bring more entrepreneurial and highly educated immigrants to the United States, but many of these have been included in—and eventually stripped from—larger bills. The House-passed America COMPETES Act contained provisions that would've established nonimmigrant visa programs for "entrepreneurs with an ownership interest in a start-up entity" and "essential employees of a start-up entity," but they didn't make it into the narrower Senate competition bill. More recently, Rep. Zoe Lofgren (D–Calif.) introduced an amendment to the National Defense Authorization Act (NDAA) that would've streamlined green cards for immigrants with doctoral degrees in STEM fields. But it wasn't included in the House-passed NDAA. Prospects for meaningful immigration reform now look slim, especially with the midterms coming up.
Entrepreneurial immigrants, many of whom could contribute to the American economy in huge ways, largely don't have intuitive ways to come to the United States. Lawmakers have been proposing a startup visa since 2009 to no real avail, and though the Biden administration rebooted an International Entrepreneur Parole program, recipients are only allowed to stay in the U.S. for up to five years. (What's more, the immigration and business law firm Scott Legal P.C. reported that the program appeared to be stalled as of April this year.) "Other pathways for highly skilled immigrants," notes the Progressive Policy Institute, "including the O-1, EB-1, and EB-2 visas, rely on a strong record of prior accomplishments and are not a good fit for entrepreneurs whose potential accomplishments lie in the future."
"Although some entrepreneurs can earn permanent residency if the government determines that the business [is] in the national interest, most firms will not meet this particular requirement," says Peak. "By and large, founders of successful businesses are unable to use their enterprise to become permanent residents." Department of Labor regulations also bar "most entrepreneurs from being sponsored through their own business," adding yet another layer of bureaucracy.
Without a pathway to permanent residency or citizenship in the U.S., entrepreneurial people may simply look to migrate elsewhere. Immigrants have to clear much higher barriers than native-born Americans in order to make their entrepreneurial dreams a reality. Experience tells us that they will flourish if given the opportunity—but unless their visa prospects improve, they'll look to greener pastures, and the American economy will be worse for it.
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What is the split between legal and illegal immigrants? A good, honest reporter would include this. Oops, this is the Teenreason/Emote.
Because no one here, or that I even know, is against legal immigration. Even my redneck friends are fine with it.
Issue Magic Papers to ALL of the ILLEGAL sub-humans! Ipso Presto, Hocus Pocus, Abra-Cadabra-CuntfrabulIistically Precociously, the “Papers Please” have been issued to PLEASE all of the troglodytes… These DEEEEP defects of that them thar ILLEGAL sub-humans will have been PAPERED OVER!!! And everything will be Perfect Forever!!! … (Yer welcome!)
Here’s a good read for those who still have an open mind… Cato…
https://www.cato.org/policy-report/januaryfebruary-2019/myths-facts-immigration-policy
https://www.cato.org/blog/crime-along-mexican-border-lower-rest-country
That is simply no true. Are you redneck friends happy to provide greencard to anyone who is legally inside USA for say 10+ years and have not committed any crime of any kind ?
Here is a heritage piece that claims legal immigrants and illegal immigrants are same and claims offering any benefit to “legal immigrants” is an amnesty. For which GOP’s own voters have been hecking Rep. Mayra
As long as legal immigration is heavily restricted with waiting times of maybe two generations, Rs are perfectly fine with it.
Um. What? My friend is an immigration lawyer who specializes in “investor” visas.
That won’t help people who want to start a business with other people’s money but come on.
Sure the premise is dishonest, but it’s still better than a Shikha column.
Investor visas take 4-5 years to process and in some cases government refuses to process the visa after the money is already invested. For Indians and Chinese there is a racial quota too which has waiting period that is upto 25 years,
If illegals were stopped, the number of desirable immigrants, the kind that start businesses, instead of takers and criminals, then more of those immigrants would be let in, legally.
If only fartilized egg smells were properly WORSHITTED, and abortion doctors were KILLED for their SINS, R-E-S-P-E-C-T for human-DNA-life (EXCEPT for the utterly NASTY DNA of already-born ILLEGAL sub-human DNA of course) would vastly INCREASE, and NO ONE would commit murder any more, in the USA! Nor would they ever DREAM of disrespecting THE SACRED LAWS, and blow, in an UN-authorized manner, on cheap plastic flutes, dammit!!!
PS…
To find precise details on what NOT to do, to avoid the flute police, please see http://www.churchofsqrls.com/DONT_DO_THIS/ … This has been a pubic service, courtesy of the Church of SQRLS!
Abortionists should be treated like any other serial killer, Sqrlsy. And if your hate-filled ass wasn’t quite so retarded, you’d realize that the vast majority of abortions are excecuted on people in the fetal stage and not blastocysts.
55% of America’s Top Startups Were Founded by Immigrants. Why Won’t Congress Let in More?
Just reading this headline I get a schizophrenic-I’m-going-to-have-it-both-ways’ type of vibe. Anyone else?
“…I’m-going-to-have-it-both-ways’ type of vibe…”
THAT is what self-righteousness gets ya!
“Team D”… Let’s GROW Government Almighty, to be MORE compassionate with other people’s money!!!!
“Team R”… Let’s GROW Government Almighty, to be MORE compassionate with other people’s wombs!!!!
“Team L”… Let’s SHRINK Government Almighty, to be LESS compassionate with other people’s EVERYTHING!!!
“Team L” gets ignored and shit upon… Because NO ONE will give up on their self-righteous punishment boners!!! (Self-righteous punishment “clitoris” in the infamous case of Perfect One, Mother’s Lament, the cement-headed Wonder Child).
I love how mad I make your crazy ass, you evil, child castrating lunatic.
I’m saddened that You (Perfect One) cannot see Your Perfectly Self-Righteous Punishment Clit! Are You now off to go and “capitally punish” the mass-murdering doctors who remove non-viable But Sacred Fartilized Egg Smells (inside cysts) on Fallopian tubes?
Look everyone knows illiterate day laborers are just one Hone Depot trip away from curing cancer or creating the next financial giant. At least that seems to be Fiona’s worldview.
If we’re talking keeping more post-docs then fine but this is her argument for taking on the world’s ills.
I for one would favor (if either side has to be favored, which I don’t think is true or good either) low-skilled workers over high-skilled workers, because low-skilled workers do NOT agitate for special protections for them!
See https://reason.com/2018/12/09/america-needs-more-dentists and the below comment that I’ve recycled…
“Government: you can’t do dentistry here” … Yes, exactly! And WHY is that? Because dentists have the money and time with which to lobby (and hoot and holler in other ways) for protection of their racket, and limit the competition that they might face. Concentrated benefits and diffuse costs of special interests, as usual.
I notice that my lawn-mower-dude from Stanstanstanistan does NOT lobby for more protection of HIS racket… Which is why I would take this bullshit about wanting more high-skill immigrants and fewer low-skill immigrants, and stand it on its head, exactly inverting it… Reward the people who do NOT lobby to fuck us all over! And then open up our doctor-lawyer-dentist-etc. schools for more admissions and fewer bullshit standards… WHY in the HELL does my dentist need to know about the Krebs Cycle anyway… And let my lawn-mower dude study and practice up, and do my teeth for me!
55% of America’s Top Startups Were Founded by Immigrants. Why Won’t Congress Let in More?
100% of rapists who impregnated 10 yr olds that had to cross state lines to get a medically induced abortion were committed by immigrants, why won’t congress let in more?
That’s different because shut up!
To be clear, both are equally dumb takes. Emphasis on “equally”.
Let’s give MORE power to Oh-So-Well-Educated “Experts” on reproductive medicine… From Idaho, Land of the Worshit of Fallopian-Tube CYSTS, no less… Such ass THIS!!!
And do you want POLITICIANS to decide, instead of moms and their doctors? Speaking of clueless politicians, see https://www.theguardian.com/us-news/2015/feb/23/idaho-republican-anti-abortion-swallow-camera , “Anti-abortion lawmaker gets anatomy lesson – women cannot swallow camera for exam.” (“Pill-cam”). It seems Idaho representative Vito Barbieri wasn’t listening in the third grade, when another student asked the teacher, “If babies come from mommy’s tummy, how come they don’t get digested?” And he’s not done ANY even vaguely serious studying of health matters since then, either! This clearly shows the UTTER medical ignorance of many power-hungry politicians, who would STILL over-regulate medicine, in order to pander to fanatics! Ignorance for the win, over decency, humility, and self-restraint!
Pretty hilarious that this child-mutilating freak who believes in the birth canal fairy is trying to yell “Science!” at us.
What a surprise! Apologist for the Evil One here, defends utterly ignorant, know-nothing politicians, who would VASTLY over-regulate medicine, in order to pander to fanatics!
What an utterly disingenuous, meaningless, bullshit take.
Lemme guess, if 9 white guys hire 1 immigrant to comply with diversity requirements, it’s assumed the 1 immigrant did the same amount of work as 9 white guys and the business gets counted as immigrant-owned. Lemme also guess the inverse, if 9 white guys hire 1 immigrant to comply with diversity requirements, it’s just assumed that 9 white guys couldn’t work as hard as 1 immigrant at founding a business so they don’t get counted.
Do I even have to look to know, *know* that this is the utterly dishonest and shitbag take that Reason/Pro-Immigration morons have taken?
My take was to accept the headline at face value.
If in a country of 330 million people, 55% of startups were founded by immigrants, then it seems our immigration system is working better than anyone imagined.
My take was to accept the headline at face value.
I stopped taking Reason at face value decades ago specifically because of this sort of bullshit. ‘Fiona Harrigan – The Return of Shikha Dalmia’ aside, GIGO. You can’t rightly say our immigration system is working or not when MIT/NFAP goes around effectively saying, “If a corporation has even a single immigrant among it’s shareholders, it’s an immigrant-owned business.”
OK, not quite decades ago… yet.
Sure enough:
Elon Musk’s SpaceX has the largest valuation at $125 billion<
It seems like only yesterday he was a young man from Guatekamala, uneducated, unskilled and illiterate, sneaking across the Rio Grande…
First African American-owned space company.
“Why Won’t Congress Let in More?”
Harrigan would have done better answering this question in her article. It’s in the title after all. She might have mentioned:
Democrat unions don’t want competition from immigrants
Democrats want more government dependent citizens, believing that will tilt the country to D policies and D politicians.
Big businesses want more employees, skilled and unskilled, at lower wages
Social Conservatives worry about the character of the nation with immigrants who don’t support traditional values.
Trump tried to reform immigration, but Pelosi walked out ending the negotiations.
IMHO, the Democrats want the immigration laws just like they are, until the surge impacts their city budgets. She should be more libertarian: let the immigrants fend for themselves, because with freedom comes responsibility. It won’t cost the city anything to support those immigrants, especially if the government gets out of the schooling business, and free medical care for illegals game.
Let Democrats personally contribute to the NGOs helping the immigrants, rather than forcing taxpayers to do it.
Like most conservatives, I’m good with legal immigration especially of highly skilled people who will work and support themselves. I’m not good with illegals or legals who come to live off US taxpayers with the government stealing for them.
Yeah man agreed… I for one would favor (if either side has to be favored, which I don’t think is true or good either) low-skilled workers over high-skilled workers, because low-skilled workers do NOT agitate for special protections for them!
See https://reason.com/2018/12/09/america-needs-more-dentists and the below comment that I’ve recycled…
“Government: you can’t do dentistry here” … Yes, exactly! And WHY is that? Because dentists have the money and time with which to lobby (and hoot and holler in other ways) for protection of their racket, and limit the competition that they might face. Concentrated benefits and diffuse costs of special interests, as usual.
I notice that my lawn-mower-dude from Stanstanstanistan does NOT lobby for more protection of HIS racket… Which is why I would take this bullshit about wanting more high-skill immigrants and fewer low-skill immigrants, and stand it on its head, exactly inverting it… Reward the people who do NOT lobby to fuck us all over! And then open up our doctor-lawyer-dentist-etc. schools for more admissions and fewer bullshit standards… WHY in the HELL does my dentist need to know about the Krebs Cycle anyway… And let my lawn-mower dude study and practice up, and do my teeth for me!
Did anybody bother to ask how much starting wealth those immigrants had?
No?
Let’s not call this immigration then, let’s call it what it is: Buying citizenship.
Let’s not call this immigration then, let’s call it what it is: Buying citizenship.
If you ignore the legal/immigration side, it *could* conceptually fit a notion of hostile takeover. Not saying we should call it that or that that’s what it is but, once again, Reason acts like everyone is retarded and can’t see that some immigrants are more equal than others and not everyone will see (e.g.) “55% of America’s Top Startups were Founded By Russian Oligarchs” or “55% of America’s Top Startups Were Founded By CCP Party Members” as an unbridled good.
We’re letting them in by the millions. Where have you been?
LMAO…. “Over two-thirds of the 582 companies “were founded or cofounded by immigrants or the children of immigrants,” notes the NFAP. For comparison, approximately 14 percent of America’s population is foreign-born.”
Neat trick; using one point in time calculation and comparing it to decades of “immigrants and the children”…. “childen”…. “of the”…. “children”…… I wonder how many years they go back for that analysis.. Heck; If one were to take the children of the children from the Mayflower day I’ll bet it’s closer to 100%….
And that’s how propaganda is made.
The MIT paper is just an abject mess. They take non-standardized data from three separate sources (which use three different collection methodologies) from sorta/maybe overlapping time periods (and totally not-cherrypicked!) and then ran three distinct analyses on it and get the same overall trend.
They may as well have just given each other Rorschach Tests where they all answered “native-owned business” or “immigrant-owned business” and published the results.
https://www.zerohedge.com/political/tipping-point-dc-mayor-calls-national-guard-indefinitely-help-process-undocumented
With busloads of migrants arriving from Texas to the nation’s capital, DC has reportedly reached a “tipping point” after just 4,000 of them, causing Mayor Muriel Bowser to request that the DC National Guard be activated “indefinitely” to help with the situation, NBC4’s Mark Segraves reports.
No, no, if this were true, Reason and Fiona Harrigan would have retracted her piece from June 23rd indicating that Abbot’s busing of migrants was a failed stunt and DC was happy to have them.
The author fails to note that the immigrants that are starting those businesses are mostly from Europe and Asia. Mexico, South America and Africa, not so much.
So, no, this isn’t an argument for a blank check for immigration. It’s an argument for very selective immigration.
Frankly it does not matter. Steve Jobs was one of the greatest business founder of modern times and was not an immigrant, but he was a child of completely ordinary immigrants. Milton Friedman one of the greatest economist of last 100 years was not an immigrant but a child of completely ordinary immigrant parents.
The problem with US immigration is not that it does not treat immigrants as well as they treat this country, but rather it is a complete clusterfuKK of gigantic red tape, virtue signaling, government inefficiency and sometimes outright cruelty.
Both parties benefit immensely from status quo as the GOP can call any changes to existing immigration system (including changes to form formats) an amnesty. Where as Democrats try to propose unpassable bills while raising money from gullible voters.
The immigration leader of Democratic party is Senator Dick Durbin, who has proposed and passed exactly ZERO bills in his entire career of three decades but blew up deliberately two excellent immigration deals under Bush and Trump over trivial terminology.
GOP which claims to be against anti-immigrant has proposes exactly ZERO bills, not even drafts as to what changes they would like to see in the current system.
Steve Jobs was a narcissist and a ruthless psychopath whose company was based on stealing other people’s ideas. Of course, within those parameters, he was a brilliant man.
Needless to say, these “immigrant startup founders” are a TINY fraction of a immigration population that number in the millions. And this study puts a startup as “founded by immigrant” column if only of the founders is an immigrant. America is effectively the largest market and you can sell things like Boba drinks or some Mexican brand at rate not possible in other countries. Lots of these immigrant were likely rich to begin with or had capital flowing in from home.
This is the kind of sleigh or hand trickery used by the left to inflate the value of their pet projects, like the college degree. We all know college degree won’t get you a 50 thousand annual paycheck. We all know most immigrants are not the next Steve Jobs and will be dependent on government support. I have no idea why writers here suddenly reason like leftists when it comes to immigration.
The more discernible downside to massive immigration is readily apparent in states like CA. In reality, Justin Trudeau won’t let in 30 million foreigners into the vast emptiness of Canada thinking “We can be just like CA with more immigration!” That would destroy that country. In Canada, most immigrants are Asians.
“Without a pathway to permanent residency or citizenship in the U.S., entrepreneurial people may simply look to migrate elsewhere.”
There is a pathway. Everyone one of those entrepreneurs took it. We let in 1 million LEGAL immigrants every year. How many more do you want?
Because there’s a difference between those capable of that level of entrepreneurship, who are welcome and have legal means to come into the country, and illegals and a 5th Column of mostly Moslems who are counting on overwhelming America with numbers as they’re doing in Eurabia…
Let’s see how many immigrants create start up businesses in DC where the National Guard is being called up to control them.
Seems like that’s a pretty good % already…but,
There’s are reasons that both the dems and republicans don’t deal with the holes that are in our immigration system and don’t deal with the border.
The left believes that a permanent underclass is to their benefit and so many poor “immigrants” flooding over the border is to their benefit. This is turning out to be less true than they had hoped, but they don’t want to admit it.
The Chamber of Commerce Republicans wants cheap labor. Many poor and poorly educated flooding the border works for them.
Those educated and motivated immigrants who come legally don’t owe either side allegiance and so are of no value. If they manage to navigate the system and get it, that’s OK, but no one is going to make it any easier for them.
Seems to me that the unasked question is- why aren’t Americans starting businesses as much as we used to?
This problem is much bigger than the usual bullshit about immigration
“why aren’t Americans starting businesses”
Because it’s easy to live a comfortable life without exerting that much effort.
Reason’s staff just wants cheaper drugs, and it assumes it will get them if there are more, um, “immigrants” being let through.
And what, exactly, are these oh-so-valuable startups? How many Kwik-E-Marts do we need, Fiona? And I note that you say “startups” instead of “successful companies.” Why do we need more failed businesses?