Countries around the world are attracting innovators and entrepreneurs with pro-startup immigration policies, and Congress is beginning to take notice. This week, the House Judiciary Committee held a hearing on international talent loss to U.S. competitors, including Canada. Though the U.S. is a target destination for immigrant entrepreneurs looking to launch startups, other nations with more favorable immigration policies — including startup visas and considerable investments in entrepreneurial infrastructure and R&D — are quickly becoming hotspots for international talent. If we are to remain competitive and at the forefront of innovation, it is essential that policymakers reform immigration law so entrepreneurs can have access to the opportunities and talent they need to launch and grow their businesses in the U.S. instead.
Immigrant entrepreneurs are critical to the U.S. economy, particularly at a time when job growth and economic recovery are sorely needed. Immigrants stand out as skilled business owners in the U.S. In 2019, over 20% of all businesses were owned by immigrant entrepreneurs (despite only making up just under 14% of the population). These businesses also make significant contributions to the job market and economy. More than half of all unicorn startups have at least one immigrant founder, and a combined value of almost $250 billion. These billion dollar plus startups are also individually responsible for creating more than 1,200 jobs.
But despite the clear benefits immigrant founders impart on the U.S., current, outdated immigration laws create difficulties for would-be founders to come to the U.S. and launch their companies. While certain visas — like the H-1B visa — allow for high-skilled talent to work, these visas are in short supply and generally do not permit a worker to simultaneously start a company. And though the Biden administration has announced it will fully implement the International Entrepreneur Rule, which gives temporary parole to qualifying international founders, the status is not permanent, nor does it offer a pathway to citizenship.
It is crucial policymakers implement a new category of visa for startup founders. As Nicky Goulimis — co-founder of Nova Credit, a startup cross-border credit reporting company that allows immigrants to easily transfer their international credit histories to the United States — explained, “[w]e hear stories from immigrants we work with who are stuck abroad in this weird limbo, waiting to see if they’ll have the option or ability to come to the U.S. Some of them are actually starting to look at other countries, like Canada and Australia, which are able to attract some of this talent away from the U.S. That uncertainty can have a very real impact on the lives of immigrants.” And it can have a very real impact on the U.S. innovation ecosystem as well.
Ultimately, policymakers aren’t doing enough. In neglecting to implement meaningful immigration reform, including a startup visa, policymakers are telling the world that the U.S. isn’t a hub for innovation. Instead of forcing founders to look to other countries to place their talents and found their innovative companies, policymakers must make the U.S. a home for immigrant founders with scalable, prosperous, new businesses. Our competitiveness in the innovation ecosystem depends upon it.
