The fate of up to 800,000 individuals and their ability to live and work in the United States will be decided in the coming months, as the Supreme Court heard oral arguments on Tuesday for the consolidated cases challenging the Trump Administration’s termination of the Deferred Action for Childhood Arrivals (DACA) program. While the justices appeared split in their questioning, the outcome of this case will not just have ramifications for the recipients and their communities, but also stands to impact the desirability of the United States as a destination for high-skilled workers to put their skills and entrepreneurial initiative to the test.
The startup community is paying close attention to the outcome of this case, as immigrant contributions to the U.S. economy, and the tech sector in particular, are tangible and valued. Several studies have shown that immigrants are more likely to launch businesses than American citizens and that immigrant contributions to the entrepreneurial community, through either startup formation or employed talent, help to spur innovation and economic growth across the country. Five percent of DACA recipients under the age of 25 have started businesses of their own, as well as eight percent of recipients over the age of 25. This rate exceeds that of U.S. citizens launching their own ventures. One study found that immigrants were responsible for founding over 50 percent of the startups worth over $1 billion.Simply put, if the Supreme Court ends DACA with no Congressional solution in sight, America will lose out on growth, innovation and opportunity.
Repealing DACA and forcing recipients to return to countries they may not even remember stands to disadvantage the startup community in measurable ways—including a further reduction in access to talent and diminished startup formation. Highly-skilled immigrants come to the United States because of our country’s innate ability to launch globally successful businesses. Foreign workers in particular, make significant contributions to the U.S. economy, with some reports showing that every highly-skilled immigrant creates 5 to 7 1/2 new domestic jobs. As market concentration increases across various industries, it’s the unique perspectives and skills that immigrants possess that allow them to spur further small business growth.
Access to qualified talent sits at the forefront of startup needs in order for a successful venture to thrive. Rolling back the status of people who arrived in this country as young children will not only cripple the faith those individuals put in the United States when they were urged to come out of the shadows for a chance to contribute to the country they call home, but will also send the message that the U.S. is not a hospitable destination for skilled immigrants who are fundamental to the success of the tech sector and the continued growth of the U.S. economy.
