Entrepreneurship isakey driving force in the US economy and immigrants account for a large section of its development.In fact, 40% of this year’sFortune500 companies, were led by CEOs who were either first generation immigrants themselves or were the children of immigrants. Immigrant-owned businesses employ 1 in 10 Americans in the private sector and paid around $126 Billion+ in wages every year.
Earlier this year, Harvard Business Schoolpublished results of a 15 year study which investigated the relationshipbetween entrepreneurship and U.S. immigration by garnering immigration data over across various industries. Some of the researchkey findings include:
#1) More than 31% of VC backed start-ups have at least 1 immigrant as a founder or co-founder. The phenomenon of “up or out” is key in immigrant founders, who tend to grow faster than natives and create more job opportunities for US citizens. What’s attributed to their ability to grow faster, is the resilience of immigrant founders and their risk-appetite. These key abilities allow immigrant founders to make keen observations in the industry and grow when the timing is right.
#2) While less than 15% of the US workforce consisted of immigrant workers, they accounted for over 25% of all US entrepreneurs. This is also comparable to Harvard’s previous findings that 25% of all patents filed in the US are from immigrant inventors. What’s even more interesting, is that if we look at new start-ups that had atleast one immigrant co-founder, the number of immigrant entrepreneurs rose to almost 37%. The trend is clear. Immigrant entrepreneurs are creating jobs, adding value and contributing to the US economy.
The reality is that the contributions made by immigrants to new business formation, entrepreneurship and economic growth are undeniable and a key factor in the vibrancy of the U.S. economy. A core factor contributing to entrepreneurs entering the US, is the EB-5 Visa Process. Administered by the United States Citizenship and Immigration Services (USCIS), the EB-5 program’s objective is to attract foreign investmentinto the country. At LCR Capital, we pride ourselves in being a premier partner for your journey to obtaining permanent US residency via the EB-5 program. As a firm founded by first-generation US immigrants, LCR Capital is committed to enabling a successful US transition for all its esteemed clients.