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A quarter of US tech start-ups founded by immigrants: study

Findings could fuel calls to relax immigration rules ahead of next month’s US presidential elections
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First Published: Wed, Oct 03 2012. 08 31 AM IST
The study shows that 24.3% of engineering and technology start-up companies in the US have at least one immigrant founder serving in a key role. Photo: Brendan McDermid/Reuters
The study shows that 24.3% of engineering and technology start-up companies in the US have at least one immigrant founder serving in a key role. Photo: Brendan McDermid/Reuters
Updated: Wed, Oct 03 2012. 12 18 PM IST
San Francisco: A new study showing that immigrants founded one quarter of US technology start-up companies could fuel calls to relax immigration rules ahead of next month’s US presidential elections, where the economy and immigration are key issues.
The study “America’s New Immigrant Entrepreneurs: Then and Now,” shows that 24.3% of engineering and technology start-up companies have at least one immigrant founder serving in a key role. Indian-born entrepreneurs, representing 33% of the companies, dominated the group.
The study paid particular attention to Silicon Valley, where it analysed 335 engineering and technology start-ups. It found 43.9% were founded by at least one immigrant.
“High-skilled immigrants will remain a critical asset for maintaining US competitiveness in the global economy,” wrote the authors of the study, sponsored by the Kauffman Foundation, a non-profit organization that promotes entrepreneurship.
One of the authors, Singularity University’s Vivek Wadhwa, called for a visa designed for entrepreneurs.
“If we had a start-up visa, we would have tens of thousands of new start-ups nationwide,” he said via email.
In recent years, the number of start-ups overall in Silicon Valley has mushroomed, as entrepreneurs have found it easier to access “seed” or early capital.
Those opposed to relaxing immigration rules, including many unions, argue that immigrants displace higher-paid US workers in key technology professions such as software engineering.
And while many lawmakers support allowing more immigrant entrepreneurs into the country, powerful Washington lobbies do not want to relax rules for one group without addressing the broader issue of illegal immigration.
Immigration is a flashpoint among Hispanic voters, a key voting block that both US President Barack Obama and his Republican rival Mitt Romney are courting.
President Obama recently told TV network Univision he considers the lack of comprehensive immigration reform his “biggest failure” during his first term in office.
Romney has promised to put in place an immigration reform system and has said he believes the Republican party is the “rightful home” of Hispanic voters.
Some 40 million people living in the US, or 13% of the population, were born overseas, according to the US Census Bureau. Reuters
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First Published: Wed, Oct 03 2012. 08 31 AM IST
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