USA Green Card Immigration Blog

Letters to the Editor: Smart Immigrants Yes, but H1-Bs Are No Panacea – WSJ.com.

Paul Kedrosky and Brad Feld assert that we should make it easy for immigrants to move here in order to create start-ups by stapling green cards to the degrees of foreign students and easing H1-B restrictions (“Start-up Visas Can Jump-Start the Economy,” Dec. 2). In support of their argument that immigrants are entrepreneurial, they list several start-ups founded by immigrants, including Google, Pfizer, Intel, Yahoo, DuPont, eBay, and Procter & Gamble. However, a closer look at these examples proves very enlightening. Three of these immigrant-founded start-ups were created in the 19th century. Andy Grove of Intel, a Hungarian immigrant, was not the founder of Intel. That honor goes to two Americans, Gordon Moore and Robert Noyce. Mr. Grove originally joined the company as an employee. Of the remaining companies, all of their founders immigrated to the U.S. with their families as young children. Google’s co-founder (with an American) Sergey Brin left Moscow with his family at age 6; Yahoo co-founder (with an American) Jerry Yang left Taiwan at age 8; eBay’s founder, Pierre Omidyar, emigrated from France at age 6.

Note that none of these immigrants was on an H1-B or even a student visa. Essentially, the “immigrant” entrepreneurs whom the authors so admire were raised as Americans and were co-founders of businesses with Americans.

Mara Alexander

Alexandria, Va.

Messrs. Kedrosky and Feld’s appeal to allow would-be immigrant entrepreneurs and technical grads to enrich our economy with fast-track visas is spot on. I would add that we should also allow investors, holders of advanced degrees, and in-demand skilled professionals, regardless of their country of origin, to be fast-tracked also. They are most likely to enrich our country. We allow special consideration for compassionate reasons such as family reunification and amnesty from abusive regimes, even though they may be net revenue drains on our economy via social services, schools and prisons. Why not allow in those immigrants w

ho will create jobs through investment, innovation and valuable education or technical skills which they’ve acquired by becoming successful and who want to take a chance on us?

Debra Janssen-Martinez

Los Gatos, Calif.

Paul Kedrosky and Brad Feld: Start-up Visas Can Jump-Start the Economy – WSJ.com.

While fast-growing companies have long been the main source of new jobs and innovation, this country makes it outrageously difficult for immigrants to launch new companies here. This doesn’t make any sense. After all, Google, Pfizer, Intel, Yahoo, DuPont, eBay and Procter & Gamble are all former start-ups founded by immigrants. Where would this country be today without their world-changing innovations?

Immigrants have not only founded big, well-known companies. Foreign-born residents made up just 12.5% of the U.S. population in 2008. But nearly 40% of technology company founders and 52% of founders of companies in Silicon Valley.

Yet we don’t seem to care. We send recent, foreign-born university science and engineering graduates back to their own countries after their student visas expire—unless these creative sorts are willing to spend some of the most entrepreneurial years of their lives working in a big company under an H-1B visa after they finish their studies.

For those who studied elsewhere, but who nonetheless want to bring their job-creating ideas here, American policies treat them—the job-creating, trouble-making innovators that they are—as a cross between deadbeats and queue-jumpers. Why can’t they wait in line like everyone else to get a visa in five years or so? What’s their hurry?

Their hurry is Joseph Schumpeter’s hurry: They want to hustle out and disrupt markets when the opportunity arises.

In the 21st century those opportunities don’t wait for our interminable, employment-based visa programs. As a result rather than saying “Come and create jobs here” we, in effect, tell them to shove off. Come back when you have a few million in sales— at which point they will be rooted elsewhere and creating jobs somewhere else.

That needs to end now. Immigrants who come here to create companies create jobs. We need the jobs.

One good idea to make this process easier is to create a new visa for entrepreneurs, something that is increasingly being called by venture capitalists, entrepreneurs, and angel investors a “start-up visa.” It might work like this: If immigrant entrepreneurs want to start a company in the U.S. and are able to raise a moderate amount of money (perhaps as little as $125,000) from an accredited U.S.-based venture capital firm or qualified U.S.-based angel investors, we should let them start a company here. It could be a couple of founders with an idea—that’s it. We would give visas to the founders and welcome them in to our country.

Would it work every time? Of course not. It would fail more often than not. Start-ups often fail.

But having failed, the immigrant entrepreneurs could try again, and again. And as long as they are trying, raising money, creating jobs, and making sales, we would let them stay here. Founders of new companies are precious for a vibrant economy, and we should welcome them. Indeed, the country would be better served to find more of them.

Some will say a start-up visa program will be abused. They will say that it will become a way to end-run immigration rules, to jump the queue if you have money.

There are at least two answers to these objections. First, to get such a visa you would have to raise money from real investors. Second, Canada and other countries already allow entrepreneurs to start a company in their country. Shouldn’t the U.S. stop worrying so much about keeping these people out, and start worrying about bringing them in?

We also think science and engineering graduates should get visas stapled to their diplomas. You complete your higher education here, you get to stay so that you can get out and create jobs, innovate, and grow the economy. Uncle Sam wants you, if you’re a prospective entrepreneur.

The U.S. remains one of the most attractive countries for entrepreneurs. It has a culture of risk taking, capital formation, and an economic dynamism that is the envy of the world. This gives us a competitive edge that we should not let slip through our fingers.