Tuesday, April 03, 2007

U.S., Immigrants == Future Entrepreneurs

A new study found that one in four technology and engineering companies founded in the U.S. between 1995 and 2005 had at least one founder who was foreign-born. Many of them were from India and China. Nationwide, immigrant-founded companies generated $52 billion in sales in 2005 and employed 450,000 people. Non-citizen immigrants living in the U.S. also are increasingly being named as inventors or co-inventors on patents.

Research shows that immigrants have become a significant driving force in the creation of new businesses and intellectual property in the U.S. -- and that their contributions have increased over the past decade.

If anyone thinking that U.S. is losing its edge due to immigrants this was proved wrong by study. Infact, advantages the U.S. has, is something unique to be able to bring in the world's best and brightest.

The study also found that:

* Indians were the most dominant ethnic group, heading up 26% of the companies that were founded by immigrants.

* California led the way with immigrant entrepreneurs. There, 39% of tech companies were immigrant-founded. New Jersey was close behind, with 38%, and Georgia and Massachusetts also had a healthy number of tech companies founded by immigrants. Immigrant-founded companies were much less common in Washington, North Carolina and Texas.

* Chinese (either mainland or born in Taiwan) were most likely to set up their companies in California. Nearly half of the companies founded by mainland Chinese and 81% of companies headed by Taiwan-born immigrants were in California. Indian-founded companies were well represented in both California and New Jersey, while British entrepreneurs favored California and Georgia.

* The immigrant mix differed from state to state. In Florida, 35% of immigrant-founded companies were started by people from Cuba, Columbia, Brazil, Venezuela or Guatemala. In Massachusetts, Israelis were the biggest founding group, accounting for 17% of immigrant-founded startups. In New Jersey, Indians headed 47% of the new companies started by immigrants. The researchers suggested that the ethnic clustering of start-up companies reflected the tendency of immigrants to form social and business networks.

* Immigrants were most likely to start companies in the semiconductor, computer, communications and software fields. They were least likely to start companies in defense/aerospace and environmental industries.

* While immigrants are making their mark all over the country, Silicon Valley remains a hotbed of entrepreneurship. Just over 52% of start-up companies there had immigrant founders, with the highest proportion from India, followed by China and Taiwan. By comparison, just under 19% of startups in Research Triangle Park, N.C., another high-tech center in the country, had an immigrant founder.

Immigrant entrepreneurs may be especially attractive to investors since they bring certain advantages to the business equation, For instance, there may be a chance for enhanced revenues because the immigrant's ties to the homeland afford a "pathway to lucrative, larger markets." On the cost side, the immigrant may have access to lower-cost workers, supplies and manufacturing facilities in the home country.

I hope U.S. government will take these fact has input and reflect in Immigration Policies accordingly.

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