Why Immigrant Entrepreneurship Is Stalling in the USA
For the first time in decades, the rate of skilled immigrants starting businesses in high-tech industries in the U.S. has plateaued, according to a new report released by the Kauffman Foundation.
The study, based on responses from 1,882 startups founded after 2005, shows that the proportion of those ventures founded by immigrants nationwide slipped from 25.3 percent in 2006 to 24.3 percent today. In Silicon Valley, it declined from 52.4 percent to 43.9 percent during the same period. Kauffman extrapolates that tech firms with immigrant founders employed about 560,000 workers and generated an estimated $63 billion in sales from 2006 to 2012.
Native-born entrepreneurs aren’t making up the difference. Their startup rate has remained relatively flat over the last 16 years, and declined in 2011, according to Kauffman’s most recent index that tracked new business creation from 1996 to 2011.