The Biggest Job Creators
They discovered companies less than a year old create 3 million American jobs per year.
However, The Kauffman Foundation also found older firms actually destroy jobs.
Given the above statement, we have to wonder why job seekers flock to large, more established employers, when they dont seem to offer what smaller, younger counterparts do. But it begs another question; who are many of the people behind these young companies creating 3 million jobs per year? You may be surprised.
Encouraging Job Creators
Senators John Kerry (D-Mass.) and Richard Lugar (R-Ind.) earlier this year introduced a start-up visa bill that grants temporary visas to immigrant entrepreneurs who receive at least $250K in financing from an American investor or venture capitalist and hire at least one non-family member. The problem? Not many immigrants can get the $250K.
This bill is on the right track though. In Forbes magazine, Robert E. Litan proposes a job creators visa. Basically, immigrant entrepreneurs get a one year visa which enables them to get a business started and to search for employees. They are to hire at least one non-family member (American citizen) then may stay for 5 years. If they hire more than ten U.S. citizens, they get their green card. It sounds like a win-win situation; one that gives immigrants the incentive to grow their business while employing American citizens at the same time.
The Entrepreneurial Spirit
Why target immigrants? It was discovered that immigrants are 30% more likely to form companies than native born citizens. Litan lists successes such as Ebay, Google, and PayPal as being co-founded by immigrants. AT&T, U.S. Steel and Procter & Gamble were also created by those born on foreign soil looking for opportunities in America.
Litan further states, there are currently over 1 million highly skilled immigrants in this country legally and 125,000 foreigners graduate from our universities each year. If only 10% of them launched businesses under this program, wed have 110,000 new jobs right off the bat. And that’s welcome news if these grads can get the backing they require.
If we look back at this countrys rich history, we’ll find evidence showing waves of immigrants landing on these shores with dreams, and often the entrepreneurial spirit. These were the people who started neighborhood restaurants, pushed vegetable carts, drove horse drawn milk trucks, and set up small shops. They were responsible for building their businesses large enough to comfortably support their familieseven moreemploying many American workers. Immigrants in the U.S. have great success stories.
Perhaps now there should be incentives to encourage this great entrepreneurial spirit again? After all, America wont see job creation without job creators.
What about You?
Are you an immigrant to this country? Do you believe if you had help to start your own business after graduation you would succeed? If the answer is “yes” to both questions, I encourage you to write to representatives mentioned in this blog.
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