VISAS

Finweek English Edition - - COVER STORY -

Based on data from the US Cen­sus Busi­ness Dy­nam­ics Statis­tics, the Kauffman Foun­da­tion study’s au­thors eval­u­ated the Start-Up Visa’s job cre­ation po­ten­tial un­der three pos­si­ble sce­nar­ios:

If Start- Up Visas were avail­able in 2014, 75 000 would be filled, and af­ter four years, 37 108 firms would still be op­er­at­ing.

Af­ter 10 years, nearly 100 000 com­pa­nies will have reached four years and aged out of the visa pro­gramme. New com­pa­nies also would have been added over the 10-year pe­riod, grow­ing the de­nom­i­na­tor of new firms by more than the num­ber of avail­able visas. Com­pa­nies founded by Start-Up Visa hold­ers would cre­ate be­tween 500 000 and 889 000 jobs, equat­ing to 0.5% to al­most 1% of GDP, re­spec­tively.

The third sce­nario as­sumes that half of the age four firms would be tech­nol­ogy and en­gi­neer­ing firms es­tab­lished by H-1B hold­ers, who typ­i­cally are em­ployed in the sci­ence, tech­nol­ogy and en­gi­neer­ing sec­tors. Pre­vi­ous re­search has shown that im­mi­grant­founded tech­nol­ogy and en­gi­neer­ing start-ups em­ploy an av­er­age of 21.37 peo­ple per firm. This sce­nario would cre­ate, at min­i­mum, 1.6m jobs over 10 years, or 1.6% of GDP, among com­pa­nies that age out of the Start-Up Visa pro­gramme.

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