Entrepreneurs have always been an integral part of the US economy. But, of late what has been noticed that nations’ immigration policy is not in favor of the international entrepreneurs. However, with the soaring unemployment rate, it is time for the nation to give a second thought to its immigration policy pertaining to entrepreneurs.
In an attempt to attract overseas entrepreneurs, US launched it immigrant investor visa category, which is commonly known as EB-5 way back in 1990. Considering the tough requirements one has to meet for this category, the attempt hardly brought the expected results. The reason behind creating such a visa scheme is to create more job in the nation. Unfortunately, the aim was not achieved owing to tougher criteria for international entrepreneurs.
As per a 2008 report, as compared to non-immigrants in the US, migrant entrepreneurs are thirty percent more likely to set up new businesses. AS a matter of fact, immigrants comprise nearly 16.7 percent of the all new business owners in the nation. Considered, but when it comes to job creation, international businessmen are always missed out on discussions pertaining to immigration policy or other economic debates.
US immigration law has been tough for EB-5 applications. Sometimes, the requirement of hefty capital and other time the compulsory criteria of having flair corporate knowledge, as well as the understanding a number of aspects- from the country’s immigration law to it tax system and investment policies have made it difficult for international entrepreneurs to explore the US economy.
It is being noticed that the implementation of EB-5 visa scheme has been catering to investors (keeping in mind the significant capital requirement), rather than attracting entrepreneurs. According to the figures provided by the US immigration department, on a yearly basis, about 90-95 percent of alien Investors file for Form I-526 in order to make investment in existing businesses in the US, but they are not starting up new businesses.
With meeting much below the expectations from the EB-5 visa scheme, if the US wishes to launch another visa program which can help it create jobs, one point the legislation must keep in mind- if asked entrepreneurs to boast higher capital money, the same results (from EB-5 visa) would repeat once again. As far as the nation’s job creating aim is concerned, hefty amount of capital investments are definitely going to be a barrier in the path of fulfilling the aim.
Talks are even on the pipeline that the nation is likely to have a new immigrant investor visa policy. International entrepreneurs would be able to enter the US, as well as obtain permanent residency on the conditional that they would start a business and be able to generate alt least three local workers.
A lot more changes to come on the United States’ immigration front. Stay tuned to Abhinav Blog!