Foreign-born entrepreneurs on a decline in Silicon Valley

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The number of US high-tech start-ups founded by immigrants – a significant source of growth for the American economy – has fallen in recent years, according to a study by the Kauffman Foundation.

The study revealed that the proportion of companies started by foreign-born entrepreneurs has slipped from 25.3% to 24.3% since 2005.

This decline is more pronounced in Silicon Valley where the percentage of immigrant-founded start-ups dropped from 52.4% to 43.9%.

The survey suggested that an “unwelcoming” immigration system is the reason why foreign-born entrepreneurs are getting discouraged.

"For several years, anecdotal evidence has suggested that an unwelcoming immigration system and environment in the US has created a 'reverse brain drain.' This report confirms it with data," Dane Stangler, director of research and policy at the Kauffman Foundation, was quoted as saying in AFP.

"To maintain a dynamic economy, the US needs to embrace immigrant entrepreneurs."

The study comes at a time where there is fierce debate in the US on immigration policies, and on visa caps set for highly skilled immigrants.


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