

Kaufmann Study - Immigrant Entrepreneurship Has Stalled - jfaucett
http://www.kauffman.org/newsroom/immigrant-entrepreneurship-has-stalled-for-the-first-time-in-decades-kauffman-foundation-study-shows.aspx

======
tokenadult
The underlying study

[http://www.kauffman.org//uploadedFiles/Then_and_now_americas...](http://www.kauffman.org//uploadedFiles/Then_and_now_americas_new_immigrant_entrepreneurs.pdf)

is written by Vivek Wadhwa. His pet issue, often discussed here on HN, is
policy incentives for increased immigration to the United States by persons he
identifies as likely future successful entrepreneus. The key statistic from
the report is this: "The proportion of immigrant-founded companies nationwide
has dropped from 25.3 percent to 24.3 percent since 2005. While the margins of
error of these numbers overlap, they nonetheless indicate that immigrant-
founded companies’ dynamic period of expansion has come to an end."

Okay, so the change in percentage is within the standard error of measurement;
a percentage change of that kind would be seen even if there were more
immigrant-founded companies than ever, as long as more native-born Americans
than ever found companies; and there is NO indication that Silicon Valley's
flood of innovation has ceased. What is the problem here? Quantitatively, what
is the proof that any policy change is needed?

~~~
jfaucett
"Quantitatively, what is the proof that any policy change is needed?"

Well, this subject in general (the US loosing its draw and appeal in the
globalized marketplace), is something that IS not just coming up as it has in
the past but seems to be becoming a serious problem. Here are some
quantitative reports and recent news having to deal with the us specific
issues, [http://globalpublicsquare.blogs.cnn.com/2012/10/03/why-
silic...](http://globalpublicsquare.blogs.cnn.com/2012/10/03/why-silicon-
valley-is-losing-its-luster/) [http://www.fastcompany.com/3000410/silicon-
valleys-world-asi...](http://www.fastcompany.com/3000410/silicon-valleys-
world-asia-edition)
[http://online.wsj.com/article/SB1000087239639044349330457803...](http://online.wsj.com/article/SB10000872396390443493304578038763698056392.html)
[http://venturebeat.com/2012/09/18/silicon-valley-is-in-
dange...](http://venturebeat.com/2012/09/18/silicon-valley-is-in-danger-of-
losing-its-name/)

EDIT: I just wanted to add I'm watching the developments as a non-us developer
and entrepreneur, where some countries I'm familiar with (germany, estonia,
singapore) are actively making policy changes to support startups and foreign
investors / immigrants, specifically in the tech sector. Whereas from what I'm
reading in the US this seems to be increasingly not the case. Obviously, I
would be very interested in stats and news to counter what I'm reading, and
have been watching the "the startup act 2.0" to see where it goes.

~~~
jk4930
>(germany, estonia, singapore)

I'm very interested in Estonia. If you're in Berlin, may I ask you for some
chitchat over a coffee?

------
surferbayarea
Agree, as real data point here: Indian entrepreneur, with graduate degree from
a top US univ, with 6 years experience at a top valley behemoth, working on
their core infrastructure. Now raised seed funding for so-far bootstrapped
business from a top US VC firm. But due to visa issues, having to move most of
the company operations overseas. As a founder, it sucks that there is no visa
which I can get to run this startup! My H1 visa prohibits me from running a
company where I have significant equity. This is just a f __*ing stupid
immigration policy !

------
throwaway1979
I don't understand HN sometimes. There is a saying in statistics: if you
torture the data long enough, it will admit to anything.

The point being ... if you get a statistically significant result, you're not
done. Vice versa, if the data disagrees with your intuition, it doesn't
necessarily mean your intuition is wrong.

------
eaurouge
My theory on this is that entrepreneurship has become more accessible in
recent years. This means more Americans are starting companies thus reducing
the proportion of startups founded by immigrants. Of course foreigners can do
the same from anywhere in the world; a startup based in India can serve US-
based customers just as easily.

Many tech startups from the 80s and 90s were started by founders with advanced
engineering degrees, many of whom were foreign-born. But times have changed
and now you can found a tech startup right after high school.

Tech startups are also not as risky as they used to be, and they've become
more glamorous and fashionable in recent times. I've heard the number of
American kids enrolling in CS programs has also grown in recent years.

