Jim Gilchrist, MMP Exclusive – According to Washington Post columnist Vivek Wadhwa, the latest version of the Start-up Visa program under consideration in Washington amounts to a “free lunch” for the Nation. So why not do it? [See column at http://tinyurl.com/aogttzt]
Under this program, up to 75,000 foreign students and skilled workers will get to work on starting companies that stand to eventually employ hundreds of thousands of American workers.
Who qualifies for the Start-up Visa program? Those already in the United States on temporary visas. Their companies must receive an investment of at least $100,000 and employ a minimum of two U.S. workers in their first year, and five by the end of the third year. “This will likely give the economy a quick boost and increase public acceptance of comprehensive immigration reform,” concludes Vivek.
Now here’s a dose of reality for Vivek: The great majority of startup companies never make it past the first year and, of those that remain, it is not likely that a single one will go one to become the next Facebook or Apple. In fact, the success rate for first-time entrepreneurs and veteran entrepreneurs alike is only 12%, according to Funders and Founders, which connects startups with funders. They also say that the more you try, the more chance you have of succeeding, but under the Start-up program you get only once chance.
You would think that if a new business managed to survive its first year, it would be stable enough to keep growing and join the ranks of firms considered as truly successful. According to data gathered by the U.S. Bureau of Labor Statistics, only 44% of new businesses are still in operation after four years.
So here we have another nonsense argument proffered by an immigration reform advocate who is merely trying to convince the rest of us that opening the floodgates will save our economy and reestablish the Nation as a powerhouse of innovation.
Of course, only immigrants with advanced degrees can do this because Americans, well, we’re just not that smart anymore. And don’t forget — all these wonderful benefits are supposed to be achieved by 75,000 foreign entrepreneurs who stand only a 12% chance of success.