There is growing number of Immigrant Entrepreneurs starting up successful businesses. Much of the great success has to do with strong motivation and drive to succeed at any cost, especially when many consider there humble origins of where they came from. Forbs and Psychology today have published such as the one below on why do foreigners make better entrepreneurs.
Forbes Magazine recently reported that first-generation American migrants were starting businesses at over twice the rate of natives. In addition, first-generation migrants create start-ups at twice the rate of second-generation migrants. There is a lot of data on this phenomenon. And the pattern is the same for many Western countries. But what is the explanation?
Migrants have ‘get-up-and-go’ flair. Whether they are more likely to be in that surprisingly small number of the ultra-successful or not is unclear. But you only have to look at various Rich Lists to see by name or photograph that all sorts of minorities seem to be over-represented.
This comes from a recent Harvard Business Review blog by a colleague: Half of the world’s skilled migrants go to America and in the past 20 years created 25% of all American venture-backed companies. There are around 500 start-ups with French founders just in the San Francisco Bay Area of California. There are over 50,000 Germans in Silicon Valley, where salaries for software engineers are much higher than in Europe.
It seems that when we look at business start-ups, particularly those that succeed, immigrants are unusually over-represented among the entrepreneurial and innovative. Some countries are so concerned about this that they offer “start-up visas” or “short-circuited passports” to those likely to bring prosperity, not only to themselves, but also to their family, community and adopted country. They are the ideal type of migrants: net ‘givers’.
That is why talent scouts go to top schools, universities and business schools in Asia to encourage the best students to come to their country. In this world, being less erudite and linguistically skilled does not matter.
These entrepreneurial immigrants are often most commonly found in the technology and engineering sector. Note maths, not languages: boy’s stuff. Here you only need raw fluid intelligence, not book learning. It is the inventive urge that often results from spending too much time with computers.
- On Immigrants Versus Expats (disinfo.com)
- Ken Braun: Michigan needs entrepreneurs and that means more immigrants (mlive.com)
- Shining a light on entrepreneurs (walesonline.co.uk)