“If you build it they will come.” Lawmakers hope that the creation of an “entrepreneur's visa” will attract aspiring business owners from around the world. Officials recently introduced the Startup Act 3.0 to the Senate floor. The bill aims to add 75,000 visas per year to founders who raise $100,000 and hire at least two employees within a year, according to WSJ.com. The bill is part of a greater effort to restore the United States' reputation as the land of prosperity. More startups means more innovation, more progress and more jobs, so it's not surprising that plenty of groups are cheering for the bill to pass.
…businesses stand to gain the most immediate benefit outside of the entrepreneurs themselves…
With the nation still restless over the state of the economy, politicians on both sides of the isle are looking for an economic spark. The Startup Act 3.0 has bipartisan support, according to WSJ.com, and the prospect of talented immigrants bringing their ideas to the United States has enough steam to garner even President Obama's attention. The President praised American universities for attracting talent but pointed out that the next step was just as important. “Once they [foreign students] earn that diploma, there's a good chance they'll have to leave our country,” the President said, according to HuffingtonPost.com. Representatives may have to enact the “entrepreneur's visa” as part of a greater immigration reform, but with so much support, it's unlikely that it doesn't pass eventually.
Startups mean new clients for B2B businesses. If the Startup Act 3.0 passes, B2B businesses stand to gain the most immediate benefit outside of the entrepreneurs themselves. As entrepreneurs look to set up their credit card processors, cloud-computing infrastructures and email marketing campaigns, they'll turn to companies like Capital Processing Network, Terremark and Constant Contact. This interaction is the reason so many are excited about the potential wave of foreign entrepreneurs. Startups don't just mean firsthand jobs. They also promote growth in other industries.
Of course, a bill creating visas will affect entrepreneurial recipients the most. Despite recent hardships, the US still has the most technologically powerful economy in world, according to Forbes.com. Despite the opportunity for cheaper labor elsewhere, the United States offers startups a centralized place to plan, launch and produce. As consumers realize the importance of local businesses, a trend toward buying local and shopping small has given small business hope. Foreign entrepreneurs could have the chance to capitalize on this sentiment and contribute to America's economic comeback as they grow their businesses.
The benefits of increased competition are clear: more innovation, lower prices and better quality. If foreign entrepreneurs embrace the Startup Act 3.0, consumers should expect the first substantive step toward economic growth since the recession. Consumers may not notice the bill's effect right off the bat, but if it passes and the economy grows, experts will point to 3.0 as a watershed moment.
As Congress works toward attracting foreign entrepreneurs, consumers, businesses and aspiring foreign entrepreneurs have hope that the US economy is on the rise.
Karen is a financial advisor and real estate agent. She also offers tax advice to her loyal blog readers.