The biggest criticism of the US government’s H1-B visa program is that it takes high-tech jobs away from deserving US citizens. A new visa proposal could actually have the opposite effect: It may create jobs in the US.
A so-called “entrepreneur's visa” would allow foreign citizens who start new businesses and create jobs in the US to stay in the country, according to The Wall Street Journal. The entrepreneur provision is part of a larger visa proposal that would make it easier for foreign students to remain in the US after they finish their studies, the WSJ says. The students must have a specific skill set: They must hold post-graduate degrees in math, science, or engineering.
US visa programs and its university system have come under increasing fire in the past decade. Critics charge that specialty visas displace US workers; and that universities educate foreign students who take their skills back home after their education is done. The new proposal appears to address both issues by encouraging job creation and by retaining talent.
The H1-B visa program, which allows companies to hire highly skilled foreign workers in the US, has long been a cornerstone of the tech industry. As fewer and fewer US college students graduate with engineering degrees, tech companies say they have to look outside the US for qualified employees. The H1-B program allows individuals with highly specialized skill sets to work in the US in three-year increments, which can be renewed. (See: 2013 H1-B Visa Cap Remains the Same.)
Opponents of H1-B visas say the program has been exploited to bring in workers who are paid less than their US counterparts. This has been a particularly touchy subject in the last few years as US unemployment rates have increased and fair immigration policies are being debated in a presidential election year. (See: H1-B Critics Outline Program Flaws.)
The WSJ reports that the new bill already has bipartisan support. Additionally:
The bill would also create a targeted tax credit to encourage startup firms to invest in research and development. It would allow investors who cash in investments made in start up businesses to avoid capital gains tax as long as they had held the investment for at least five years. This last provision was included in a small business bill signed into law last year.
It would require the administration carry out a cost benefit analysis of any new regulation that has an economic impact of greater than $100 million.
The bill’s backers are hoping that by combining popular immigration provisions with tax and regulatory measures they can convince Senate leaders to bring the legislation to the floor, and avoid a wide ranging debate on immigration policy that would be almost certain to doom the bill in an election year.
That is quite interesting idea. They should implement it sooner and I wish it to successful.
This could definitely encourage foreign student who are interested start their own firms. Probably this visa can be given fast with less fee and with long validity to boost confidence among foreign enterprenuers.
Barbara, I think that's a good move from the federal government, especially when the unemployment rates are high. According to the new visa norms, government is going to welcomes the foreigners as an entrepreneur and not as a job seeker. This can intern create more local employment opportunities in theoretically, but whether the local markets are equipped with sufficient trained/ skilled labors. Otherwise, again the companies will try for more H1-B visa, for importing skilled labors from abroad.
Well, it is good to hear about. Also from my side, I tell you this step could provide a realistic help in moving here, some doubts on business still remain, if we consider continuous jobs' cut we are assisting, including major vendors in the tech arena.
Such kind of entrepreneurial visa may create more cultural problems than with the current H1-B visa system.
Will the local American job seekers be ready to work under those Non-American owners of the company . The owner-worker relationship gets inverted here which can have a psychological problem among the native work force.
An interesting development.
could really be a start of new things. I think it will do more in allowing foreigners come in, although it would help a few fresh graduates with the desire to start something fresh.
I believe this is just a part of a larger project, becuase young entrepreneus need more than open doors into the economy to thrive. Other things must be put in place to support and encourage them.
Creating startups with an “entrepreneur's visa” may not be a problem, but my question is whether those companies could remain viable in a competitive market. There is a higher risk that most of the startups would fail due to many social and cultural reasons. The time spent in a US college may not be enough to understand everything about how to do business in the county
@TIOLUWA:
“young entrepreneurs need more than open doors into the economy to thrive. “
That's right. If that is true for US born citizens, it is much more true for new comers. Besides, it takes many years and studies to understand how to set-up a successful business in a new country.
“The time spent in a US college may not be enough to understand everything about how to do business in the country”.
Yes Hospice the perspective you have viewed it – long run advantage for the should-be enterpreneurs. Fortunes and sustainability/competitions and more, all those may be considered at later once the unque start-ups get acquired by the already established ones.
Meanwhile, developed world has been the beneficiary of brain-drain ( brain- gainer), if students finish their studies instead of fighting it out with other job seekers on little jobs available government would rather allow them begin something in their fields. If that is not put in place, best of brains would eventually go somewhere else or back to their countries. Especially in this present financial chaos talents cant be compromised, still there is need to balance development in all other sectors of governance. That is long term goal! I think.
Even similar visa scheme got introduced in the UK last year – effective from April 2012.
This is a positive move to create jobs for the US citizens as well as the foreigners. Although I cannot see much of a difference between this scheme and the existing scheme where the US entrepreneurs are creating jobs for both the US and the foreing workers. This scheme makes sense if the growth rate of the US entrpreneurs is declining and hence the number of new jobs are decreasing.
Although the new visa will increase the number of new jobs in the US created by foreigners, I think this scheme should also be backed up by tax incentives and similar cost reduction support for the foreign investors to be successful.
It is important to remember that creation of new jobs is a global problem at the moment and other countries also encourage and welcome foreign entrepreneurs to create new businesses. I know countries where government provides income tax reliefs for a number of years for new businesses as well as national insurance support for each employee etc.
This is an interesting point, in my opinion because positive impact coming from this step ahead in Visa, has to be integrated in a whole design for starting again the economy. Perhaps, while this step remains alone, positive impact will be limited. The discussion on restarting economy was one of the key point during recent G8 meeting, held a few days ago.
This is something which I was waiting for. Only concern is that with the current job market situation will it be the ideal solution ?
I think this is a step in the right direction to create high worth jobs in the USA. It will be interesting to see if other countries follow suit.
Guys,
This is a fact which is undisputed-America's Debt burden is Gigantic today and unless we get outside Investors to Help us Grow and Service our Debt burdens we are heading for a catastrophic debt Default/Non-payment of Liabilities(similar to what's going on in Europe Currently).
For a clear idea Read HERE
http://www.marketoracle.co.uk/Article34819.html
More examples ,the IRS decides to let Altria get away with a small fine to pay for a Tax dispute
HERE and HERE
http://www.reuters.com/article/2012/05/22/altria-irs-settlement-idUSL1E8GMJOX20120522
http://www.irs.gov/newsroom/article/0,,id=257542,00.html
Most probably,what's coming Next is A Tax Holiday for all Tech companies who hold Trillions of Dollars Offshore.
This is all being done primarily because this is an Election Year and the White House wants to pretend as if they doing a lot to Help the Economy improve and Cut the Budget Deficit.
You know what would really help ?If Regulations(and especially the Useless Paperwork) that it takes to start a Business be cut sharply within America today.
That and a total Rollback of Obamacare.
If we don't have to bother with these two Issues today,Americans can do everything to Generate Real and Sustainable Jobs today[Without any special incentives for Foriegners].
Besides Foriegners today are not that Stupid-If they want to Set up a Business they go to places like Hong Kong,Singapore and Dubai where Red Tape is minimal and you get to keep a majority of your Profits unlike what happens in the US where the Govt changes the rules on you whenever it suits them.
Is it any surprise that an increasing Number of Americans are every year,chosing to Revoke their US Citizenship(The most famous case has been Eduardo Saverin-The C0-founder of Facebook)???
Regards
Ashish.
Mfb,
All the Talk at the G8 was just that-More Talk.
Is it any surprise that Europe continues to struggle more and more every single day?
Nobody has the Money to bailout a Clearly Bankrupt Europe today.
Latest News Catalonia is begging the Spanish Federal Govt(which itself is Bankrupt btw) for HELP!!!
http://www.reuters.com/article/2012/05/25/spain-catalonia-idUSL5E8GP73Z20120525
This whole House of Cards called Europe is going to crumble and the Impact on America(Europe remains America's Biggest Trading Partner) is also going to be HUGE;I don't know if its any consolation or not but Asia(particularly Singapore, China,Taiwan,Thailand and Japan ) will get HIT even worse.
Regards
Ashish.
Hospice,
I am not disagreeing with what you say here;(it will be difficult for an Outsider to come in and overcome all Cultural Barriers immediately).
But this Visa can makes things slightly easier for them to setup a Business Here.
What one wonders is whether America still remains an Attractive market for them or would they prefer to setup Business in Asia or Africa today?
Regards
Ashish.
Crypto,
I wish I could have said it any better than what u just said.
Extremely Accurate and on the case!
In America two major Things are major impediments to Business Growth
One is Obamacare and the other is excessive Bueracracy/Paperwork.
Revoking both these measures will go a long way to ensuring Massive Business growth in America.
Till then,this will just be a way for America to Grab a Share of Global FDI flows.
Regards
Ashish.
What one wonders is whether America still remains an Attractive market for them or would they prefer to setup Business in Asia or Africa today?
I think US will continue to create, and attract to world considering the fact that is a pinnacle of technological innovations. The close/best market alliance to US – Europe. How would Europe transit from its present state of financial debacle back to good worthy of ruminating on.
Wale,
I am positive on US too.
But for a slightly different reason.
Thanks to the Shale Gas Boom;We have access to the Cheapest Energy Globally.
You can't beat that as a Competitive Advanatage easily.
If only America would simplify regulations & cut Taxes much-much more we would be back on our way to creating sustainable Growth.
Regards
Ashish.
@Bale Bakare:
“developed world has been the beneficiary of brain-drain”
That is also the main reason behind the “entrepreneur visa”. Don't you think? The main trend will continue, but now the US government wants to encourage foreigners to invest and create jobs in the country.
@tech4people:
“What one wonders is whether America still remains an Attractive market for them or would they prefer to setup Business in Asia or Africa today?”
That is a good point. Many visa seekers would rather prefer to work in the US for a company and get a salary rather than setting up a business there. The US government should be aware of that. Or are they thinking that people are eager to come and stay in the USA no matter what it will cost them?
@FLYINGSCOT
“I think this is a step in the right direction to create high worth jobs in the USA.”
Hmm… Do you really think so? The idea certainly carries some hope, but the outcome may not meet all the expectations.
Hospice,
Politicians everywhere have this unique quality-Its called Hubris.
Hubris in their own abilities and Talents to overcome Secular Market forces.
American Politicians are No Different.A lot of foolish politicians still(&claim) America is the Land of the free.
Compare and contrast the responses of Two very different people-One a Politician and other a Hugely Sucessful Entrepreneur and you will know what I am driving at here
http://articles.latimes.com/2012/may/11/nation/la-na-michele-bachmann-swiss-20120511
http://www.bloomberg.com/news/2012-05-11/facebook-co-founder-saverin-gives-up-u-s-citizenship-before-ipo.html
Eduardo is on track to save over $600 million by Abandoning the US passport!!!
This is all what Global Entrepreneurs need to say or hear.
Even after policies like the NDAA and SOPA gain widespread traction do u still Think America is the Land of the Free?
And what about this one?
http://www.wired.com/threatlevel/2012/03/ff_nsadatacenter/all/1
This is a Good Video I highly recommend you watch
http://www.youtube.com/watch?v=fwAjaqhwoek
Regards
Ashish.
Guys,
Think rationally,Why would a Govt promote any Policy(by pumping 20 million US -no less) into a Failed Idea???
Its only to prop up vested Interests that are making the cost of Business Sky-High for all SMBs.
More evidence just in
http://thehill.com/blogs/healthwatch/health-reform-implementation/228699-hhs-inks-20m-contract-with-pr-firm-to-tout-preventive-benefits
A brilliant piece of analysis on the whole issue here
http://www.mises.ca/posts/blog/the-taxpayer-funded-pr-campaign-for-obamacare-begins/
Regards
Ashish.
Hospice,
I had written about these issues below here.
“
In America we have two major impediments to Business Growth One is Obamacare and the other is excessive Bueracracy/Paperwork. Revoking both these measures will go a long way to ensuring Massive Business growth in America.
“
Capital and the Best Brains go where they are well cared for.Right now the US is somewhere in the Middle on both these measures.If America wants to go straight to the top;then we need to Simplify,Simplify and Simplify.
Regards
Ashish.
HH, along with that another important point is whether the local governments are capable to create necessary infrastructure and manpower for startup companies. Most of the startup companies may need angel/VC funds, tax payment holidays or some extra benefits from the local authorities.
“Capital and the Best Brains go where they are well cared for”
Asish you are right and its quiet natural. In order to attract the best brain and capital investments, the government's has to do the needful. We know the Red tapisom / Bureaucracy are the major problems with investments and industrialization. Eventhough government announces many schemes for FDI and other investments, this category of peoples make it cumbersome.
Jacob,
Another question is whether all the startups would be treated the same by the government and get the incentives that are offered to national startups? It may be so on paper, but what would it be in reality? I wish those who are really interested in the “entrepreneur visa” could be able to realize their dream and not regret anything in the end.
@FlyingScot, In addition, the move is not only to create jobs but to stimulate the US economic growth. . Will other country follow suit? I'm curious to know, which other country would you like to see follow this move?
@Cryptoman, you're right that job creation is an issue in this current economic climate. And I agree, the US government will need to do more to entice foreign business investors. I think the H1 – B Visa programme is a good move, but like you said, it needs to be backed by tax incentives of some sort.
I the various supporting policies in place, or soon to be implemented to surport the idea behind the H1-B visa will determine what class of businesses it atracts.
Getting foreign investors in is one thing, encouraging young start ups by foreigners is another thing all together.
@tech4people: thanks for sharing your thoughts; anyway if we consider what happened once Facebook have started its stock adventure, it seems US still facing bubble issues, am I missing something? – rgds.
Mfb,
I was just reading about bad the Debt situation is in Spain,Japan and the UK today.
Do watch it HERE
http://www.youtube.com/watch?v=cfPJu-CeNks
In a rational world where Countries had to compete for Capital with the Private Sector today;these Debt Burdens are clearly unsustainable.
Still How much do UK or Japanese Bonds Yield today?
Less than 3% Annually.
Why is that?
Because they have access to the Printing Press.
I don't disagree that most Markets Globally are in Bubble Mode.But if you were wondering which Bubble would prick first;then its Gonna be Japan,the UK and the US(in that order). Europe is just ahead of this Queue here.
Why restrict ourselves to just Bond markets ,I was recently reviewing Property Prices Globally and I was most Amazed by how expensive Property is in the UK,Switzerland,Australia,Canada,Singapore ,Hong Kong,China,Brazil and India today.
Take just one example;In India it takes 40-50 Years today for an Average Working Class Person to buy a Home in the Three Biggest Property Markets in India(None of the Buildings will last even 30 years…)!!!
If that is'nt a Bubble I don't know what is.
Regards
Ashish.
I wish those who are really interested in the “entrepreneur visa” could be able to realize their dream and not regret anything in the end.
It depends on individuals. Government has its plans and US market climate is better to other developed nations, perhaps the best. I dont really envisage potential enterpreneurs regretting it.
I agreed with you. Here are few contrasting points over US and Europe:
1 – Numeric population advantage
2- Ahead in innovations
3- Allow foreign nationals to participate and involve in technical and engineering developments and innovations.
4- Language
Wale,
You forgot one more.
Work Culture.
Americans are ready and willing to work much-much harder than Europeans today.
And they are ready to kick out politicians who dont act tough with Public Unions like in Case of Wisconsin and Scott Walker.
Most interesting article from the BBC do read.
Over-paid Public Sector workers are getting fired because of their intransigent behavior.
http://www.bbc.co.uk/news/magazine-18332369
By the way in what is likely to be a death blow for Unions,Scott walker won the election Big-time in Wisconsin.
Regards
ashish.
@tech4people: many thanks, interesting analysis; how we could explain the up&down of Facebook? What was the real value of the company in terms of stock? Is it the current or the that one used at first stock market launch?
Mfb,
There are two ways to look at any Stock(including Facebook).
One is the Benjamin Graham school of Value Investing where you look at things like Cash on the Balance Sheet,Dividend Payouts,How fast the company is Growing,PE ratios and the immortal Concept of Margin of Safety.
Based on those metrics I would'nt value FB at more than $10-$12/share.
However,since FB does'nt pay Dividends,I would rather wait till I see a steady stream of Annual Dividends from FB before I consider investing in FB.
If this price scares you,The really hard-core practicioners of Value Investing put FB at not more than $7.50/share!!!
Check this out
http://moneymorning.com/2012/05/25/facebook-stock-is-worth-7-50-a-share-at-best/
The second way is to look at what the market is ready to pay for the Stock.
Right now FB is still falling so we need to wait for it to stabilize for atleast a month before investing in the stock.
The market at the end of the day is the Judge Jury and executioner of any Idea.And right now the Market is still giving a massive Thumbs Down to FB Stock.
Now there is another way of looking at this Whole issue.Do you feel the problems which caused the crash of 2008;were a One-off? Have Governments done anything to reduce the risk of a similar Synchronized Global Blow-up once again in the Near Future?
The following two presentations straightaway argue that Governments have'nt done anything to prevent a repeat of those problems.
So the chances of a repeat of 2008 are very-very High.
If they do happen,then the NASDAQ will very well end up very close to 1500 levels;that's a 45% Drop from where we are today.
In that sceanario;Do you think FB will stay where it is today(close to $25/share)?
I don't think so.If we get such a crash once again then FB is going to end up very close to $7-$10/share.
Anyways,the moral of the story is Stay away from FB for now.
But do read both presentations.The Material is fantastic!!!
http://www.scribd.com/doc/95493792/The-End-Game
http://www.scribd.com/doc/96356876/Eidesis-Capital
As for looking at the Daily gyrations of the stock;I don't care(and neither should anyone else who is serious about long-term investing).
What only matters is the long-term direction and right now that direction is Down.There is no doubt that the IPO was heavily over-priced and now that everyone is getting super dissapointed they keep dumping and exiting the stock.
Lets get a bottom in first.Then we can see what the market percieves as Fair Value for FB stock.
Regards
Ashish.
A deep look into Facebook since its inception in US, i think on a positive note has contributed to the development there. What do you think?
@tech4people: fantastic ! The first one approach is maybe more professional, but the second is really attactive, at least speaking for my self. Personally, I am absolutely in line with what have you suggested and I fill great, your way ( “what the market is ready to pay”) for summarizing a concept with behind seveal complex factors. Very good. Thx.
@WaleB: good point Wale, I am convinced that a sort of case study could really help, in a positive sense, people, investors and companies, in avoiding any ” bubble impact”, while stock market would like to launch a given start-up or firm; coming back to FB, maybe it should be better to approach the study by a timeframe longer (i.e. a couple of quarters), for considering preliminary results.
wale,
I am not so sure.
Why is that so?
There is so substitute for doing your own due-diligence ,your own research and doing basic Maths.
But then what are you going to do about Basic Human emotions like Greed and Fear?
The Biggest Winners and Losers in any Market know how themselves better than anything else.
Markets have'nt changed much in the last Hundred Years;Human Pschyology is as predictable as ever.
Regards
Ashish.
There is so substitute for doing your own due-diligence ,your own research and doing basic Maths.
@Ashish absolutely true!
Ariella,
There is one more thing.
Ignore MBAs and anything what Wall Streeters say.
99 times out of 100 they are more interested in their own welfare not yours.
Think about it,if Morgan Stanley wanted,they could have gone with FBs original recommendation of IPO price of $28/share,But no the Greedy crooks just wanted to fleece as many suckers as they could.
Guess what,The ordinary Joe on the Main Street is tired of getting ripped off every single time by these crooks.
He checked out of this Stock market casino a longtime back.And he ain't coming back in anyway like these crooks need to keep their businesses viable today.
Cheers
Ashish.