immigrant entrepreneurs: a key to rebuilding u.s. economy

Richard Herman

Immigrant Entrepreneurs

A KEY to rebuilding our economy and creating jobs

Nearly 2/3 of America is an

immigrant, a child or grandchild of an

immigrant, or married to an

immigrant

some came to these shores

voluntarily……..some did not

We Are All Immigrants

It’s in our DNA

we are strivers and survivors

Rust Belt Is Hemorrhaging Jobs & People

MICHIGAN

Over last 10 years, lost 790,000 jobs

Detroit: over last 60 years, lost 50% of population (1.8 million to 900,000)

Percentage of immigrants dropped from 30% to 10%

OHIO

Over last 10 years, lost 525,000 jobs

Cleveland: over last 60 years, lost 60% of population (950,000 to 396,000) (17% in 10 yrs)

Percentage of immigrants dropped from 30% to 5%

In 2011, with the U.S. economy stuck in first

gear, it’s time we remember……..how to

drive the economy …..FAST

we welcome the job-creators

To immigrate is an

entrepreneurial act

--Ed Roberts, Founder MIT Entrepreneurship

Center

* 40% of Fortune 500 companies were founded by an immigrant or child of an immigrant

* These companies employ 10 million people worldwide, and generate

$4,200,000,000,000 in revenue per year

Immigrants Create Jobs

Ford Google Intel

GE Budweiser Home Depot

AT&T McDonald’s U.S. Steel

Boeing IBM Dow

Disney Kraft UPS

Apple Procter & Gamble Estee Lauder

Hertz Levi’s DuPont

Pfizer Bank of America Heinz

7 of 10 most valuable brands in the world were created by U.S. immigrants or

children of U.S. immigrants

Immigrants have created millions of jobs for Americans, and will create millions more….

if we let them --- in advanced manufacturing, clean energy, biotech, advanced materials,

exports….

But….Isn’t “Immigrant”

a Dirty Word?

George Carlin’s 7 Dirty Words

We don’t talk about immigrants as the

Dream-Keepers, the Job-Creators, the Bedrock of

Family-Values, the ENGINE that makes

America work!

Time to Change the Conversation

When it comes to job growth, STARTUP companies aren’t everything……..

they’re the ONLY THING!

• ALL net job creation in America over last 25 years comes from STARTUPS --- creating 40 million new jobs

• New Firms add an average of 3 million jobs in first year

• Older companies lost 1 million jobs annually• --- Kauffman Foundation

STARTUPS: New employment paradigm

So WHO are behind the startups in America?

USA: Immigrants Driving the New Economy

& Urban Revitalization

* Immigrants twice as likely as native-born

to start a business; * Immigrants founded more than 50%

of the high-tech companies in Silicon Valley;

* Immigrants are more likely to earn an advanced degree, invent something, and be awarded a U.S. patent;

Immigrant-Founded Companies

Compiled by Richard Herman, www.ImmigrantInc.com

*2009 Nobel Prizes in Science --- U.S. Dominated with 8 out of 9 going to U.S. citizens (over 50% foreign-born Americans)

*Immigrants fi ling patents at twice rate of American-born.

*Immigrant patent fi lings: 72% Qualcomm, 65% Merck, 64% GE, 60% Cisco

Immigrants Are Driving U.S. Innovation

* 25% OF ALL PUBLIC, VENTURE-BACKED FIRMS IN U.S.

FOUNDED BY IMMIGRANTS

* ADD HIGH TECH LABEL, PERCENTAGE INCREASES TO 40%

* MARKET CAP OF $500 BILLION --- PUBLIC, VENTURE BACKED

IMMIGRANT COMPANIES

The venture capitalists know a

deal when they see one

Immigrants Can Drive Exports

Research in Sweden demonstrates that a 10 percent increase in immigrant population was linked to a 6 percent increase in bilateral trade with the immigrants’ home country. Furthermore, the study found for every 12,000 immigrants, Swedish exports would increase by approximately $1 billion dollars.

U.S. Immigration & Its Job-Creation Capacity:

BROKEN

Immigration Policy Is Not Aligned with Nation’s Economic Development Needs

Malawi = India (nationality quotas: each country allocated 7% of employment based green cards per year, regardless of their nation’s population)

.

Discriminate Against Highly Skilled. Of 1 Million Green Cards issued per year, only 4-5% or given to highly skilled (advanced degreed) or investor immigrants

These quotas are nearly 60 years old ----- they

have no relationship with the needs of America’s

New Economy

Skilled immigrants, many of whom want to

start their own company in the U.S., have to wait

up to 8 years for a Green Card

We train the world’s best and brightest at our

universities…..only to “kick them out” of the

country when they graduate with their

advanced degrees and encourage them to

compete AGAINST the U.S.

We treat them like DIRT, instead of the

GOLDEN-JOB-CREATORS!

What part of

“legal immigration is#!@x^#!-ed up”

don’t they understand?

So, they are leaving (or not coming at all)

First time in U.S. history----- reverse brain drain, over 100,000 high skilled immigrants are

expected to leave the U.S. in next 10 years

They see new opportunity in their

home countries, or are welcomed in other

countries

Canada and other countries are coming to U.S. soil to recruit our disgruntled high-skill immigrants, offering

them fast-track citizenship, jobs, and

business support

This is what NYC Mayor Bloomberg calls:

“National Suicide.”

And not just PhD immigrants ----- all hard-

working immigrants with a dream.

It’s all connected.

$1.5 trillion added to GDP in next 10 years

….If we legalize the 11 million undocumented persons in U.S.

Study at UCLA,

2010

“The richest regions are those with the highest proportion of immigrants.” President’s Commission on

Immigration, 1953

REFUGEES CAN CHANGE THE WORLD

“World Is Flat” Guy, Tom Friedman

“Dear America, please remember how you got to be the wealthiest country in history.

…the formula was very simple: build this really flexible, really open economy, tolerate creative destruction so dead capital is quickly redeployed to better ideas and companies,

Pour into it the most diverse, smart and energetic immigrants from every corner of the world and the stir and repeat, stir and repeat, stir and repeat.

It’s important that we understand WHY so

many Americans fear and loathe the new

immigrants

America’s Demographics Are

A-Changin’

* Last decade, 85% of population increase from racial & ethnic minorities

* 1 out of 7 new marriages are interracial

* Young whites (under 18) are the minority in 10 states, including Arizona

* By 2021, the majority of children 4 and under will be minority

* By 2042, the majority of all Americans will be minority

Talent is the New Oil. Drill, Baby, Drill!

Want to Win? Build the most powerful teams on the planet (just like NBA)

The Dream Act

The Staple Act

Can Immigrants Save the Rust Belt?

Fastest Growing Metro Areas for Technology Jobs (Dice)

Detroit: 101% Cincinnati: 75% Cleveland: 62% Columbus: 57% Seattle: 54%

Pittsburgh: 45% Miami: 43%

Jacksonville: 41% Chicago: 40%

Silicon Valley: 40%

Expanding Tech Job Market in U.S.

Dice by the NumbersAs of February 1, 2011*

Available Tech Jobs: 74,413Full-time Positions:

46,837Contract Positions:

32,239Part-time Positions: 1,524

Better Educated & Make More Money

* 40% of adul t immigrants in 8 -county reg ion ho ld co l lege degree vs . 27% of nat ive-born

* immigrant medium fami ly income in Cuyahoga County i s $60 ,272 vs . $57 ,463 for nat ive-born.

Northeast Ohio Immigrants: The Facts

it’s all connected

Philly enjoys an ecosystem that welcomes & connects immigrants, revitalizing neighborhoods

After decades of out-migration, Philly shows population increase for first time in 60 years --- in large part due to influx of immigrants between 2000 and 2010

“I am concerned by the majority’s attempt to manufacture tension between African-Americans and immigrant communities. It seems as though they would like for our communities to think about immigration in terms of ‘us versus them,’ and I reject that notion.”

March 1, 2011, Rep. Emanuel Cleaver (D-MO), Congressional Black Caucus

FORBES, 2011:

ATLANTA: #1DETROIT: #47

CLEVELAND: #51

Cleveland vs. Atlanta as a Launchpad for Minority

Entrepreneurs

Silicon Valley Cleveland

Cleveland vs. Silicon Valley

Similar number of nodes of various technology and cultural assets…….but

connectivity between each city’s nodes is vastly

different

HYPER-CONNECTIVITY (TEAR DOWN THE SILOS)

What Does the New Economy Crave?

John Sibley Butler, Director of Entrepreneurship, University of Texas, Austin

TiE Global 2903 Bunker Hill Lane, Suite 108, Santa Clara, CA 95054

70

World’s Largest Non Profit Fostering Entrepreneurship

EDUCATING MENTORING NETWORKING

Tokyo

Melbourne

Extending Global Footprint

October 12 2010

Kansas City

Scaling to Next Level

Mauritius

Singapore

Dubai

Silicon Valley

Hey, America…..time to “think like an immigrant!”

Key to Success: “think like an immigrant” Omid Kordestani

WAKE-UP, AMERICA!

Want Jobs? Tap the Immigrant Dividend

Welcome the Job-Creators by Reforming Immigration Law & Changing Our Attitudes

www.ImmigrantInc.com

Good Luck

We Are All Immigrants

Richard T. Herman, Esq.Herman Legal Group

www.HermanLegalGrouup.com

(216) 696-6170Rich@HermanLegalGroup.com

Immigration Law Firm for Businesses & Families