Why Immigrant Entrepreneurs Are Leaving the U.S.
Skilled immigrants are returning to their native countries to start businesses. The author of a new study examines the motivations of Chinese and Indian returneesand urges the U.S. to fix immigration policy to get them back
In a speech last week to Facebook employees, President Obama discussed the role immigrant entrepreneurs play in U.S. economic competitiveness. "We want more Andy Groves here in the United States," he told the crowd, touching on the Hungarian-born entrepreneur's startup success. "We don't want them starting Intel in China or starting it in France."
Sadly, our President didn't back his words with action. He simply said he would support "comprehensive immigration reform," which is legislation that has no chance of passing. This is because it tries to fix all the problems with immigration at the same time. Most Americans will support legislation to admit more doctors, scientists, and entrepreneurs, but they are deeply divided on the issue of amnesty for illegal immigrants. So we're in a messy stalemate.
Our leaders don't seem to understand the urgency of the situation. They fail to recognize how much the world has changed. Entrepreneurs see abundant opportunities in places like India and China now. The world's best and brightest can stay home and achieve as much success as they could in the U.S. Skilled workers who immigrated to the U.S. are optimistic about these opportunities; many are headed back home.
My team at Duke, UC-Berkeley, and Harvard researches the role that skilled immigrant entrepreneurs play in U.S.competitiveness. After we published our study on the reverse brain drain, many academics and policymakers told me entrepreneurs would be frustrated in their native countries and return to the U.S. They pointed to India's weak infrastructure, China's authoritarianism, and the corruption and red tape in both countries.
This prediction seemed wrong based on our observations during visits to India and China, so we launched a project to learn about the entrepreneurial landscape there.
Over eight months, we surveyed 153 workers who had studied or worked in the U.S.and returned to India to start companies, and 111 who went back to China. We detail our findings in our new study, The Grass Is Indeed Greener in India and China for Returnee Entrepreneurs. It shows that the majority of returnee entrepreneurs are doing better at home than they believe they would do in the U.S.
Why did they return home? Because of burgeoning economies, access to local markets, and family ties. More than 60 percent of Indian and 90 percent of Chinese returnees said the economic opportunities in their countries were a major factor in their return. Seventy-eight percent of Chinese were lured by the local markets, as were 53 percent of Indians. And 76 percent of Indians and 51 percent of Chinese said family ties were strong factors.
Respondents took pride in contributing to their home country's economic development.
More than 60 percent of Indians and 51 percent of Chinese rated it as very important.
Government incentives weren't at all important for Indians,
but were very important to 23 percent of Chinese. 
Only 10 percent of Indians and Chinese said they left the U.S. because they had to; others may have been frustrated with their visa situation but had other, more important reasons for returning home.
How does their situation in their native countries compare to the U.S.? Surprisingly, 72 percent of Indian and 81 percent of Chinese returnees said the opportunities to start their own businesses were better in their home countries.
Speed of professional growth was also better back home for the majority of Indians (54 percent) and Chinese (68 percent).
And the quality of life was better or at least equal to what they'd enjoyed in the U.S. for 56 percent of Indians and 59 percent of Chinese.
Why Immigrant Entrepreneurs Are Leaving the U.S. - BusinessWeek
Skilled immigrants are returning to their native countries to start businesses. The author of a new study examines the motivations of Chinese and Indian returneesand urges the U.S. to fix immigration policy to get them back
In a speech last week to Facebook employees, President Obama discussed the role immigrant entrepreneurs play in U.S. economic competitiveness. "We want more Andy Groves here in the United States," he told the crowd, touching on the Hungarian-born entrepreneur's startup success. "We don't want them starting Intel in China or starting it in France."
Sadly, our President didn't back his words with action. He simply said he would support "comprehensive immigration reform," which is legislation that has no chance of passing. This is because it tries to fix all the problems with immigration at the same time. Most Americans will support legislation to admit more doctors, scientists, and entrepreneurs, but they are deeply divided on the issue of amnesty for illegal immigrants. So we're in a messy stalemate.
Our leaders don't seem to understand the urgency of the situation. They fail to recognize how much the world has changed. Entrepreneurs see abundant opportunities in places like India and China now. The world's best and brightest can stay home and achieve as much success as they could in the U.S. Skilled workers who immigrated to the U.S. are optimistic about these opportunities; many are headed back home.
My team at Duke, UC-Berkeley, and Harvard researches the role that skilled immigrant entrepreneurs play in U.S.competitiveness. After we published our study on the reverse brain drain, many academics and policymakers told me entrepreneurs would be frustrated in their native countries and return to the U.S. They pointed to India's weak infrastructure, China's authoritarianism, and the corruption and red tape in both countries.
This prediction seemed wrong based on our observations during visits to India and China, so we launched a project to learn about the entrepreneurial landscape there.
Over eight months, we surveyed 153 workers who had studied or worked in the U.S.and returned to India to start companies, and 111 who went back to China. We detail our findings in our new study, The Grass Is Indeed Greener in India and China for Returnee Entrepreneurs. It shows that the majority of returnee entrepreneurs are doing better at home than they believe they would do in the U.S.
Why did they return home? Because of burgeoning economies, access to local markets, and family ties. More than 60 percent of Indian and 90 percent of Chinese returnees said the economic opportunities in their countries were a major factor in their return. Seventy-eight percent of Chinese were lured by the local markets, as were 53 percent of Indians. And 76 percent of Indians and 51 percent of Chinese said family ties were strong factors.
Respondents took pride in contributing to their home country's economic development.
More than 60 percent of Indians and 51 percent of Chinese rated it as very important.
Government incentives weren't at all important for Indians,
but were very important to 23 percent of Chinese. Only 10 percent of Indians and Chinese said they left the U.S. because they had to; others may have been frustrated with their visa situation but had other, more important reasons for returning home.How does their situation in their native countries compare to the U.S.? Surprisingly, 72 percent of Indian and 81 percent of Chinese returnees said the opportunities to start their own businesses were better in their home countries.
Speed of professional growth was also better back home for the majority of Indians (54 percent) and Chinese (68 percent).
And the quality of life was better or at least equal to what they'd enjoyed in the U.S. for 56 percent of Indians and 59 percent of Chinese.
Why Immigrant Entrepreneurs Are Leaving the U.S. - BusinessWeek
