With a weak economy and high unemployment rates, startups are important to job creation. In fact, if it weren’t for startups, net job creation would be negative, according to a study by the Kauffman Foundation.
Robert E. Litan, vice president of Research and Policy at the Kauffman Foundation, says:
“While some new companies will undoubtedly fail, high-growth firms must be started somehow, and the more quickly they are launched and in larger numbers, the faster both output and employment will grow.”
In order to promote awareness, startups are trying to reach out and tap into the traditional job seeker market. In fact, startup job fairs seem to be popping up everywhere, such as the upcoming one to be held in New York on April 9.
A new bill introduced by John F. Kerry and Richard Luger aims to help ease unemployment through growing the number of startups. The bill proposes to start a new class of visa specifically for foreign-born entrepreneurs who start their companies and find funding for their startups here.
To obtain the two-year Startup Visa, the entrepreneur has to raise $250,000 from investors in the U.S. At the end of the two years, if the company creates five full-time jobs, raises an additional $1 million of funding or generates $1 million revenues, the entrepreneur can become a permanent resident.
Australian born Derek Choy, 28, is one example of an immigrant entrepreneur. Choy started his company Incentalign, when the economy came crashing down in September 2008. The co-founder and vice president of products said that his company developed a certain type of technology that uses game theory to help companies better prioritize their and allocate their sales resources, materials and opportunities.
Listen to Choy’s tips for starting up a new company.