Here’s a timely reminder of the benefits that immigrants bring to startups: 39% of Britain’s 100 fastest-growing companies have a foreign-born founder.
That’s according to new research the Entrepreneurs Network, a think tank based in London.
The findings show “the critical contribution” that international talent makes to the UK, the report’s authors said.
Undoubtedly, they have an outsized impact on the country’s startups. Immigrants comprise an estimated 14.8% of Britain’s total population, yet they’ve founded over one-third of its fastest-growing businesses.
The new data echoes prior research from across the world. Studies show that most billion-dollar startups in the US were founded by immigrants. Europe’s list of unicorns with a foreign-born founder is also growing.
Despite these contributions, hostile rhetoric towards immigrants has increased in recent years. Policy changes have created another set of problems for foreign-born talent.
British universities say international students have been deterred from studying in the country, while companies have withdrawn job offers to foreign graduates because of new visa rules. Startup founders have also raised concerns about restrictions on overseas talent.
A new founder magnet?
The Entrepreneurs Network wants Britain’s new government to ease the barriers to entry. The think tank has the following recommendations:
- Reform eligibility thresholds to help startups and high-growth businesses access talent
- Harness the immigration salary list to buttress the government’s industrial priorities
- Negotiate youth mobility schemes with the EU and the US
- Lower visa fees for high-skilled immigrants in line with international competitors
- Expand the “High Potential Individual” visa to more universities
- Build a specialised task force to recruit international talent
- Grant advanced STEM students indefinite leave to remain upon graduation
- Introduce the world’s first “Global Talent Exam” to actively recruit the world’s brightest individuals
According to The Entrepreneurs Network, these changes could become a magnet to innovation.
“People coming into our country to work are a huge force for good, and as our research shows once again, foreign talent is helping to build some of Britain’s most exciting and lucrative companies,” said Eamonn Ives, the think tank’s research director.
“We need to ensure our immigration system recognises their incredible contribution, and doesn’t needlessly throw up barriers to those who want to make our economy stronger and more dynamic.”