Indians founded one-fourth foreign IT firms in U.S.
By siliconindia   |   Monday, 16 February 2009, 19:01 IST   |    9 Comments
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Indians founded one-fourth foreign IT firms in U.S.
New York: Indian entrepreneurs have made the U.S. their home to carry businesses in a disciplined and profitable way and are presently making valuable contribution to the U.S. economy especially in terms of creating jobs. A new study shows that every fourth engineering and technology company in the U.S. has an immigrant among its founders. Further, India tops among the technology and engineering companies started by immigrants in the U.S. between 1995 and 2005. Almost 26 percent of all immigrant-founded companies in last 10 years were founded by Indian immigrants, according to a study by professors in Duke University and the University of California. The study on 'America's New Immigrant Entrepreneurs' shows that there was at least one immigrant founder in 25.3 percent of all engineering and technology companies established in the U.S. between 1995 and 2005 inclusive. These entities generated over 52 billion dollars in 2005 sales, while creating just under 4, 50,000 jobs as of 2005. Indian immigrants are followed by those from the UK, China and Taiwan. "Immigrants from the UK, China, and Taiwan contributed to 7.1 percent, 6.9 percent and 5.8 percent of all immigrant- founded businesses, respectively," the report said. According to a new U.S. congress proposal the firms who receive the government's bailout package, are restricted from hiring H1-B visaholders, if they are to replace Americans. The latest measure, which is part of the American Recovery and Reinvestment Act, also known as stimulus bill, could adversely impact Indians as they make up a major chunk of the H1-B visaholders. Of more than 1, 60, 000 H1-B visa applications for the fiscal 2009, one lakh are estimated to be Indians. Currently, the U.S. has capped the annual H1-B visa quota at 65,000, which was reduced from 1, 95, 000 two years ago. Estimates suggest that about 40,000-45,000 Indians are getting these skilled worker visas currently, down from more than one lakh a year previously. As per the report, 46 percent of Indian immigrants founded software firms, while 44 percent started companies in innovation or manufacturing-related services. Interestingly, Indians mostly found technology and engineering firms in California.