Small entrepreneurs create big jobs for U.S.
Date: Wednesday , April 02, 2008
Barrack Obama won’t complain anymore that Indians are taking away the U.S. jobs. Here is a reason for all the Indians to be proud of their nation. A finding by one of America’s top consulting firms says that India’s small entrepreneurs are creating more jobs in the U.S.
Commissioned by the Federation of Indian Chambers of Commerce and Industry (FICCI) and conducted by Ernst & Young (E&Y), the study named ‘Report on Direct Investments in the U.S.’ says that in 2007 alone, Indian firms, which set up shop in the U.S. through greenfield units or acquisitions, created around 65,000 jobs.
Interestingly, these job makers are not well-established players in any segment. Among the 46 companies that went to the U.S. in 2007, 33 are categorized under SMEs and mid-caps. Of another 14 firms that invested in the U.S. until March this year, over 50 percent belong to the SME and mid-cap categories. According to FICCI officials, there are around 80 Indian SMEs and mid-caps in the U.S. and all of them are generating employment there.
“The SMEs alone have created over 35,000 jobs in the U.S. over the past year. It is also important to note that the Indian firms are acquiring and reviving companies that were either closed already or are facing closure,” says Dr Amit Mitra, Secretary General of FICCI.
Indians have much more to brag about and cheer up. India has invested three times more than what the U.S. has invested in India in the indirect investment segment.
The Indian SMEs put up a spectacular feat in the global M&A race that concluded in 2007, contributing to a strategically significant portion of them — of the 86 M&As, 33 were by the SMEs. The M&As were valued at $4.3 billion in 2005, crossed the $15 billion mark in 2006 and breached the $35 billion level in 2007, says the E&Y study.