[Congressional Record Volume 159, Number 24 (Thursday, February 14, 2013)]
[Senate]
[Pages S736-S737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                        Global Battle For Talent

  Mr. President, I am thankful for the opportunity to be on the Senate 
floor today to continue to tell my colleagues about the issues of 
entrepreneurship and the global battle for talent, the opportunity to 
start businesses, and the challenges we face from other countries in 
competing in this global economy.
  From our Nation's earliest days, entrepreneurs have been the driving 
force behind U.S. economic growth and expansion. Yet the state of 
entrepreneurship in America is not as strong as it once was. In today's 
global economy, an entrepreneur has more choices than ever about where 
to start his or her business.
  Over the last 2 years, at least seven other countries have taken 
action to better support and attract entrepreneurs. In the 2-plus years 
I have been a member of the Senate, seven countries have changed their 
policies, their laws, and their regulations to be attractive to 
entrepreneurs, while we have not. This map shows those countries--
Russia, Singapore, Australia, Brazil, Chile, Canada, and the United 
Kingdom.
  I recently shared what Canada was doing to attract more 
entrepreneurs, and today I will share what is happening in the United 
Kingdom and explain why it is in our country's best interests to act 
quickly to retain highly skilled and entrepreneurial immigrants.
  Much like the United States, the UK had a range of visa categories 
for immigrants with varying skills and financial resources. But in 
2011, the UK Government made changes to simplify their visa rules in 
order to attract more talented entrepreneurs to their country. The UK 
recently created an entirely new type of visa for what they call 
``prospective entrepreneurs.'' These individuals are allowed to enter 
the UK for a set period of time to secure funding and start the process 
of setting up their businesses before they begin the traditional visa 
process. Raising capital can be one of the more challenging aspects of 
starting a new business, and this visa gives entrepreneurs a running 
start.
  The UK has also changed its top visa category, tier 1, to be 
restricted to entrepreneurs, investors, and the exceptionally talented. 
Those entrepreneurs falling within the tier 1 category must have set up 
or taken over a British business. The initial investment in their 
companies can be as little as 50,000 pounds, given that certain 
criteria are met. By lowering the initial capital investment required, 
entrepreneurs can get set up and running their businesses sooner rather 
than just raising more money.
  The UK has also revamped its Global Entrepreneurs Programme, which 
works to encourage innovative technology businesses to relocate to the 
UK. The program is aimed specifically at foreign entrepreneurs and 
offers a range of support to startups, from help in raising capital to 
providing mentors to offering networking opportunities with successful 
entrepreneurs. This program has helped more than 200 entrepreneurs and 
early-stage technology companies get established in the United Kingdom 
so far.
  You can see from this poster, Sir Richard Branson is helping promote 
this program because he knows firsthand the value of entrepreneurship. 
Many people today know Richard Branson as the creator of Virgin 
Airways, but he got his start at the young age of 16 by successfully 
launching a new student magazine. Now, 45 years later, his investment 
group employs approximately 50,000 people in 34 countries and its 
revenues in 2011 were around $21 billion.
  The UK's Immigration Minister said this about the country's recent 
efforts to attract more startup companies:

       Entrepreneurs and investors can play a major part in our 
     economic recovery, and I want to do everything I can to 
     ensure that Britain remains an attractive destination for 
     them. Last year we issued far too few visas to those who wish 
     to set up a business and invest in the UK--I intend to change 
     that.

  That was the Immigration Minister of the UK speaking. And this is our 
competition.
  We in Congress and the administration need to take notice. Other 
countries are aggressively courting entrepreneurs and those talented 
individuals will not sit on the sideline with their good ideas. They 
will go to the country that welcomes them and set up shop.
  A story I heard while visiting Silicon Valley recently illustrates 
this point. A large company that was just a few years ago a startup 
itself told me they had plans to hire 68 highly skilled immigrants but 
could not get visas for them to work in the United States.
  Rather than letting that talent go, the company hired them but in a 
different country. While it is troubling to me that we lost 68 jobs 
because there was no visa for them--we lost those jobs here in the 
United States and the visa program didn't work to attract and retain 
them--what troubles me even more than that is we know that someone--and 
maybe several of those 68 people hired--will go on to start a business 
that may result in significant job creation. Those are jobs that could 
have been created in the United States but now will be created in 
another country.
  There is a global battle for entrepreneurial talent, and the United 
States is falling behind. When we lose those entrepreneurs and highly 
skilled immigrants, we lose the jobs they create. This is certainly 
about the entrepreneurs, but it is more about the folks whom they will 
employ--folks here in the United States who are in desperate need of 
employment.
  The legislation that led to changes in the UK's visa law was drafted 
by Cambridge venture capitalist Alex van Someren. Alex is aware that 
here in America there have been recent efforts to attract entrepreneurs 
to our country, but the barriers to entry are still higher than in the 
United Kingdom. Alex said this in a recent interview he had with 
Business Weekly: ``We have beaten the American effort and that is 
fabulous news for UK entrepreneurship.''
  This might be good news for the United Kingdom, but it is not good 
news for Americans. I want to make sure that the first choice for 
entrepreneurs looking to start a company remains the United States of 
America, and Congress has the responsibility to make certain that 
happens.
  In a bipartisan effort, Senator Warner, Senator Coons, Senator Blunt, 
and others introduced the Startup Act 3.0 yesterday and an identical 
bill is being introduced today in the U.S. House of Representatives. 
Startup Act 3.0 makes changes to the Federal regulatory process to 
lessen government

[[Page S737]]

burdens on job creators, modifies the Tax Code to encourage investment 
in new businesses, seeks to accelerate the commercialization of 
university federally funded research that can lead to new ventures and, 
importantly, provides new opportunities for highly educated and 
entrepreneurial immigrants to stay in the United States where their 
talents and new ideas can fuel economic growth and, most importantly, 
create American jobs.
  Startup Act 3.0 creates an entrepreneur's visa for foreign-born 
entrepreneurs currently in the United States. Those with a good idea, 
capital, and willingness to hire Americans would be able to stay in the 
United States and grow their businesses.
  In many instances, foreign-born entrepreneurs, here legally, have an 
idea and want to begin a company that will employ Americans but are 
told their visa does not allow them to remain in the United States. 
With few ways to stay, these entrepreneurs are forced to move and to 
take their business with them where they will create jobs in other 
countries.
  I want to make certain America is the best place for entrepreneurs 
who want to build in America and hire Americans. Passing Startup Act 
3.0 will help make that happen by creating new ways for immigrants 
legally in the United States to open a business and to employ our 
fellow citizens.
  People come from all around the world to the United States. They come 
to study and they come to work. They come to live in a place where they 
can have the freedom to pursue their dreams. The entrepreneur's visa 
would allow these risk-takers to stay here and operate their 
businesses.
  Each immigrant entrepreneur would be required to create jobs for 
Americans. If the business was not successful and the jobs were not 
created, the immigrant would have to go back to his or her own home 
country.
  While some immigrant entrepreneurs would fail, others would follow a 
path worn by many who came before them and succeeded. Entrepreneurial 
immigrants have long contributed to the strength of our economy by 
starting companies and creating jobs. I can think of the Russian 
immigrants, for example, who are entrepreneurs in a sense who came to 
Kansas and brought hard red winter wheat with them. What a true 
entrepreneur--an immigrant entrepreneur--who changed the face of our 
State.
  On the current Fortune 500 companies, more than 40 percent were 
founded by a first- or second-generation American. Not only are these 
immigrants entrepreneurial, but they are also disproportionately 
innovative. Foreign nationals residing in the United States were named 
as investors or coinvestors in a quarter of all patent applications 
filed in the United States in 2006.
  Today, one of every ten Americans employed in a privately owned U.S. 
company works for an immigrant-owned firm. While we work in the United 
States to continue educating our children with the skills for a 21st 
century economy and training the next generation of great American 
entrepreneurs, we also need to welcome those who want to create a 
business here in the United States and employ our citizens.
  I believe that 80 percent of my colleagues here would agree with the 
provisions of Startup Act 3.0. They understand these are important 
issues for the economic growth and new job creation for Americans. I 
urge my colleagues to pass what we can agree to now and keep working to 
find common ground on issues that still divide us. The longer we wait, 
the farther we fall behind in this global competition for the most 
entrepreneurial immigrants.
  While the United Kingdom and other countries are creating new 
opportunities for entrepreneurs, the United States remains the land of 
opportunity and birthplace of the American dream. We need to pass 
Startup Act 3.0 so foreign entrepreneurs can strengthen our economy and 
so American business men and women can pursue their dreams here in the 
United States.
  Millions of our citizens, unfortunately, remain out of work. Many are 
underemployed. Our economy is barely growing. We can jump-start the 
American economy through Startup Act 3.0, and the skills we need to 
pursue the American dream can be here in the United States and we can 
strengthen our economy.
  Madam President, I suggest the absence of a quorum, and I yield the 
floor.
  The PRESIDING OFFICER (Ms. Heitkamp). Without objection, it is so 
ordered.
  The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  The PRESIDING OFFICER (Mr. King). The Senator from Maryland.
  Mr. CARDIN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. CARDIN. Mr. President, I ask unanimous consent that I be 
permitted to enter into a colloquy with my colleague from Maryland, 
Senator Mikulski.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The remarks of Mr. Cardin and Ms. Mikulski are printed in today's 
Record under ``Morning Business.'')