Savvy entrepreneurs often strive to find the most talented, qualified individuals to join their team. Because many start-up businesses have limited capital and have a need to conserve financial resources, entrepreneurs also may look for the most qualified individuals who are willing to work for an affordable wage. While some entrepreneurs will hire American workers to fill their positions, many are interested in hiring foreigners to fill at least some of their openings.
However, entrepreneurship visas are difficult to obtain, and this is viewed by some entrepreneurs as a detriment. Loosening visa restrictions may be beneficial to entrepreneurs in many ways, but it also can have negative consequences on the economy as a whole.
The Benefits of Loosening Visa Restrictions
The most obvious benefit associated with loosening visa restrictions relates to the increased ability of entrepreneurs to hire the most qualified candidates for the job regardless of their nationality. In addition, because many green card workers are willing to work for a more affordable wage, the business owners can keep overhead low. This can ultimately help these start-ups to grow and thrive in their early years.
The Downsides Associated With Loosening Restrictions
There are a number of downsides associated with loosening visa restrictions as well. When foreigners enter the country and work for a lower wage, it means that domestic workers may miss out on great job opportunities. Some may be forced to accept a lower rate, and others may struggle to find a job in their field. Ultimately, this can drive down the cost of labor.
While this can be beneficial for businesses, it can result in increased unemployed, personal financial struggle, decreased consumer confidence and other impacts that can have a negative effect on the economy on a larger scale. While the businesses initially would benefit from having access to skilled workers at a lower rate, the negative impact on the economy may also eventually have a negative impact on the business directly. For example, when consumer confidence declines, the business's sales may also drop.
With significant pros and cons associated with loosening the restrictions in place on entrepreneurship visas, it may be difficult to determine what the best course of action is. If changes do occur with the restrictions, it is likely that the restrictions will only be loosened moderately. This will result in the least amount of negative impact on the economy while still benefiting businesses.
Jonah Engler is a financial expert from NYC.