As part of the government drive to support innovation and business, it was revealed that only 130 entrepreneurs from outside the European Union secured immigration visas to launch businesses in the UK last year. In response David Cameron has vowed to reduce bureaucracy and announced the creation of an 'entrepreneur visa' to enable anyone with a great business idea and investment from a leading investor to set up in the UK.
The Home Office data also showed that applications for US visas from UK-based entrepreneurs keen to relocate across the Atlantic remained disappointingly high. Compared to the 130 UK applications, the US Citizenship and Immigration Services processed 1,265 applications with the UK the second highest talent contributor behind India. The US entrepreneur visa allows entry to the US to entrepreneurs prepared to invest $1m in their venture and who create 10 US-based jobs. The US data also reveals that 25% of US venture backed companies in the last 15 years were founded by immigrants.
With David Cameron currently on a high profile trade visit to China, soon after similar recent trip to India, it is a clear indication that Britain will seek to encourage foreign nationals from India, China and elsewhere to act as a catalyst for economic recovery. Before setting off on the trade mission the Prime Minister lambasted the previous visa scheme set up under Gordon Brown, branding it "a total failure". The Home Office research also revealed that many professionals entering Britain from countries such as India under the previous 'highly skilled' category were in fact doing unskilled work.
In a speech to business leaders this week David Cameron encouraged foreign entrepreneurs to give the UK a chance, declaring "we want you; we'll make it easy for you; we'll put out the red carpet for you. With our new Entrepreneur Visa we want the whole world to know that Britain wants to become the home of enterprise and the land of opportunity".
The emphasis of the government announcement is designed to allay concerns from business leaders over a planned cap on non-EU immigration that comes into effect next year. Businesses say a temporary limit already in force is preventing them from bringing in staff but Mr Cameron has been quick to allay fears that the new limits would "impede" firms from recruiting the best talent from around the world.
What remains to be seen is what impact foreign entrepreneurs arriving in the UK will have on innovation and opportunity for home-grown talent. The government has a balancing act to achieve between healthy competition and stifling local entrepreneurial talent. With job creation top of the government's agenda it appears vital that the UK attracts the best foreign talent whilst at the same government needs to further support local innovation and technology in a bid to slow the brain-drain from the UK to the US.
