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Challenges facing immigrant entrepreneurs

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Immigrants are still coming to the United States in search of the American dream. And though there’s no shortage of ideas or drive to start new businesses, they do have to overcome a multitude of challenges that American-born entrepreneurs don’t face. A restrictive and limited visa process, cultural barriers, a complex, foreign legal system and too much self-reliance can often hinder their growth.

Visa issues

Lori Chesser, an attorney who specializes in immigration law at the Davis Brown Law Firm, said there are many different routes immigrants can take to get work visas, but the system is full of flaws and is in need of reform. “People are fiddling with the edges, but they haven’t changed the meat,” she said.

Chesser explained that E-visas are available for those living in countries that the United States has a treaty with. But two of the world’s most rapidly developing economies – China and India – don’t have a treaty with the United States. “That’s where the newer money in the world is and we don’t have treaties with India or China,” she said.

For those who can’t apply for E-visas, Chesser said an H-1B visa is available. It’s a temporary work visa that allows employers to hire immigrants with degrees in professional, specialty occupations. But if the immigrant wants to start his or her own business, Chesser said, he or she must find an employer sponsor – something that isn’t always easy to find. Permanent E-B5 visas are even more difficult to obtain, she said. This visa requires a $1 million investment and 10 full-time jobs to be created in a two-year period, a very big risk that people aren’t often willing to take. “They have really limited options,” she said.

Additionally, Chesser said the United States keeps tightening visa approval rates, which she said is the wrong thing to do. “We need these people to create jobs,” she said.

Language and cultural barriers

When Willy Msiando and his family arrived in the United States as refugees from the Democratic Republic of the Congo in 2005, they were in an unfamiliar place and didn’t know the language. After the family was forced from their home in 2001, they spent several years in a refugee camp in Mozambique. However, the family had problems at the camp. “We were not sad to leave,” he said. “We needed to go to a place where we could live in peace.”

After arriving in Des Moines, Msiando said they originally received help from Lutheran Refugee Services, but that help ended after three months. “They said, OK, you can live on your own,” he said. “We were in a different country, with a different culture and language. We just hoped that God would help us.” Msiando said it was difficult to make adjustments; his family had just been sleeping in a tent in an African refugee camp and now they were in an apartment in Des Moines.

A short time later, Msiando met another refugee, who helped his family get better acquainted with living in America. She helped furnish their bare apartment, helped them get around and learn English. Msiando, who was a math teacher in the Congo, has now started his own church to offer the same kind of help and support to refugees. The church helps them figure out where to send their kids to school, how to apply for Medicaid and food stamps, and how to find jobs. The church also teaches them English. “We’re helping families become independent,” he said.

Difficulty navigating the system

Carlos Rios grew up in Peru and later received a law degree from the National University of San Marcos. He subsequently worked for the United Nations, helping with the rebuilding efforts in Mozambique. When he moved to America, he found a job at Catholic Charities, where he helped immigrants like himself better understand a new country.

A few years later, he started his own nonprofit that wasn’t associated with a single church or denomination. It helps connect immigrant business owners with resources and helps them get a better understanding of cultural differences. Rios teaches them about the tax system, the legal system and how to deal with contracts. “It’s a big process. It takes a lot of time,” he said.

Rios said there aren’t many state programs that give immigrants a step-by-step explanation of what is needed to get a business up and running. “There’s no one there to help navigate this complex system,” he said.

Rios is now setting up a mentorship program where successful business owners he’s helped now help new business owners. They share mistakes they’ve made, the kinds of licenses they needed to obtain and management skills, he said.

Too self-reliant

Tej Dhawan, principal of StartUp City and an immigrant from India, said that this growth can sometimes be hindered because immigrants are often hesitant to accept help from the mentors, peer groups and state resources that are available to them. “Those of us who came here for college were solo,” he said. “So when you start up a business, they don’t look for help.

“Self-reliance doesn’t let you grow as fast as you possibly could.”