31 Oct 2024

The outsized role of foreign-born technopreneurs in the startup economy

Being part of the South African global diaspora, and finally landing in the UK, I am personally fascinated by the outsized role that foreign-born technopreneurs play in startup economies all over the world. I  prefer to think of them as global citizens rather than the politically-charged word “immigrants” as they are usually well educated, mobile, and understand  the universal language of the startup world.

Some 39% of the UK’s top 100 fastest-growing companies have a founder born outside of Britain, according to research from the Entrepreneurs Network (despite only 14.5% of the population being foreign-born). The U.S., Italy, France, Canada, India, and Germany are among the most common nationalities represented in these top 100.

In the US, 55% of unicorns have at least one foreign-born founder. Some 25% of unicorns have a founder who first came to the US as an international student. Further, 65% of the top AI companies in the U.S. have foreign-born founders.

It’s worth noting that immigrants from 57 different countries have founded billion-dollar startups in the U.S., demonstrating the wide global diversity of foreign-born entrepreneurs.

In Germany, 44% of all new businesses are established by people with non-German heritage.

Estonia serves as a prime example of how embracing international talent can drive an entire sector. With four times more startups than any other country in Europe, Estonia has produced 10 unicorns, including Skype, Playtech, Wise, and Bolt. Per capita, it stands as the European leader in unicorn production, boasting 4.1 unicorns per million inhabitants, outpacing Luxembourg’s 3.1, the U.K.’s 1.6, and Germany’s 0.6. Estonia’s tech sector growth is largely driven by foreign-born entrepreneurs, with 32% of Estonia’s founders being of foreign origin.

We see similar trends in emerging markets. Some 32% of the top unicorn founders in emerging markets are foreign-born or 2nd generation, many of whom are examples of South-South migration.

I believe that the act of moving countries itself reflects a willingness to take risks and adapt to new environments, and have tried to list some of the reasons that foreign-born technopreneurs are successful, as follows:

  • Resilience and perseverance: The challenges of moving countries and adapting to a new country foster resilience and perseverance – often having to overcome language barriers, cultural differences, and other obstacles, which builds mental toughness
  • Empathy and diversity awareness: Having experienced being an outsider, foreign-born leaders tend to have more empathy towards others and a broader perspective on diversity. They are often more accepting of diverse teams and viewpoints
  • Innovation and risk-taking: The act of moving countries itself reflects a willingness to take risks. This risk-taking mindset often translates into more innovative approaches in business
  • Global perspective: Foreign-born leaders bring diverse cultural backgrounds and international experiences, which can lead to a more global outlook on business opportunities and challenges
  • Adaptability: The experience of adjusting to a new environment makes foreign-born leaders highly adaptable, a crucial skill in today’s fast-changing business world
  • Strong work ethic: Many foreign-born leaders describe working harder to overcome barriers and prove themselves, which instils a strong work ethic
  • Appreciation for opportunities: Having experienced different systems, foreign-born leaders often have a deep appreciation for the opportunities in their new country, driving them to make the most of these chances
  • Problem-solving skills: Navigating complex immigration processes and settling in a new country hones problem-solving abilities that translate well to business challenges
  • Diverse skill sets: Foreign-born leaders often bring unique combinations of skills and educational backgrounds from their home countries, contributing to innovative thinking

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