Startup visas have gained more popularity than ever. They present a valuable opportunity for entrepreneurs to tap into international markets and promote global mobility. However, there are a number of fundamental issues with startup visas. 

As a former migrant entrepreneur and currently a consultant specializing in global business mobility, I have observed certain aspects of startup visas around the world. This does not concern a specific issue and presents a balanced perspective. 

The aim of this article is to highlight some of these structural flaws with startup visas. Ultimately, my goal is to help entrepreneurs and prospective clients have a thorough understanding of their options. 

So, let’s explore some of these issues. 

Immigration and entrepreneurship = incompatible?

As an immigrant tech entrepreneur, a key observation of mine was that immigration and entrepreneurship are simply two concepts that are fundamentally incompatible. 

By immigration, I am referring to an entrepreneur being subjected to business milestones as means of immigration compliance. 

One key principle in entrepreneurship is flexibility. Being a founder demands an entrepreneur and their business to adapt and pivot, hence the concept of flexibility. 

The issue with startup visas is that they define a set number of milestones, intended to be applicable to all founders applying under that specific visa route. For example, creation of a certain number of jobs. 

Every business, especially at startup stage, has different dynamics and interpretation of growth factors. Therefore, assigning a specific “progress criteria” to every business has a structural flaw. 

Nevertheless, it is imperative to highlight that the “incompatibility” in question solely refers to immigration compliance. Otherwise, it is an undisputed fact that immigrants are behind some of the major businesses that we observe today. 

In a previous article, I discussed the importance of immigrant entrepreneurs in the UK. I highlighted that immigrants are behind 39% of the UK’s top 100 fastest growing businesses in the UK. 

Risk imbalance

Immigrating to another country is a life-changing decision. It involves risk and spending our most important resources: time and money. 

The issue with startup visas is that they are designed with the idea of the host country benefiting from the entrepreneurs’ contributions. 

Theoretically, this is not incorrect. However, policies ought to be designed based on a win-win principle. Accordingly, the risk also ought to be divided between the entrepreneurs and the host countries. 

Nevertheless, this is not always the case. One prime example is the UK’s Innovator Founder Visa. 

Under this visa, founders can apply for settlement after 3 years. They have to meet specified criteria. The most popular are:

1. Investing a minimum of £50,000
2. The number of customers has doubled over the past three years, exceeding the industry average for similar businesses.

Founders have to obtain a second endorsement that confirms meeting the above criteria. 

However, this begs the question of what if the number of customers does not double, at least within three years?

In such scenarios, founders have invested three years of their time and money, only to have to potentially return to their home countries. 

Visa timeframes

Businesses take time to grow and reach growth/maturity. The timeline is different for each business. One may take less than a year, while another may take over three years.

Some visa schemes, such as the Netherlands, have an extremely short timeframe. In the case of the Netherlands, only 12 months. 

Apart from the added pressure placed on entrepreneurs, such timeframes are simply insufficient for an entrepreneur to grow their venture. 

“Innovation”

Lastly, and perhaps most importantly, is the “innovation” factor.

Several startup visa programs, such as the UK, Holland and Ireland, require innovative business proposals. 

Again, this is theoretically correct. Policymakers are seeking to attract high-potential business ventures / applicants. 

However, the famous phrase that “the devil is in the details” comes to mind with respect to innovation. 

Innovation, from a commercial perspective, may be interpreted in numerous ways. This raises the question of what deems a business innovative? 

This is often not strictly and clearly defined, and determining innovation lies with the decision-makers. 

The issue is that such a requirement results in an arbitrary interpretation of innovation, where many applicants will consequently lose visa prospects. 

As examples, the Netherlands, despite its short visa timeframe, has a far more defined and comprehensive definition of innovation than the UK.

Startup visas are theoretically great initiatives, but…..

Startup visas present valuable opportunities for international entrepreneurs. However, as discussed above, they present several key flaws. 

It is imperative that entrepreneurs explore their global business mobility options carefully and in a balanced manner. As such, understanding these flaws is crucial. 

Global business mobility assistance 

I work with migrant entrepreneurs and help them explore their options, in addition to a range of other business services. 

Contact me today to explore your options.

About | My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business under the endorsement of Newcastle University. I grew my business to over 30 UK cities, and a team of four, and also obtained my Indefinite Leave to Remain (Settlement) in the UK. I now help other entrepreneurs, such as myself, with their businesses.