Douglas Olsen
International students seeking employment in the United States face several challenges, including visa requirements and immigration status. While there are opportunities for international students to work in startups, there are risks and complexities to consider. Startups may be less likely to hire international students due to the uncertainty of their immigration status and the potential lack of resources to navigate the process. Additionally, startups have a higher failure rate, with about 20% failing within the first year and 50% by the end of their fifth year, according to the US Bureau of Labor Statistics. On the other hand, well-established companies in industries like higher education, nonprofit research, consulting, IT, and staffing, and Big Tech are known to hire a significant number of international students. These larger companies are more accustomed to sponsoring foreign workers and have processes in place to facilitate employment. International students should carefully evaluate the risks and consider their unique circumstances before deciding whether to pursue startup jobs or focus on more established companies.
| Characteristics | Values |
|---|---|
| Risk | Startups are inherently riskier than established companies. International students may not have the resources and advantages to accept that risk. |
| Immigration Status | Some employers may be uncertain about hiring international students due to their immigration status. |
| Human Resources | Many startups lack HR departments to help international students navigate government processes. |
| Visa Requirements | International students may need specific visas or work authorizations to work in certain countries, such as the US. |
| Sponsorship | Large companies are more accustomed to sponsoring foreign workers and have processes in place to facilitate the transition. |
| Business Failure | Startups have a higher failure rate, with 20% failing in the first year and 50% by the fifth year, according to US data. |
| Target Companies | International students should research and target companies with a track record of hiring international students. |
| Industry Trends | Industries like tech, consulting/IT/staffing, and financial services actively recruit international students, especially those with STEM backgrounds. |
| Work Authorization | Employers must confirm work authorization for international students before employment to prevent liability issues. |
| Curricular Practical Training (CPT) | CPT allows international students to gain practical training in their field after one year of full-time study. |
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What You'll Learn
- Startups are inherently riskier than established companies
- Large companies are more used to sponsoring foreign workers
- Startups are vulnerable to going under
- International students can use Interstride to find companies that sponsor international students
- International students can launch their own startups
Startups are inherently riskier than established companies
Firstly, startups are more vulnerable to failure. According to the US Bureau of Labor Statistics, about 20% of US small businesses fail within the first year, and by the end of the fifth year, half have faltered. This means that there is a significant chance that a newly hired employee could lose their job in a short period. For international students, this could have serious implications for their immigration status and ability to remain in the country.
Additionally, many startups do not have the same resources as larger companies when it comes to sponsoring foreign workers. They may not have human resources departments dedicated to helping employees navigate the complex process of dealing with government immigration procedures. This means that international students may have to navigate these challenges on their own, which can be difficult and time-consuming.
Furthermore, startups often require employees to be adaptable and wear multiple hats, which can be demanding and may not be suitable for everyone. The workload can be unpredictable, and employees may need to work long hours, especially during the initial stages of the company's growth. This could impact an international student's ability to focus on their studies or maintain their visa status, which typically requires a certain number of credits or full-time student status.
However, it is important to note that there are also benefits to joining a startup. Startups can provide valuable opportunities for growth, innovation, and skill development. They often offer a dynamic and collaborative work environment, fostering a sense of ownership and impact among employees. Additionally, some startups may be more willing to hire international students due to their unique perspectives and diverse skill sets.
In conclusion, while startups offer exciting possibilities, they also come with inherent risks, especially for international students. It is crucial for prospective employees to carefully assess these risks, consider their own circumstances, and make informed decisions before joining a startup. Established companies may provide more stability and resources, but that should not deter international students from exploring all options and weighing the benefits and drawbacks of each opportunity.
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Large companies are more used to sponsoring foreign workers
For international students seeking job opportunities, it is important to consider the advantages that large companies offer in terms of sponsoring foreign workers. While startups might be an option, they come with inherent risks, as highlighted by the high failure rate of small businesses in the US. On the other hand, large companies are more accustomed to sponsoring foreign employees and possess the necessary resources to facilitate a smoother transition.
Large companies often have dedicated departments with in-house lawyers who are well-versed in navigating the complex US immigration laws and procedures. This expertise ensures that they are more likely to consider foreign talent for job openings. They are also more likely to have the necessary processes in place to make the employment transition as seamless as possible, providing valuable support for foreign workers navigating the intricacies of the US immigration system.
The H-1B visa program, which is commonly used to hire skilled foreign workers, has been utilised by several large companies. Amazon, Infosys, Cognizant, Google, and Tata Consultancy Services are among the top petitioning companies with the highest number of approved H-1B visas in recent years. These companies have consistently hired and sponsored foreign workers, particularly in the technology and IT services sectors, to address talent shortages and foster business growth.
Additionally, large companies often have a stronger financial standing, enabling them to invest in sponsoring foreign workers and providing competitive salaries. They may also offer a wider range of job opportunities, allowing international students to explore various career paths within the organisation. With their established presence and extensive resources, large companies can provide a sense of stability and a more extensive support system for foreign employees.
While large companies have their advantages, it is essential for international students to conduct thorough research and evaluate their options. Considering factors such as visa requirements, company culture, and long-term career goals can help international students make informed decisions about their job search strategy.
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Startups are vulnerable to going under
International students may want to think twice before making startups a part of their job search strategy. While there are success stories of international students founding startups, it is inherently riskier than going with an established company. This is because startups are vulnerable to going under. According to data from the US Bureau of Labor Statistics, about 20% of US small businesses fail within the first year, 50% do not make it past the fifth year, and only around a third survive after 10 years.
There are several reasons why startups are vulnerable to failure. One of the biggest challenges to the survival of small businesses and startups is the cost of health insurance. Other major reasons for startup failures include cash flow problems, pricing and cost issues, user-unfriendly products, poor marketing, and product mistiming. Startups are also particularly vulnerable to fraud. A Harvard Business Review study found that participants tended to engage in more deceptive behaviour when dealing with a startup compared to a mature firm. This could be due to the reputation of startups as rule-breakers, as well as the perception of their employees as less experienced.
Additionally, international students may face challenges when seeking employment with startups due to their immigration status. Some employers may be uncertain about hiring international students, and startups may not have the resources or expertise to navigate sponsorship processes. Large companies, on the other hand, are more accustomed to sponsoring foreign workers and have processes in place to facilitate the transition.
However, it is important to note that there are also advantages to working for startups. For instance, they may offer more opportunities for growth and innovation than established companies. International students can evaluate the risks and employ a data-driven strategy when deciding whether to include startups in their job search. They can also seek guidance from platforms like Interstride, which offers tools to find career opportunities that match their visa requirements and experience level.
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International students can use Interstride to find companies that sponsor international students
While startups might not be the best option for international students due to the inherent risks involved, international students can use Interstride to find companies that sponsor international students. Interstride is a powerful platform that provides consistent, personalized support to international students and prospects. It offers a job search tool that allows students to search for jobs and internships tailored to international students, with key information such as visa sponsorship and work authorization requirements.
The Interstride platform offers various tools to help international students in their job search. The Jobs portal, for example, allows students to apply filters to their search to find current opportunities by visa type, experience level, industry, and employers that sponsor international students. The US Visa Insights page also enables students to identify companies that have historically sponsored international candidates.
Additionally, Interstride provides valuable resources and guides for employers seeking to sponsor international students, as well as information on work and immigration options for international students. International students can also use Interstride to develop a list of target companies and connect with alumni and professionals working in those companies.
By leveraging the features and resources provided by Interstride, international students can increase their chances of finding employment with companies that sponsor international students and navigate the complexities of the US immigration system.
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International students can launch their own startups
International students face several challenges when looking to work at startups, including visa issues, uncertainty about immigration status, and a lack of human resources support. However, international students can also launch their own startups, and they are in good company. A study found that nearly one-fourth of all American unicorns (startups valued at $1 billion or more) had a founder who first came to the U.S. as an international student. Notable examples include Elon Musk (Tesla/SpaceX), Noubar Afeyan (Moderna), John Collison and Patrick Collison (Stripe), Luis von Ahn (Duolingo), and Renaud Visage (Eventbrite).
International students on an F-1 visa can use Curricular Practice Training (CPT) or Optional Practical Training (OPT) to start their business in the U.S. Both allow student founders to work in their business for up to one year while they are still in school. It is important to note that OPT can also be used after graduation, whereas CPT cannot. For STEM students starting a STEM-related business, OPT can be extended by another two years. After OPT expires, students have 60 days to find alternative work authorizations or they will be forced to leave the country.
To continue working in the U.S. at their own company, international students will need a new work visa. Options include an O-1, H-1B, E-2, EB-1A, and TN. The EB-1A visa is ideal for qualifying international students from China and India, offering shorter wait times than the EB-2 NIW visa. The EB-1A does not grant immediate work authorization, but it starts the green card process. While an international student cannot "actively work" in the U.S. on an F-1 visa without proper work authorization, they can engage in passive work, including incorporating a U.S. company, applying for an EIN, establishing a mailing address, and applying for a business license. If an international student has a co-founder who is an American citizen or has work authorization, it is wise to have them handle the initial setup of the startup while the student works on obtaining proper work authorization.
Canadian requirements are generally more flexible regarding immigration for startups, providing a great alternative option for anyone looking to start or scale a business in North America. International students considering launching a startup should begin researching entrepreneur visa options while still in school and reach out to experienced immigration teams for guidance.
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Frequently asked questions
Startups are inherently riskier than established companies. They are vulnerable to going under: about 20% of US small businesses fail within the first year, 50% by the end of their fifth year, and only around a third survive after 10 years. Startups also might not have the human resources to help international students deal with the US government.
Industries that hire international students include higher education, nonprofit research, consulting, IT, staffing, financial services, and Big Tech. Tech companies tend to hire international students with a STEM background, especially in computer science or related fields.
Common types of Curricular Practical Training (CPT) opportunities for international students include internships, which can be full or part-time. CPT opportunities allow F-1 students to accept practical training in their academic field after one year of full-time study.
Some visa options for international students include the O-1, H-1B, and the International Entrepreneur Parole (IEP) Program. F-1 students can also work temporarily for one full year before or after graduation in a job related to their college major.
