Shifting away from the EB-5 Program
In recent news, our government’s EB-5 Immigrant Investor Program (or Employment-Based Immigration: Fifth Preference EB-5) as gained even more traction and appeal.
So what is this magic program? Well, for a capital investment and proof of substantial job creation in the US, the US government will grant the investor and his/her family green cards which they can later trade up to permanent resident status.
As a businesswomen who used to market these cool opportunities, I have had a look into the other side of this seemingly great program. While many see it as a great way to get investor funds, they tend to overlook not only the length of time it can take to secure these funds (upwards of a year) and the job creation requirement (at least 10 permanent jobs – not to include the construction or ancillary workers).
While shopping/marketing a few Texas based projects around China, here are the three main issues my company ran into and why we made the decision to shift focus from marketing EB-5 projects.
3 main issues I’ve run into abroad:
- The Chinese especially want sound investments. So if your project includes commercial building like schools, hospitals, or government buildings, they’re interested. Also, they have a regional focus and are looking to invest in Texas and Florida mainly for easy access to land and neighboring countries.
- The Chinese government is cracking down on how much currency can flow out of the country. I’ve been able to identify quite a few millionaires abroad, but the biggest concern is “How do I get the money out of China?” Some are turning to neighboring lands such as Hong Kong to filter money out while others are looking into what I call “tangible investments”. Many are buying artwork, boats, and even rare watches in an attempt to smuggle the funds out. This causes problems later in terms of paper work as the guarantor has to prove the legitimacy of the funds.
- This EB-5 program garners much interest outside of US in the following countries: Japan, Korea, Brazil, Mexico, and Spain. These countries are more willing to participate in the EB-5 program than most.
All in all, I support our government’s offering and hope more immigrant investors will participate. In the same vein, we should be aware of the affects to the home country. From a human capital management perspective, a home country will have more to worry about than just brain drain.
The new phenomenon that this can of worms will expose is the millionaire drain. And I don’t think many governments are too keen on their millionaires gaining residency in another country.
Etsy is trying on second-hand fashion with purchase of Depop
(BUSINESS NEWS) With the younger generation moving away from fast fashion, it makes sense that Etsy has acquired one of the most popular Gen Z second hand apps.
Over the last few years, sustainable shopping has been a bullet point in the large-scale topic of the environment. Burning through clothing by disposing of old clothing and shopping from places specializing in “fast fashion” is causing damage to the earth.
According to the UN Environment Programme, the fashion industry is the second largest consumer of water and is responsible for 8-10% of global carbon emissions – more than all international flights and maritime shipping combined.
As a result, shopping second hand has become more popular, as opposed to mass-produced fast fashion. Online platforms like Poshmark and ThredUp have grown tremendously over the last 3 to 5 years.
Etsy paid $1.6 billion to acquire the UK-founded company, which has attracted a younger, Gen Z-based audience due to its social media use and messaging on shopping in an ethical and environmentally-friendly fashion.
Etsy CEO Josh Silverman said the company was “thrilled” to be adding what it believes to be the “resale home for Gen Z consumers” to Etsy. Depop has approximately 30 million registered users spanning 150 countries.
“Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale,” Silverman said in a statement Wednesday.
“We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous ‘house of brands’ portfolio of individually distinct, and very special, ecommerce brands.”
Due to the COVID-related e-commerce boom, shares of Etsy have more than doubled in the last year. The stock was up about 6.7% Wednesday afternoon.
According to data from Crunchbase, Depop had raised a total of $105.6 million from investors including General Atlantic, Creandum, Balderton Capital, Octopus Ventures and Klarna CEO and co-founder Sebastian Siemiatkowski, prior to their agreement with Etsy.
With fashion being so cyclical, it may be safe to say that second hand will never fully go out of style.
What are your thoughts on resale apps being the answer to fast fashion woes? Let us know in the comments.
As masks become optional, businesses find themselves stuck in the middle
(BUSINESS NEWS) One liquor store’s decision on mask policy following changes in local laws has become a recurring story throughout the nation.
The American mask debate has comprised a whirlwind of clashing political ideologies, legal dilemmas, and personal agendas, with businesses placed directly in the middle of the storm. As the pandemic continues to run its course, a disparity in state mandates and legislation is only serving to increase the strain on these establishments.
With increased access to vaccines and several states rolling back their COVID guidance, the option to wear—or not wear—masks is becoming more discretionary, with businesses often having the final say in whether or not they expect masks to be used on their premises. One such business, a liquor store, posted a notice regarding their staff’s decision to continue wearing masks:
“In accordance with Johnson County mandates: Masks are now optional. Please do not berate, verbally assault, or otherwise attack the staff over their choice to continue wearing masks.”
The notice went on to say, “It is painfully depressing we have to make this request.”
That last line epitomizes many business owners’ stances. Places across the country have started allowing customers to discard their masks with proof of vaccination, but if employees choose to keep their masks for the time being, it’s difficult for clients not to view it as a kind of political statement—despite their decisions often being corroborated by local laws.
And, as long as businesses continue to operate within the confines of those laws, their decisions should be free from public scrutiny.
Sadly, that’s not what’s happening as evidenced by the notice posted by the liquor store in Johnson County. The same disparity that allows for some freedom despite COVID still being present in many Americans’ lives often leaves those who choose not to wear masks to conclude that those who do wear them are being judgmental or unnecessarily cautious.
Those judgements work in reverse as well, with businesses who allow their employees to work maskless facing criticism from masked clients. It seems that the freedom to choose—something for which people strongly advocated throughout the pandemic—continues to cause separation.
As businesses change or adapt their regulations to fit state mandates and employee (and customer) concerns, everyone would do well to remember that the decisions these establishments make are usually meant to affect some kind of positive work environment—not to welcome harassment and abuse.
You should apply to be on a board – why and how
(BUSINESS NEWS) What do you need to think about and explore if you want to apply for a Board of Directors? Here’s a quick rundown of what, why, and when.
What does a Board of Directors do? Investopedia explains “A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors.”
It is time to have a diverse representation of thoughts, values and insights from intelligently minded people that can give you the intel you need to move forward – as they don’t have quite the same vested interests as you.
We have become the nation that works like a machine. Day in and day out we are consumed by our work (and have easy access to it with our smartphones). We do volunteer and participate in extra-curricular activities, but it’s possible that many of us have never understood or considered joining a Board of Directors. There’s a new wave of Gen Xers and Millennials that have plenty of years of life and work experience + insights that this might be the time to resurrect (or invigorate) interest.
Harvard Business Review shared a great article about identifying the FIVE key areas you would want to consider growing your knowledge if you want to join a board:
1. Financial – You need to be able to speak in numbers.
2. Strategic – You want to be able to speak to how to be strategic even if you know the numbers.
3. Relational – This is where communication is key – understanding what you want to share with others and what they are sharing with you. This is very different than being on the Operational side of things.
4. Role – You must be able to be clear and add value in your time allotted – and know where you especially add value from your skills, experiences and strengths.
5. Cultural – You must contribute the feeling that Executives can come forward to seek advice even if things aren’t going well and create that culture of collaboration.
As Charlotte Valeur, a Danish-born former investment banker who has chaired three international companies and now leads the UK’s Institute of Directors, says, “We need to help new participants from under-represented groups to develop the confidence of working on boards and to come to know that” – while boardroom capital does take effort to build – “this is not rocket science.”
NOW! The time is now for all of us to get involved in helping to create a brighter future for organizations and businesses that we care about (including if they are our own business – you may want to create a Board of Directors).
The Harvard Business Review gave great explanations of the need to diversify those that have been on the Boards to continue to strive to better represent our population as a whole. Are you ready to take on this challenge? We need you.
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