According to the U.S. Chamber of Commerce, 5.5 million new business applications were filed in the United States in 2023. Small businesses now account for 99.9 percent of all U.S. firms, employ 45.9 percent of the workforce, and contribute approximately 43.5 percent of national gross domestic product (GDP). These numbers reflect the strong demand, opportunity, and support that exist for business owners in the U.S. market.
For E-2 visa holders, the landscape offers real potential. The visa allows nationals of treaty countries to invest in and manage a U.S. business. In return, the investor must ensure the business stays active, well-run, and compliant with U.S. laws. If the business becomes non-operational, fails to meet legal obligations, or shows signs of poor oversight, the visa is at risk. Success requires more than good intentions. It requires a clear understanding of the risks involved and a plan to manage them.
The sections below outline five business risks that E-2 entrepreneurs must monitor, with insight from firms experienced in managing operational, financial, and regulatory exposure.
1. Regulatory and Compliance Risk
E-2 businesses must meet all local, state, and federal requirements. This includes registering the business correctly, paying taxes, maintaining employment records, and holding proper licenses. According to global audit and advisory firm KPMG, compliance failures are a leading cause of penalties among small firms. The United States Citizenship and Immigration Services (USCIS) expects E-2 businesses to be lawfully operating at all times. Gaps in compliance can lead to questions about whether the business qualifies under visa terms. Regular legal reviews and organized documentation can help reduce this risk.
2. Financial Risk
The USCIS requires the investor to place capital at risk in an operating business. If the company cannot meet its financial obligations or maintain a reasonable level of stability, the investment may no longer qualify. KPMG recommends that small business owners track performance closely, forecast cash flow, and set controls for spending and debt. For E-2 investors, clear financial records are important not just for business health but also as evidence during visa renewals.
3. Operational Risk
Operational problems such as vendor delays, staffing shortages, or equipment failures can interfere with business continuity. Global strategy firm Boston Consulting Group encourages businesses to establish systems and processes that allow for quick recovery from interruptions. The USCIS evaluates whether the investor is directing and developing the business. A company with no plan for setbacks may be seen as unstable. E-2 visa holders should be able to demonstrate that they are involved and capable of managing disruptions.
4. Property and Safety Risk
Physical damage, accidents, or environmental hazards can disrupt operations and result in unexpected costs. U.S.-based insurance company Chubb advises business owners to conduct safety reviews and secure insurance that fits the nature of their work. For E-2 entrepreneurs, these steps reflect responsible management and help preserve business continuity in the face of unexpected events.
5. Cybersecurity Risk
Digital threats such as hacking, fraud, or system failure can impact revenue, legal standing, and customer trust. Boston Consulting Group notes that even small firms must put basic protections in place, including secure logins, backups, and data encryption. The USCIS considers the overall stability of a business when reviewing E-2 compliance. Poor digital infrastructure may be viewed as a sign of weak operational control.
Managing risk supports both business survival and visa security. For E-2 investors, a well-structured operation with strong internal controls is a requirement for staying in the U.S. and continuing to grow the business.
Sources
- U.S. Chamber of Commerce – American Business Data Center 2025 – https://www.uschamber.com/economy/american-business-data-center-2025
- U.S. Chamber of Commerce – New Business Applications by State –https://www.uschamber.com/small-business/new-business-applications-a-state-by-state-view
- KPMG – Risk and Compliance Services – https://kpmg.com/us/en/capabilities-services/advisory-services/risk-and-compliance.html
- Boston Consulting Group – Operational Risk and Resilience – https://www.bcg.com/capabilities/risk-management-and-compliance/operational-risk-and-resilience
- Chubb – Business Risk Consulting – https://www.chubb.com/us-en/businesses/risk-consulting.html
- USCIS – E-2 Treaty Investors – https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-2-treaty-investors