A recent study has shown a surge in new business owners, with more women and minorities joining the entrepreneurial world. The number of business applications increased during the pandemic, and this trend has continued with over 5 million filed in 2021 and 2022, reaching a record 5.5 million in 2023. Payroll firm Gusto surveyed 1,300 small business owners who launched their businesses last year to better understand their characteristics.
The survey revealed that women made up 49% of new business owners in 2023, marking an increase from previous years. However, women still face challenges in attracting investors compared to men. Only 3% of women entrepreneurs received private capital investments to start their businesses, while 9% of male entrepreneurs received investments.
Black entrepreneurs accounted for 6% of new business owners in 2023, doubling the rate seen before the pandemic. Hispanic entrepreneurs made up 13% of new owners, compared to 8% the previous year. Additionally, more businesses are being started as “side hustles,” with 44% of entrepreneurs launching new businesses while working other jobs in 2023, up from 27% in