Record numbers of people are starting new businesses, with a significant increase in the participation of women and minorities. The study found that 5.5 million new business applications were filed in 2023, up from 1.3 million in 2020, at the start of the pandemic. Gusto surveyed 1,300 small business owners who started their business last year to understand their characteristics.
The results showed that women made up 49% of the new business owners surveyed, an increase from 29% in 2019. However, despite this progress, women entrepreneurs still face challenges in accessing investments, with only 3% receiving private capital investment compared to 9% of male entrepreneurs in 2023.
The study also revealed an increase in minority entrepreneurship, with Black entrepreneurs accounting for 6% of new business owners in 2023, double the rate seen before the pandemic. Hispanic entrepreneurs accounted for 13% of new owners, up from 8% in the previous year. Additionally, there has been a rise in businesses started as “side hustles,” with 44% of entrepreneurs starting a new business while still working another job, up from 27% in 2022.