Entrepreneurship on the Rise: Study Finds Increase in Women and Minority Business Owners

A recent study has shown a surge in the number of new businesses being started, with an increase in the number of women and minorities joining the entrepreneurial game. The pandemic saw a surge in business applications, and this trend has continued at a record pace. In 2023, there were over 5.5 million new business applications filed, up from 5 million in 2021.

Gusto conducted a survey of 1,300 new small business owners to identify their characteristics. The results showed that nearly half or 49% of the new business owners were women, consistent with the trend of the past few years but still facing challenges such as only 3% receiving private capital investment compared to 9% of male entrepreneurs. Additionally, black entrepreneurs accounted for 6% of new owners in 2023, a significant increase from pre-pandemic rates of 3%. Hispanic entrepreneurs made up 13% of new owners, compared to an 8% representation in the previous year.

Moreover, many entrepreneurs are starting businesses as side hustles, with 44% doing so in 2023 compared to just 27% in the previous year. This trend is likely due to more people working remotely and having more time for side projects. Overall, it’s clear that entrepreneurship is becoming more accessible and diverse, with more people taking advantage of opportunities to start their own businesses.