In 2023, a record number of people started new businesses, with more than 5.5 million new business applications being filed. This marks a significant increase from the previous year, when more than 5 million applications were filed. The surge in new business applications began in 2020 at the start of the pandemic and has continued to grow at an unprecedented pace.
The study found that women comprised 49% of the new business owners surveyed, up from 29% in 2019. Despite this progress, women entrepreneurs continue to receive less interest from investors than their male counterparts. Only 3% of women entrepreneurs received private capital investments in 2023, compared to 9% of male entrepreneurs.
When it comes to minority entrepreneurs, Black entrepreneurs made up 6% of new business owners in 2023, up from just 3% before the pandemic. Hispanic entrepreneurs also saw an increase, making up 13% of new owners compared to just 8% the previous year. More businesses are being started as “side hustles” that supplement day jobs. In fact, in