In 2023, the number of new business applications reached a record high of 5.5 million, up from 5 million in 2022 and 4.5 million in 2021. This surge was driven by a combination of factors, including the pandemic’s impact on employment and the growing trend of entrepreneurship among women and minorities.
A study conducted by Gusto found that women were increasingly starting new businesses, with 49% of new business owners being female in 2023, up from 29% in 2019. Despite this progress, however, women still face challenges when it comes to securing funding for their businesses. In fact, only 3% of women entrepreneurs received private capital investment in 2023, compared to 9% of male entrepreneurs.
The study also revealed that there was an increase in the number of Black and Hispanic entrepreneurs in recent years. In 2023, Black entrepreneurs accounted for 6% of new business owners, while Hispanic entrepreneurs made up 13%. These numbers represent a significant shift from pre-pandemic rates, when Black and Hispanic entrepreneurs accounted for just 3% and 8%, respectively.
Another trend that emerged during this time was the rise of side hustles as a way for people to supplement their income. In fact, over half (44%) of new business owners started their business as a side hustle in
