A recent study has revealed a surge in new business launches, with women and minorities leading the way. The trend began in 2020 as the pandemic spurred a surge in new business applications. In 2023, over 5 million new business applications were filed, reaching a record high of 5.5 million.
The survey conducted by payroll firm Gusto among 1,300 small business owners who started their ventures in the past year provides insight into the demographics of these new entrepreneurs. Women made up nearly half (49%) of the new business owners surveyed, a dramatic increase from 2019 when women accounted for just 29% of new entrepreneurs. Despite this growth, women continue to face gender disparities in accessing investment capital, with only 3% of women entrepreneurs receiving private capital investments in 2023 compared to 9% of male entrepreneurs.
The study also highlights a diversification in the entrepreneurial landscape, with Black entrepreneurs making up 6% of new business owners in 2023, double the pre-pandemic rate of 3%. Hispanic entrepreneurs accounted for 13% of new business owners, up from 8% in the previous year. This indicates a positive trend towards greater diversity and inclusivity in the business world.
Furthermore, there is a growing trend of businesses being launched as “side hustles” by individuals also employed in other jobs. In 2023, 44% of new entrepreneurs started their businesses while working another job, whether part-time or full-time. This marks a significant increase from
