New research shows that there has been a significant increase in the number of people starting new businesses, with many of them being women and minorities. In 2023, there was a record 5.5 million new business applications filed, up from the 2020 surge due to the pandemic.
A recent survey by payroll firm Gusto of 1,300 small business owners who started their businesses last year revealed some interesting trends. Of the new business owners surveyed, 49% were women, an increase from previous years. However, despite this progress, women still do not receive as much support from investors as men, with only 3% of women entrepreneurs receiving private capital investments compared to 9% of male entrepreneurs.
Black and Hispanic entrepreneurs are also starting businesses at a higher rate than before the pandemic. In 2023, Black entrepreneurs made up 6% of new business owners, double the rate seen before the pandemic, while Hispanic entrepreneurs accounted for 13% of new owners, up from 8% the previous year.
Moreover, many people are starting businesses as “side hustles,” with 44% of entrepreneurs who started businesses in 2023 doing so while working another job either part-time or full-time. This is a significant increase from the previous year’s trend of supplementing income with entrepreneurial ventures (from 27% in
