A recent study 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 2020, as the pandemic began, there was a surge in new business applications, and this trend has continued with a record 5.5 million new business applications filed in 2023.
A survey conducted 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, a significant increase from previous years. However, 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.
There has also been an increase in the number of Black and Hispanic entrepreneurs starting businesses. 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.
Additionally, more businesses are being started 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 27% seen in 2022, highlighting the trend of people supplementing their income with entrepreneurial ventures.