In 2023, record numbers of people started new businesses, with a significant increase in the participation of women and minorities. The study found that women made up 49% of the new business owners surveyed, an increase from 29% in 2019. However, despite this progress, women entrepreneurs continue to face challenges in accessing investments, with only 3% receiving private capital investment compared to 9% of male entrepreneurs.
The number of new business applications saw a significant jump in 2020 at the start of the pandemic, and this trend has continued with a record 5.5 million applications filed in 2023. Gusto, a payroll firm, surveyed over one thousand small business owners who started their business last year to understand their characteristics. The study revealed an increase in minority entrepreneurship as well, with Black entrepreneurs making up double the rate seen before the pandemic and Hispanic entrepreneurs accounting for over a quarter of new owners.
Additionally, there has been a rise in businesses started as “side hustles,” with over half of entrepreneurs starting a new business while still working another job in 2023, up from around one-third in the previous year. This shows that more people are taking advantage of remote work arrangements and flexible schedules during the pandemic to pursue entrepreneurial ventures alongside their full-time jobs.