Breaking Barriers: Women and Minorities Leading the Way in New Business Creation

A recent study reveals that the number of new businesses started has significantly increased, with a majority of them being women and minorities. In 2023, there was a record 5.5 million new business applications filed, a surge from the previous year.

A survey conducted by payroll firm Gusto of 1,300 small business owners who started their businesses in 2022 showed some intriguing trends. Of the new business owners surveyed, 49% were women, an 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.

The study also revealed 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.

Moreover, 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 previous year’s figure of only 27%.