Unprecedented Rise in Diversity and Side Hustles: Study Finds Surge in Female and Minority Entrepreneurs

New business applications have surged in recent years, with a significant number being started by women and minorities. According to a study conducted by Gusto, 49% of new business owners were women in 2023, up from 29% in previous years. Despite this increase, women entrepreneurs still receive less interest from investors compared to men, with only 3% receiving private capital investments in 2023, compared to 9% of male entrepreneurs.

Black entrepreneurs accounted for 6% of new business owners in 2023, double the rate seen before the pandemic. Hispanic entrepreneurs made up 13% of new business owners in 2023, up from 8% the previous year. Additionally, there has been an increase in businesses being started as side hustles or supplemental jobs. In 2023, 44% of entrepreneurs who started a new business did so while working another job either part-time or full-time, up from 27% in 2022.