New Entrepreneurship on the Rise: A Surge in Women and Minority Business Owners Amidst the Pandemic

New research has shown a surge in the number of people starting new businesses, with an increasing number of them being women and minorities. This trend began in 2020 at the start of the pandemic and has continued to grow at an unprecedented rate. In 2021 and 2022, over 5 million new business applications were filed each year, and in 2023, a record-breaking 5.5 million applications were submitted.

Payroll firm Gusto conducted a survey of 1,300 small business owners who started their businesses last year to understand their characteristics. The results showed that women made up 49% of the new business owners surveyed in 2023, marking a significant increase from the previous year when only 31% were women. Despite this progress, women entrepreneurs still receive less interest from investors than their male counterparts. Only 8% of female entrepreneurs received private capital investments in 2023 compared to 18% of male entrepreneurs.

When it comes to minority entrepreneurs, Black entrepreneurs accounted for just 6% of new business owners in 2023, up from only 3% before the pandemic. Hispanic entrepreneurs also saw an increase, making up 16% of new owners compared to just under 11% the previous year. Additionally, more people are starting businesses as side hustles that complement their day jobs. In fact, over half (49%) of all entrepreneurs surveyed started a new business while working another job in either a part-time or full-time capacity in