Small Business Surge: Unprecedented Numbers of Entrepreneurs Launching New Ventures

A recent study has revealed that record numbers of people are venturing into entrepreneurship, with a significant increase in women and minority-owned businesses. The study, conducted by payroll firm Gusto, surveyed 1,300 small business owners who started their ventures in 2023.

According to the study, there has been a surge in new business applications since the onset of the pandemic in 2020. In 2021 and 2022, over 5 million applications were filed, and a record 5.5 million new business applications were filed in 2023.

One of the key findings of the study is the rise in women-owned businesses, with women making up 49% of the new business owners surveyed. This marks a significant increase from 2019 when only 29% of new business owners were women. However, despite this progress, women entrepreneurs still face challenges in securing private capital investment, with only 3% receiving funding compared to 9% of male entrepreneurs.

The study also highlighted the growing diversity in entrepreneurship, with Black entrepreneurs accounting for 6% of new business owners in 2023, double the pre-pandemic rate. Hispanic entrepreneurs made up 13% of new owners, compared to 8% the previous year.

Additionally, the study found that more businesses are being started as “side hustles,” with 44% of entrepreneurs launching their ventures while working another job. This marks a significant increase from 27% in 2022.

Overall, the study reflects a dynamic and evolving landscape of entrepreneurship, with a diverse range of individuals taking the leap into business ownership.