Business boom: Record numbers of people are starting up new small businesses
Record numbers of people are starting new businesses, and more and more of them are women and minorities, according to a new study
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Record numbers of people are starting new businesses, and more and more of them are women and minorities, according to a new study.
New business applications jumped in 2020 as the pandemic started, and have continued to be filed at a record pace. More than 5 million applications were filed in 2021 and 2022 and a record 5.5 million new business applications were filed in 2023.
Payroll firm Gusto surveyed 1,300 owners who started their small business last year to discover their characteristics.
Women made up 49% of the new business owners surveyed. That's in line with the past several years, but up starkly from 2019, when just 29% of new business owners were women.
Still, women do not receive as much interest from investors as men. In 2023, just 3% of women entrepreneurs received a private capital investment to start their business, compared to 9% of male entrepreneurs.
Black entrepreneurs made up 6% of new business owners in 2023, double the 3% rate seen before the pandemic. Hispanic entrepreneurs made up 13% of new owners, compared to 8% last year.
Meanwhile, more businesses are being started as “side hustles,” or businesses that supplement day jobs. Forty-four percent of entrepreneurs who started a new business in 2023 did so while working another job, either part time or full time, up from 27% in 2022.