NEW YORK (AP) — A record number of people are starting new businesses, and an increasing number of them are women and minorities, a new study finds.
New business applications surged in 2020 when the pandemic began and continue 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 company Gusto surveyed 1,300 small business owners who started their own businesses last year to find out their characteristics.
Women accounted for 49% of new business owners surveyed. While this number is consistent with previous years, it is a significant increase from 2019, when only 29% of new business owners were women.
Still, women don’t receive as much attention from investors as men. In 2023, only 3% of female entrepreneurs received private capital investment to start their businesses, compared to 9% of male entrepreneurs.
Black entrepreneurs will account for 6% of new business owners in 2023, double the 3% pre-pandemic rate. Hispanic entrepreneurs accounted for 13% of new owners, compared to 8% last year.
On the other hand, an increasing number of businesses are being started as a “side job” to supplement the main job. 44% of entrepreneurs who started a new business in 2023 did so while working part-time or full-time at another job, up from 27% in 2022.
