Record-Breaking Year for New Business Starts: Study Shows Women and Minorities Leading the Way, Despite Investment Challenges

In 2023, a record-breaking 5.5 million new business applications were filed, as more and more people started new businesses. This trend began in 2020 at the start of the pandemic and has continued to grow. The study found that women and minority entrepreneurs made up a significant portion of these new business owners.

In particular, women entrepreneurs saw a significant increase in numbers, with 49% of new business owners in 2023 being women, up from just 29% in 2019. However, despite this progress, women still face challenges when it comes to receiving investment. Only 3% of women entrepreneurs received private capital compared to 9% of men. Black entrepreneurs also made up 6% of new business owners in 2023, double the rate seen before the pandemic, while Hispanic entrepreneurs accounted for 13% of new owners, up from 8% the previous year.

Another interesting trend is the rise of “side hustles,” with 44% of entrepreneurs starting a new business in 2023 while working another job. This is a significant increase from just 27% in