Surge in Entrepreneurship: Record New Business Applications and Increased Participation of Women and Minorities in 2023

In 2023, record numbers of people have started new businesses, with a significant increase in the participation of women and minorities. The trend began in 2020 at the start of the pandemic, when the number of new business applications saw a significant jump. This trend has continued, with a record 5.5 million new business applications filed in 2023.

To understand the characteristics of these new business owners, Gusto surveyed 1,300 small business owners who started their business last year. The study found that women made up 49% of the new business owners surveyed, a stark increase from 29% in 2019. However, despite this progress, women entrepreneurs still face challenges in accessing investments, with just 3% receiving private capital investment compared to 9% of male entrepreneurs in 2023.

The study also revealed an increase in minority entrepreneurship, with Black entrepreneurs making up 6% of new business owners in 2023, double the rate seen before the pandemic. Hispanic entrepreneurs accounted for 13% of new owners, compared to