In 2023, a record number of new businesses were started, with more than 5.5 million applications filed. This surge began in 2020 at the start of the pandemic and has continued to grow at an unprecedented pace. The study found that women entrepreneurs made up 49% of the new business owners surveyed, marking a significant increase from just 29% in 2019. Despite this progress, women entrepreneurs continue to receive less interest from investors than their male counterparts, with only 3% receiving private capital investments in 2023 compared to 9% for men.
The study also found that Black entrepreneurs made up 6% of new business owners in 2023, up from just 3% before the pandemic. Hispanic entrepreneurs also saw an increase, making up 13% of new owners compared to 8% the previous year. Additionally, many businesses were started as “side hustles” that supplemented day jobs, with over 44% of entrepreneurs starting a new business while working another job in 2023 – up from just over a quarter (27%) in the previous year. Overall, these findings suggest that there is a growing trend towards entrepreneurship and small business ownership across diverse communities and demographics.