Amidst the global pandemic, a significant increase in new business applications has been observed. In 2023, over 5.5 million new business applications were filed, surpassing the previous year’s record of 5 million. The surge in business applications began in 2020 as the pandemic began and has continued ever since.
A survey by Gusto revealed that women are increasingly becoming entrepreneurs, with 49% of new business owners being women in 2023, up from 29% in 2019. However, despite this increase, women still receive less investment than men. Only 3% of women entrepreneurs received private capital investment in 2023 compared to 9% of male entrepreneurs.
The study also showed that Black entrepreneurs doubled their rate from before the pandemic to 6% in 2023, while Hispanic entrepreneurs accounted for 13%, up from 8% the previous year. Additionally, there was a rise in side hustles as a way to supplement income, with 44% of entrepreneurs starting a new business while working another job in 2023 compared to 27% in 2022.
Overall, the study highlights how entrepreneurship is changing and becoming more diverse, with an increasing number of women and minorities starting new businesses and side hustles as a way to supplement income.