Unprecedented: 2023 Witnesses Record-Breaking Number of New Business Applications, Increased Women and Minority Entrepreneurs

In 2023, record numbers of people started new businesses, with a significant increase in women and minority entrepreneurs. The trend began in 2020 at the beginning of the pandemic and has continued to grow since then. Over 5 million new business applications were filed in 2021 and 2022, with a record-breaking 5.5 million applications in 2023.

According to a survey conducted by Gusto, women made up a significant portion of new business owners in 2023, with 49% being women, an increase from just 29% in 2019. However, despite this progress, women still face challenges in receiving investment, with only 3% of women entrepreneurs receiving private capital compared to 9% of men. Black entrepreneurs also saw a surge in representation, making up 6% of new business owners in 2023, double the rate seen before the pandemic. Hispanic entrepreneurs accounted for even more at 13%, up from 8% the previous year.

Another interesting trend is the rise of side hustles among entrepreneurs, with over half starting a new business while working another job in 2023. This is a significant increase from just over half in