Half of New US Entrepreneurs Are Women- They Are Leading a Creation Boom

Business creation by women and minorities is rising. In fact, half of the new US entrepreneurs are women, and they are leading the creation boom. Sounds interesting? Read on to know more.

Numbers Reveal Everything

A survey has unveiled that about half of new entrepreneurs in 2021 were women. It was just 18% in 2019. The share of new Black business owners has also tripled to 9%. Gusto, a payroll, and human resource management business shared the survey results.

Another research by GoDaddy Inc., a web hosting company, stated that there was an increase in female entrepreneurship. Many women started their own businesses out of necessity as they had to face many challenges last year. An example of those challenges was more child-care responsibilities for women as schools and child-care centers were disrupted.

Even in the Gusto survey, over a quarter of female business owners with school-aged children stated that they created their company to respond to a rise in child-care duties.

According to the Census Bureau, about 5.4 million new businesses were formed in the US last year. As millions of workers lost their jobs when the pandemic began, some businesses were born of necessity.

More than one-third of the Black respondents in the Gusto survey created a business as they wanted to improve their financial stability. It is a larger share than the Hispanics and White people in the survey.

The survey also revealed that many workers are “placing a premium on the flexibility and autonomy afforded by self-employment, and they are quitting paid employment in favor of entrepreneurship.”

Where Are They Based?

Economists at UCLA Anderson Forecast developed an index of micro business activity using data from GoDaddy to map out where the new businesses are. Santa Clara, California, was at the top of the index, and counties surrounding Washington, DC, were also high on the list. In these counties, new firms can feed off government contracts. The other two locations were Brooklyn and Manhattan in New York.

Going Strong?

About nine out of ten respondents in the Gusto survey admitted that their company did well and performed as per the forecast or even better than the forecast.

However, more than one-in-five have admitted they took on a side job to help cover operating costs.

Female Entrepreneurship is Rising in Developing Nations

In the Female Entrepreneurship Resource Point, the World Bank has stated that between eight million and ten million small and medium-sized enterprises spread across the developing nations have at least one female owner.

The World Bank also said that working from home helps women “satisfy competing demands for their time.” This includes “a disproportionate share of housework and child-care responsibilities.”

The Obstacles

In developing nations, the most common obstacles faced by female entrepreneurs are a lack of access to finance and legal inequalities. The restrictions on owning or managing property also pose a big challenge.

The World Bank also shared that globally, only one in three businesses are owned by women.





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