We’re in the midst of a post-pandemic small business revival: Americans have started more new businesses last year than ever since data collection started.
Female entrepreneurs are a major driver of that growth. New data from my company, Gusto, shows that women started half of all new businesses in 2023. This is compared to a mere 29% in 2019. Women-led businesses have proven uniquely resilient to tough economic conditions like persistently high inflation and interest rates, and they generated $2.7 trillion in revenue last year.
This is a remarkable comeback for women entrepreneurs who suffered disproportionately during the pandemic. Here’s why female entrepreneurs are creating businesses at record rates.
Seeking flexibility in their approach to work
Gusto found that 70% of women who started a new business in 2023 cited flexibility as their number-one reason for starting a business. They cited several other reasons including needing to supplement household income, wanting to build financial assets, and losing a job in their household. They cared more than men about having the freedom to decide how they work.
