Entrepreneurs of African and Latin ethnicity registered stronger progress in 2024 business ventures, demonstrating a more substantial advancement compared to previous years.
In 2024, entrepreneurship among Asian American Pacific Islander (AAPI), Black, and Latine individuals demonstrated robust growth, according to a recent report by payroll manager Gusto. This expansion was further amplified by a rise in the number of people starting businesses following job losses, with a 67% increase compared to previous years.
The study, conducted by the Gusto Insights Group and based on surveys of over 1,000 new business owners launched in 2024, provided insight into the health of entrepreneurship in the said year.
Significant growth was observed among Black entrepreneurs, whose numbers grew 67% compared to AAPI (17%) and Latine (25%) founders since 2019. This surge in Black entrepreneurship can be attributed, in part, to persisting pay and wealth gaps, as well as the belief in self-earned income. Black entrepreneurs were 2.1 times more likely than white entrepreneurs to start their businesses to supplement existing income.
Latine business owners were 1.7 times more likely than their white counterparts to cite self-employment as a means to earn more. The report points to heightened confidence in their potential for success and control over their careers as primary motivators for these entrepreneurs of color.
Moving forward, women accounted for nearly half (49%) of all new businesses in 2024, marking a 69% increase from 2019. This significant leap signifies the highest recorded proportion in the past six years, indicating a marked increase in women entrepreneurship.
Flexibility in work arrangements was identified as one of the main drivers for this trend, with women entrepreneurs being 17% more likely than male entrepreneurs to desire independent leadership and a flexible schedule.
The Gusto report underscores the substantial and encouraging growth of entrepreneurship within AAPI, Black, Latine, and women communities in 2024, emphasizing their increasing role in the economy. Despite facing barriers in securing investment capital, these entrepreneurs demonstrate resilience and resourcefulness, relying on personal networks and debt financing to establish and scale their businesses.
- The 67% increase in Black founders compared to AAPI (17%) and Latine (25%) founders since 2019 may be attributed to the persisting pay and wealth gaps and the belief in self-earned income.
- Latine business owners were 1.7 times more likely than their white counterparts to cite self-employment as a means to earn more, indicating a focus on personal finance as a motivation for entrepreneurship.
- The surge in Black entrepreneurship and the significant leap in women entrepreneurship in 2024, with 49% of all new businesses, highlights the importance of diversity-and-inclusion in the realm of finance and business.
