New data from Gusto shows that women launched 49% of all new U.S. businesses in 2024—up from just 29% in 2019—marking a significant shift in who’s shaping the entrepreneurial landscape. The surge is especially prominent among Black, AAPI, and younger women. Millennial and Gen Z women are outpacing their male counterparts in new business formation, driven largely by the pursuit of autonomy and flexibility. More than 70% of women founders cited control over their schedules as a key reason for starting a business, and many prioritized goals beyond financial growth, such as community impact and long-term stability.
Women founders are also shifting how businesses are built. They're more likely to finance startups with personal loans or support from friends and family, rather than tapping equity or SBA loans—leaving many with higher personal financial exposure. When it comes to hiring, women take a more intentional path, often converting contractors to employees over time and tapping professional networks rather than relying on informal contacts. Many are also leveraging tools like generative AI to streamline operations and customer service. As women reshape entrepreneurship, policymakers and investors have a clear opportunity to adjust capital programs and support systems to reflect the motivations, methods, and risk profiles of this growing segment of business owners.
