WOMEN ARE OWNERS OF HALF OF NEW BUSINESSES

Survey shows uptick in child care duties was motivation for some

Women and minorities have been fueling the boom in business creation of the past two years in the U.S.

A survey found that almost half of 2021’s new entrepreneurs were women, a significant uptick from 28 percent in 2019. And the share of new Black business owners tripled to 9 percent, according to Gusto, a payroll and human-resource management business.

The findings confirmed similar gains in separate research by webhosting company GoDaddy. Among the factors behind the surge in female entrepreneurship: child care responsibilities. With schools and child care centers still disrupted last year, a growing share of parents — particularly women — started their own business out of necessity.

In the Gusto survey, more than a quarter of female business owners with school-age children said they created their company in response to increased child care duties.

A record 5.4 million new businesses were formed in the U.S. last year, according to the Census Bureau, showing that the burst of creation seen in the early months of the pandemic has legs.

While some of the COVID entrepreneurship was born of necessity in the early days after millions of workers lost their jobs, today’s business owners are more likely to be motivated by better opportunities.

Among Black respondents in the Gusto survey, more than onethird created a business to improve their financial stability — a larger share than their White and Hispanic counterparts.

Overall, the study found that many workers are “placing a premium on the flexibility and autonomy afforded by self-employment,