Who Is Starting New Companies, Why, and How?

Gusto recently released its 2022 New Business Survey, which provided some interesting information and analysis about companies that launched last year and who is starting them.

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For one, the share of women-led entrepreneurial efforts dipped by 2% to 47% from the 49% that had been registered in both 2020 and 2021. In contrast to the 29% of new businesses that were helmed by women prior to the pandemic, however, the new paradigm seems to be set and not going anywhere for the time being.

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Further, spiking inflation and financial concerns in general played an increasingly big part in inspiring the launch of a good portion of these companies, with 41% starting their business to supplement their income - up from 25% the year before. 

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Mid-career burnout also had a larger role last year than the year prior, with 49% of new companies started by people who had quit their job in order to do so, up from 36% the year before.

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You can find that survey and analysis here.