Women across the United States started 49 % of all new businesses in 2024 signalling a seismic shift in American entrepreneurship. The surge up 69 % since 2019 suggests women are driving the nation's startup boom and reshaping the small‑business landscape.
This growth spurt coincides with a broader rise in US business formation. Overall application numbers remained elevated last year, and more than half of new ventures were profitable. With applications in June 2025 up 20 % from June 2024, analysts expect women's share of new companies to climb even higher.
What's behind the boom
The latest figures, based on the Gusto 2025 New Business Formation Report and US Census data, reveal that nearly one in two new firms launched last year had a female founder. This marks the highest proportion in at least five years, and it dwarfs the 29 % share women held in 2019. The increase parallels a surge in entrepreneurship overall: new business applications have remained at historic highs since the pandemic, suggesting a broader appetite for self‑employment.
When did the surge begin
Women's entrepreneurship accelerated after 2019 and gained momentum during the pandemic. Between 2019 and 2024, the number of females‑founded start‑ups jumped 69 %. Analysts attribute the rise to a combination of factors: corporate layoffs and return‑to‑office mandates pushed some women to leave traditional jobs, while the growth of digital platforms lowered barriers to entry.
Where is the growth happening
The boom spans the United States. Census data show that business applications are up 20 % nationally year‑on‑year, with particular strength in Sun Belt states and mid‑sized cities. Service‑oriented sectors such as personal care, e‑commerce, health‑care support and professional services account for much of the activity. Many women are starting businesses from home, taking advantage of remote work and digital marketing to reach customers across state lines.
Who is fuelling it
While female entrepreneurs are diverse, they share certain motivations. Research from financial services firm Empower notes that nearly half of women (46 %) cite financial independence as central to happiness, and 68 % say living debt‑free is a top goal. These aspirations, combined with a desire for flexibility, drive women to set up their own enterprises. Women of colour are particularly active; they have been starting businesses at faster rates than white women for years, though they often face greater barriers to capital.
Why are women turning to entrepreneurship
Many women say starting a business gives them greater control over their careers and income. The report notes that only 35 % of new ventures in 2024 were side hustles, down from 45 % in 2023. Return‑to‑office policies and rigid work schedules make it difficult to juggle a day job and a start‑up, prompting more women to commit to their businesses full‑time. Entrepreneurship also offers an escape from wage gaps and glass ceilings: although women now make up 46 % of US managers and 55 women run Fortune 500 companies, female‑led businesses still account for only 4.2 % of US firms with revenues above $1 million.
How are women overcoming obstacles
Access to capital remains a major hurdle. Women‑owned firms account for 46 % of those seeking angel investment, yet women receive only a fraction of venture funding. That is slowly changing: almost half of angel investors are now women, and initiatives such as CHASM an online platform offering female founders free pitch‑deck templates, legal workshops and grants are emerging to close resource gaps. High‑profile pledges, such as the Tory Burch Foundation's commitment to deploy $1 billion in loans and grants by 2030, aim to help more women scale their enterprises.
Despite progress, female founders still report spending far more time pitching for capital than male counterparts. Anu Duggal, founder of the Female Founders Fund, said she took 700 meetings to raise $5.85 million for her first fund. Studies from the University of Colorado find that women also struggle to access informal mentorship networks dominated by men.
