Gusto’s latest survey of businesses reveals that women are starting businesses at unprecedented rates. Women started 49% of new businesses last year, a 69% increase from 2019 and a five-year high. Gusto’s research adds demographic depth to the Census Bureau 2024 business formation numbers. From addressing women's wellness needs to tourism and real estate investment opportunities to leveraging AI in media analysis, these three stories showcase the dynamism and challenges of female entrepreneurship in 2024.

The entrepreneurship landscape is undergoing a significant change, with women increasingly stepping into the role of business founders. Gusto's 2025 New Business Formation Survey offers compelling evidence of this shift, revealing a notable surge in women-led ventures across various sectors.

Fanny Tristan, a clinical social worker, exemplifies this trend. Tristan launched her therapy practice in 2020, experiencing a boom as Black women sought support during the civil unrest that began in the wake of the murder of George Floyd and a broader societal recognition of the importance of mental health. Tristan's established referral network initially provided a steady stream of clients.

Business began to slow in 2023, and Tristan sought to diversify her revenue stream with a new product line. She identified a market gap aligned with her skills and passion, and complementary to her therapy business. "I noticed a pattern of a lot of women coming into my practice who were coming out of breakups or just were single for a long time, and feeling really insecure about that, and just feeling really, like, hopeless about their futures and feeling aimless because they weren’t partnered, and they couldn't really envision a life without all these big milestones," Tristan explains.

For ethical reasons, she wanted to separate her therapy business from her coaching business. In 2024, Tristan launched Her Soul Supply, a wellness coaching business for single women of color. Her new business offers education, travel, and sisterhood experiences focused on personal growth and empowerment. Like many new and growing businesses, Her Soul Supply required Tristan to expand her capacity, leading her to hire a virtual assistant to support her digital marketing efforts.

Embarking on the entrepreneurial journey is often accompanied by a unique set of challenges, requiring founders to juggle multiple responsibilities and overcome various obstacles. Gusto's survey highlights that time management and cash flow are among the most significant operational challenges for new business owners. Many entrepreneurs find themselves stretched thin, struggling to balance the demands of running a business with other commitments, such as existing jobs or being a student.

Cash flow management presents another major hurdle, particularly in the early stages of a business. New businesses often face the challenge of covering expenses before generating consistent revenue, requiring careful financial planning and resource allocation. These challenges can be particularly daunting for women entrepreneurs, who may face disparities in access to funding for early-stage businesses, especially funding for side hustles.

Despite side hustles’ decline from 45% in 2024 to 35% in 2024, a mother and daughter launched a part-time business to validate their concept. The experience with World Network NYC of Mukarram Igamberdieva and her daughter Mohina Abdullaeva—Uzbekistan immigrants—illustrates the complexities of balancing entrepreneurship with other responsibilities.

World Network NYC is a business that provides cultural events, tourism services, and connections to real estate opportunities for travelers from Central Asia, combined with opportunities to explore New York City and other U.S. destinations.

Igamberdieva has a day job a a financial consultant and Abdullaeva is student at Baruch College. “Balancing time, work, business, and personal life can be overwhelming,” said Igamberdieva. “[I] create a strict schedule, prioritize tasks, and automate or delegate where possible.”

"I think one of the biggest challenges has been getting the funding necessary to kickstart and serve as many clients as possible," Abdullaeva explains. She also notes the difficulties of managing finances and keeping track of income and expenses.

Generative AI is rapidly emerging as a transformative tool for new businesses, offering entrepreneurs unprecedented opportunities to streamline operations, enhance productivity, and drive growth. Gusto's research highlights the widespread adoption of AI among new business owners, with nearly half (47%) utilizing Generative AI tools. This technology is not only increasing efficiency but also leveling the playing field, enabling even small startups to compete with larger, more established companies.

LaTecia Johnson, founder of INGENIUS, is at the forefront of leveraging AI to revolutionize the media industry. INGENIUS provides a platform that helps brands and creators manage media campaigns, aggregate data, and optimize partnerships.

Johnson emphasizes AI's ability to address the challenges of fragmented data and complex algorithms. "AI allows us to now process this data pretty quickly, and it gets really insightful about the processing of that data," Johnson explains. "So what we like to say at INGENIUS is that we get people 80% of the way there, and the 20% that is remaining is that human element that simply can't be replaced."

Johnson's experience also sheds light on the challenges and opportunities of raising venture capital in this rapidly evolving technological landscape. Having successfully raised $2 million in a pre-seed round, Johnson stresses the importance of strategic investors who understand the transformative potential of AI and the need for innovative solutions.

The Gusto survey identifies significant trends in business formation, particularly the growing prominence of women in entrepreneurship. In 2024, women launched nearly half of all new businesses. This surge reflects not only a desire for autonomy and flexibility but also a strong drive to address unmet needs and empower communities.

AI is increasingly a foundational tool, empowering female founders to disrupt industries and create scalable businesses. Both the report and the experiences of these female entrepreneurs underscore the dynamism and resilience of women in the business world.