Hiring and Growth

June 24, 2022: 5.4 Million Businesses Were Created in 2021. Here’s How They’re Doing

Mohini Kundu Content Marketer, Gusto 
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June 24, 2022

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Just in: 2022 New Business Owner Survey

Over 5.4 million new businesses were formed in 2021, in the middle of a once-in-a-century pandemic. So why did these business owners choose to get started then? And how are they doing? Our Gustonomics team posed these questions in our 2022 survey of new business owners, taken from Gusto’s customer base of more than 200,000 companies.

Here are some highlights:

  • Women and entrepreneurs of color continue to lead new business creation, as they did in 2020 as well.
  • In 2021, 42% of newly-created businesses were in Professional Services.
  • Over one-third of the entrepreneurs surveyed (36%) started their business after voluntarily quitting their job, and the top reason for starting a business was to seize a pandemic-related business opportunity (25%).
  • 29% of these business owners stated inflation as the top issue their business is facing.

Read the full report here.

Short on staff?

Over 10 million jobs have gone unfilled in the U.S. in recent months, so it’s safe to say that hiring trouble is not a “you” problem. Regardless of the market trends, it’s an all-too common problem for small business owners: too much work for too few people. 

When hiring more helping hands isn’t an option, Inc. columnist Jeff Haden has five tips to help you bridge the staffing gap—including one key question that can help you ruthlessly prioritize what to focus on.

Get Jeff’s tips for dealing with staffing shortages on our blog.

July compliance calendar

I’m sure we don’t need to remind you that the Independence Day long weekend is around the corner, but our cal can still help make sure you don’t miss any important deadlines while you’re enjoying the holiday. Check it out here.

From our Partners

Do you want to see how your TA team stacks up? Discover how recruiting organizations performed with their talent acquisition strategies in 2021 with Lever’s Talent Benchmarks Report. See how these orgs made the most of Lever Nurture to engage candidates in their funnel, to the typical amount of time it took them to hire prospects following interviews. Get it here.

Fresh from Gusto

Watchlist

JUN 28: Retention Starts at Day Zero: How to Craft Employee Experiences That Make Them Stay

Keeping talent is more important than ever in this changing work culture. On June 28 at 10am PT, we’ll be partnering up with Bonusly and Lever to demystify what makes employees want to stay at your company long term. From crafting key experiences with candidates in the hiring process to setting new employees up for success and hosting impactful career planning conversations, we will explore strategies for employee journeys that work. Register here.

JUN 29: Grow with Gusto: Features for Scaling Businesses

Growing a business is exciting, but as you grow so do your needs—from payroll in multiple states to offering a competitive benefits package. Join us on June 29 at 11am PT for a look at the Gusto tools and integrations specifically designed to make scaling your team easier. Register here.

Find the latest relief options in our Small Business Relief Finder.

Want more news and resources? Check out past editions in our archive.

Mohini Kundu
Mohini Kundu Mohini Kundu is a news editor on the Gusto content team. She studied journalism at Northwestern University and started her career at The Huffington Post before embracing the #startuplife.

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