Black women are emerging as the driving force behind the surge in entrepreneurship, rapidly closing the gender gap, according to a recent report from GoDaddy's Venture Forward research initiative.

The study reveals a doubling of Black women-led businesses since August 2019, constituting 10 per cent of the entrepreneurs surveyed. Moreover, it represents a significant 70 per cent increase in Black women-owned businesses compared to the pre-pandemic period.

The data underscores a broader trend of diversity in entrepreneurship, with individuals identifying as Black, Asian, Pacific Islander, American Indian, Alaska Indigenous, or multiracial entrepreneurs now collectively owning 29 per cent of U.S. microbusinesses. This figure marks a substantial rise from the 17 per cent reported in 2019.

Alexandra Rosen, senior director of Venture Forward, said, "We all know entrepreneurship is powerful, and with this data, people can understand precisely how powerful it is across different types of small and microbusinesses."

Key insights from the report include:

• Black entrepreneurs now own 15 per cent of U.S. microbusinesses, with Black women leading in 68 per cent of these cases.
• Generation X represents the largest cohort of entrepreneurs, comprising 41 per cent of the total.
• One in six microbusiness owners earns an annual income exceeding $100,000.
• Nearly half (46 per cent) of respondents have shifted their microbusinesses from supplemental to primary sources of income.
• Approximately three out of 10 women with a microbusiness are the breadwinners in their households.
• Sixty-three percent of entrepreneurs reported a better quality of life as business owners.
• Seventy-one percent of surveyed microbusinesses experienced revenue growth or stability in the past six months.

"What our research demonstrates is that entrepreneurship creates positive impacts for entrepreneurs' households, the communities where they live and work, as well as the greater economy," Rosen said.

GoDaddy's Venture Forward research initiative, analyzing the growth and economic impact of over 20 million online microbusinesses, categorizes microbusinesses as small enterprises with a unique domain, an active website, and typically fewer than 10 employees.

The annual U.S. survey, ongoing since 2018, has gathered insights from more than 30,000 small business owners, according to GoDaddy.