Latest news with #NichTremper
Business Insider
23-05-2025
- Business
- Business Insider
The share of businesses started by women kept rising while the funding gap was stubborn
Women-owned startups made up 49% of all new businesses in 2024, up from 29% in 2019 and the highest share recorded in the past six years, per a new report from Gusto. The HR and payroll platform surveyed its users and also found that AAPI, Black, and young women were driving this trend. Despite the risks and barriers that women face in starting their own businesses, many are choosing entrepreneurship because of the independence and autonomy it can offer, said Nich Tremper, senior economist at Gusto. "It's seeing a shift from this necessity entrepreneurship to this opportunity entrepreneurship," said Tremper, referencing a change he saw in 2022. "So we've seen women go from saying, 'I need to start a business to make ends meet, to take care of my kids,' to, 'I want to start a business because of the benefits that it provides.'" Even with the growth of women-owned businesses, barriers still exist for women seeking investments to start or scale their startups. As a result, many rely on financing from their personal networks and debt to launch their enterprises. Women of color are driving entrepreneurship Tremper said the growth of new businesses is driven by women of color who are seeking more independence and ownership of their work. Fifty-four percent of all new AAPI- and Black-owned businesses were started by women, compared to 46% that were started by their male colleagues, per Gusto. Social justice movements like Black Lives Matter and Stop AAPI Hate bolstered support for businesses owned by women of color, per a report published earlier this year by Wells Fargo. Tremper added that Black and AAPI women-owned businesses gained more momentum during the pandemic. Meanwhile, Hispanic women made up 43% of new business owners compared to 56% of Hispanic men. Gusto reported that the disparity was because women-owned businesses are focused on the community and personal services sectors, while almost half of all Hispanic-owned businesses are concentrated in goods production like home remodeling or construction. Men started nearly 70% of businesses in that sector. Younger generations of women are also reaching gender parity: More than half of the businesses created by millennials and Gen Zers were women-owned. On the other end of the spectrum, male baby boomers made up 64% of new business owners compared to 36% of boomer women. Although it's typical for people to launch businesses in their mid- to late 30s and early 40s — after they've developed an expertise in a particular field — that trend has been changing, Tremper said. "As women are increasingly a large share of the labor market over the last several years, millennial and Gen Z women are really starting businesses at higher levels," Tremper added. The equity gap in business financing Women-owned businesses earn a higher return at $0.78 for every dollar invested compared to men's $0.31, Tremper said. Additionally, women-owned businesses have seen faster revenue and employment growth in the past five years compared to businesses started by men, per Wells Fargo. However, Tremper said there's a persistent gender gap between equity financing for women and men. "The women who do receive this equity financing really outperform men, but they're still getting it at a lower rate," Tremper said. Women who apply for private investments are 75% less likely to receive equity funding than their male peers, per Gusto. Gusto's research found that women largely relied on their social networks and accruing personal debt to finance their new businesses. It was more common for women to also secure private loans through collateral in their homes or vehicles, which can expose them to more financial risks. That means that the stakes can be higher for women-owned businesses—if the founders fail, their personal finances could take a hit. Despite these challenges and barriers, women-owned businesses are resilient and continuing to find success in the market, Tremper said. "We're seeing these women-owned businesses coming into the economy and sticking around," he added. "They're keeping their course, they're active players in the economy."
Business Insider
23-05-2025
- Business
- Business Insider
The share of businesses started by women kept rising while the funding gap was stubborn
Younger women and women of color are starting more small businesses than men. Women-owned startups made up 49% of all new businesses in 2024, up from 29% in 2019 and the highest share recorded in the past six years, per a new report from Gusto. The HR and payroll platform surveyed its users and also found that AAPI, Black, and young women were driving this trend. Despite the risks and barriers that women face in starting their own businesses, many are choosing entrepreneurship because of the independence and autonomy it can offer, said Nich Tremper, senior economist at Gusto. "It's seeing a shift from this necessity entrepreneurship to this opportunity entrepreneurship," said Tremper, referencing a change he saw in 2022. "So we've seen women go from saying, 'I need to start a business to make ends meet, to take care of my kids,' to, 'I want to start a business because of the benefits that it provides.'" Even with the growth of women-owned businesses, barriers still exist for women seeking investments to start or scale their startups. As a result, many rely on financing from their personal networks and debt to launch their enterprises. Women of color are driving entrepreneurship Tremper said the growth of new businesses is driven by women of color who are seeking more independence and ownership of their work. Fifty-four percent of all new AAPI- and Black-owned businesses were started by women, compared to 46% that were started by their male colleagues, per Gusto. Social justice movements like Black Lives Matter and Stop AAPI Hate bolstered support for businesses owned by women of color, per a report published earlier this year by Wells Fargo. Tremper added that Black and AAPI women-owned businesses gained more momentum during the pandemic. Meanwhile, Hispanic women made up 43% of new business owners compared to 56% of Hispanic men. Gusto reported that the disparity was because women-owned businesses are focused on the community and personal services sectors, while almost half of all Hispanic-owned businesses are concentrated in goods production like home remodeling or construction. Men started nearly 70% of businesses in that sector. Younger generations of women are also reaching gender parity: More than half of the businesses created by millennials and Gen Zers were women-owned. On the other end of the spectrum, male baby boomers made up 64% of new business owners compared to 36% of boomer women. Although it's typical for people to launch businesses in their mid- to late 30s and early 40s — after they've developed an expertise in a particular field — that trend has been changing, Tremper said. "As women are increasingly a large share of the labor market over the last several years, millennial and Gen Z women are really starting businesses at higher levels," Tremper added. The equity gap in business financing Women-owned businesses earn a higher return at $0.78 for every dollar invested compared to men's $0.31, Tremper said. Additionally, women-owned businesses have seen faster revenue and employment growth in the past five years compared to businesses started by men, per Wells Fargo. However, Tremper said there's a persistent gender gap between equity financing for women and men. "The women who do receive this equity financing really outperform men, but they're still getting it at a lower rate," Tremper said. Women who apply for private investments are 75% less likely to receive equity funding than their male peers, per Gusto. Gusto's research found that women largely relied on their social networks and accruing personal debt to finance their new businesses. It was more common for women to also secure private loans through collateral in their homes or vehicles, which can expose them to more financial risks. That means that the stakes can be higher for women-owned businesses—if the founders fail, their personal finances could take a hit. Despite these challenges and barriers, women-owned businesses are resilient and continuing to find success in the market, Tremper said. "We're seeing these women-owned businesses coming into the economy and sticking around," he added. "They're keeping their course, they're active players in the economy."
CNBC
24-04-2025
- Business
- CNBC
Gen Z workers increasingly opt out of college and into the trades: ‘There are about 2 million fewer students,' says expert
As members of Gen Z continue to graduate high school and enter adulthood, many elect to forgo traditional college degrees. That's in part because of the cost of getting a bachelor's degree, they tell CNBC Make It. The annual cost of attending a four-year public college has gone up 140% in the last 20 years, according to the Education Data Initiative. It's gone up 110% for private colleges, according to CNBC Make It calculations. "There are about 2 million fewer students in a traditional four-year university now than in 2011," says Nich Tremper, senior economist at payroll and benefits platform Gusto. Instead, many young people are entering skilled trades like construction, plumbing, electrical contracting and automotive repair. In the first quarter of 2024, Gen Z made up 18% of the workforce, according to the Department of Labor, but 18- to 25-year-olds made up nearly 25% of all new hires in skilled trade industries that year, according to Gusto. Here's how Gen Zers are finding their place in blue collar work and what could be in store for them given the Trump administration's latest tariffs. Morgan Bradbury, 21, first tried welding in high school. She loved it. "I just immediately was mesmerized by the fact that I could have the ability to build things with my own hands," she says. After graduating high school, Bradbury took a nine-month welding certification course at Universal Technical Institute for about $21,000. She got a job at military and information security company BAE Systems before even completing her course with a starting salary of about $57,000 per year. She's now a second-class welder on U.S. Navy ships in Norfolk, Virginia. Chase Gallagher, 24, began landscaping when he was just 12 or 13, he says. He registered his landscaping company, CMG Landscaping, in 2015. By 18, he had as many as 82 clients. "I just kind of looked at the numbers and said, 'Listen, I'm not going to go stop my business and pay for college,'" he says. In 2024, Gallagher's business brought in $1,085,000 in sales. He earned just under $500,000 through his salary and his owner share of the business. The average starting salary for workers in the skilled trades is about $23 per hour, according to Gusto. Electricians make a median annual salary of $62,350 per year, plumbers make a median of $62,970 per year and construction workers make a median of $46,050 per year, according to the Bureau of Labor Statistics. Despite the high costs of education, wages for college graduates still tend to be higher. The median wage for college graduates in 2024 was $80,000, according to recent data from the Federal Reserve Bank of New York. College graduates also get a median 12.5% return on their investment. President Donald Trump's latest tariffs might present some challenges for Gen Zers opting into blue collar work, says Tremper, like those opting into manufacturing or construction, for example. Trump has imposed a 10% tariff on "all countries," according to the White House, plus steeper tariffs on various products from Mexico and Canada. Canadian soft lumber, used in home construction, for example, currently has a tariff of 14.54%. "We definitely need to think that tariffs on soft lumber coming into the country will hurt opportunities for these people to work and to grow their skills," Tremper says, adding that "increased costs on home building can lead to lower demand, which will limit the amount of construction trades jobs available." Still, "in recent months, job security has been stronger in the trades than in many traditional white collar jobs," Tremper says. That's according to BLS data measuring termination rates, or people who left their jobs because of layoffs and discharges. "Industries like construction, manufacturing, and trade, transportation, and utilities have had lower termination rates than sectors where many white collar workers are concentrated, like professional and business services," he says. And with Baby Boomers slowly exiting the workforce, more opportunities could open up. "As these folks age out," says Tremper, "Gen Z workers are going to be able to move into a space where they're building their own businesses, adding to the dynamism of the economy and really providing a lot more opportunity for themselves financially."
