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Will Increase Of Side Hustles Help Cost Of Living Crisis ?

By 13 April, 2022September 28th, 2022No Comments

As the cost of living rises in the United Kingdom, new data from GoDaddy Inc. , the company that empowers everyday entrepreneurs, shows that the number of ‘side hustles’ has grown by almost half, 49%, in the past two years.

A third (31%) of businesses with under ten employees are now run as ‘side hustles’

Landmark study shares micro business data

Venture Forward, GoDaddy’s landmark study of more than two million micro businesses, reveals how the make-up of entrepreneurs has changed since the start of the pandemic. One of the most striking statistics is the increase in business owners who are also in separate, full-time employment. Prior to March 2020, this figure was 20.8% but has since risen to 31%.

While people were furloughed or living at home rather than university during the pandemic they had the opportunity to research and implement business ideas that they might have had for some time. Many people reduced their spending because they were unable to socialise as they had before. They could afford to invest a small amount of money in a start-up business that once they returned to work or study could generate them an additional income. With the financial challenges of the pandemic now exacerbated by a cost of living crisis, people are holding down full-time jobs while running their business ‘on the side’.

Side Hustles are on the increase in the Under 35s

The increasing number of side hustles in Great Britain appears to have had a major impact on the age of the country’s entrepreneurs. The percentage of start-up owners under 35 has more than doubled since March 2020, rising from 16.4% to 34%. Among this group, the proportion aged 18-24 has soared from just 1.7% pre-pandemic, to 8.6% in the two years after the Covid-19 outbreak. It would be interesting to look at further evidence of why such a huge increase has taken place. Are this age group inspired by the portrayal influencers give on social media platforms rather than the reality of running a micro business ?

Ben Law, Head of GoDaddy UK, said:

There are 5.3 million micro businesses in the UK but very few studies focus specifically on companies with under 10 employees. As a result, micro businesses are under-researched, misunderstood and under-served. 

“The results of our Venture Forward research show that many people are turning to enterprise out of economic necessity and to earn extra cash. The important thing now is that these entrepreneurs are supported and can flourish. After all, micro businesses are the engine of the British economy. When they thrive, we all do”

Cameron Langston, 22, from Plaistow, East London, works part-time as a postman. The young entrepreneur started Bark + Shout, a pet accessory company, during lockdown in April 2021 to supplement his income:

“I started Bark + Shout as I didn’t have a clear career path and needed a way to make extra money. My day job helps pay the bills and while I try to reinvest the extra income from Bark + Shout back into the business to help it grow, it’s certainly helpful to know it’s there. Running the business fully online means I can reduce costs and build a business with a long term trajectory. The success we’ve had so far means I’m hoping to be running Bark + Shout full time by the end of the year”

To produce and analyse the Venture Forward data, GoDaddy partnered with Professor George Saridakis, Professor of Entrepreneurship and Small Business at Kent Business School. 

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