The impact of the ‘side hustle’ on businesses and young entrepreneurs
6/11/2019 - Fresh Student Living
As the UK continues to see a shift in what people are prioritising when looking for a job, research from social media platform Pinterest reveals that ‘side hustles at home’ has increased in search by 690% this year alone.
In light of this, Fresh Student Living has looked into how the increasing trend of the ‘side hustle’, and the growth of the young entrepreneurs, has impacted businesses.
Instability of the job market has become less than desirable
Driven by a combination of passion and practicality, and as a response to decreased stability offered in the job market, research reveals that 3 in 10 full-time employees are planning to leave their jobs by the end of 2019, and just over a quarter of Brits (26%) want to start a business at some point.
Almost half (46%) of those aged under 35 are aiming to start a business in the next few years. However, of this age group, studies show generation Z are paving the way and most likely to start a business compared to any other age group, with 16% aiming to be self-employed this year, failing that quarter of this age group said they still planned to start a business in the next few years. This was closely followed by Millennials with 1 in 5 saying the same thing.
Flexibility and freedom continue to be driving factors to create a good work-life balance
Although flexibility is important at all ages, young people continue to opt for the freedom that comes with it when seeking employment, while their older counterparts aspire to have a better work-life balance, and in some cases believe their careers are shaped by their employers.
Nonetheless, the popularity of the ‘stable 9-5’ continues to decline as younger generations entering the workforce continue to prioritise creating a schedule that works for them, fitting work around any studies or social events they may have.
Where Are Most Young Business Owners Based?
Despite assumptions of London being a business hub, the highest percentage of young people looking to start their own business in 2019 are located in Northern Ireland, at 18%, while only 13% are in London and 10% in the West Midlands.
The Rise of the “Side Hustle”
Many business or freelance jobs start off as a project, or ‘side hustles’, on the side, and is particularly popular with students as it could help with income. The side hustle is the new way many people, particularly those studying go about starting a business, and in 2017, UK workers generated £72bn for the UK economy through their side hustles, accounting for 3.6% of the country’s GDP.
Research conducted by a division of Santander, dedicated to funding small businesses and students, also found that student entrepreneurs in the UK have a turnover of £1bn.
Unsurprisingly, 50% of people who start a side hustle do so because they need the extra money, despite still not making enough to cover living costs, although many start a side hustle to follow their passions or explore a new challenge.
Side hustles helping skill up the future generations
A degree, although desirable and in some cases, a mandatory factor for some professions isn’t always a ‘must-have’. Looking into the differences between working generations Instant Offices also found that 40% of employers admit to relying on younger employees and graduates who are digitally native, for their digital and tech skills, as they are equipped with the skills that older generations are not.
Popular side hustles in the digital era:
- Monesised Instagram presence
- Physical products sold online
- Affiliate marketing
- Creative Services such as design or photography
- Gig Economy services
- Consulting, coaching, tutoring
- “Digital products” such as ebooks, online courses and stock imagery
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