A new report has identified the rise of so-called "necessity entrepreneurs" as almost half of Brits consider ways to bring in extra income as the cost of living continues to rise.
A new survey conducted by Mortar Research for GoDaddy has found that 48% of Brits are considering launching a side hustle in 2023; and, of these, 85% say they are doing so to manage rising costs. In fact, 58% of aspiring entrepreneurs say they won't be able to afford their bills without an extra income.
The findings suggest that the cost-of-living crisis is creating a new generation of "necessity entrepreneurs", with many turning to self-employment and side hustles to help make ends meet. Gen Z and millennials are most likely to become necessity entrepreneurs, with 75% of 18-34 year-olds saying they want to start their own venture this year; 51% of these say that the income from their side hustle will help with fixed costs, such as rent and energy bills.
Google searches for side hustles have increased 83% in the past 12 months.
Bionic has analysed data from the freelance platform Fiverr and it has found that side hustles can bring in serious cash. On average, top-selling freelancers in the UK are making £97,000 from side hustles. Highly paid side gigs include: graphic design, web design, social media design, audiobook production and ecommerce videos.
Could side hustles become the new normal?
The data highlights "just how many people now rely on freelance work to supplement their income", said Les Roberts, content manager at Bionic. "There's no doubt that a large share of UK families are in a tough position financially at the moment. Rising costs of energy, food and just about everything else are pushing people to find sources of income outside of their normal working hours. At the same time, businesses faced with tight margins are more often turning to freelancers to get work over the line, rather than committing to new hires.
"This growing freelance economy isn't likely to slow down until wages catch up to inflation, which could be well into 2023 or beyond … This could in turn make things like the four-day work week more feasible for the UK. Small businesses are the backbone of the UK economy, but it's entirely possible that side hustles become the new normal even after the economy recovers."
Written by Rachel Miller.