A Majority of Entrepreneurs Manage Side Hustles While Working Full Time
Australia’s economy is buzzing with a side hustle culture, with many entrepreneurs dedicating several hours each week to building their businesses alongside their full-time jobs. According to a study by GoDaddy, 61 percent of entrepreneurs in Australia are engaged in side hustles, generating additional income and contributing to the economy.
The study, which analyzed over 315,000 Australian online businesses, revealed that two-thirds of side hustlers earn at least $5,000 per month from their ventures. Furthermore, nearly a quarter of them make over $25,000 monthly or $300,000 annually. These impressive figures demonstrate the potential for individuals to create successful businesses while juggling their existing work commitments.
However, achieving such returns often comes at a cost. The study found that 22 percent of side hustlers work an extra 40 hours per week, causing a significant increase in stress levels. Despite these challenges, GoDaddy’s Vice President, Tamara Oppen, recognizes the crucial role played by side hustlers in driving the local and national economy. She believes that they have the power to add billions to the economy, create jobs, improve pay rates, and increase GDP in their communities.
Interestingly, over half of the entrepreneurs who emerged during the COVID-19 pandemic have contributed to job creation and economic growth. Around 40 percent of them have employed at least one other person, highlighting the positive impact of side hustles on the economy.
The Australian Small Business and Family Enterprise Ombudsman’s office also confirms the economic significance of side hustles. In their GDP report for 2021-22, it was revealed that small businesses contributed to a 15 percent surge in the economy, reaching $506 billion. This accounted for one-third of Australia’s GDP. These figures demonstrate the vital role played by small businesses in driving economic growth and stability.
Although Australia’s overall GDP growth is considered weak, with a rate of 2.1 percent over the year to September, the country’s small business contribution is expected to continue increasing. The GoDaddy study found that 40 percent of entrepreneurs plan to hire at least one person in the next year, indicating their optimism and confidence in their business prospects. Despite uncertainties surrounding the national economy, 71 percent of entrepreneurs remain optimistic about their own businesses, and 94 percent express unwavering trust in their entrepreneurial skills.
The Reserve Bank of Australia predicts that GDP growth will remain below average due to factors such as increased living costs, higher interest rates, and increased taxes. These factors are expected to impact disposable incomes and subsequently affect consumer spending power. As a result, businesses may face challenges ahead, impacting their sales and revenue growth.
Despite these potential difficulties, side hustlers remain ambitious. A staggering 83 percent of them plan to increase their business revenue to a point where they can leave their day jobs. This determination is driven by a passion for their ventures and the desire for more flexibility in their lives. Emma, an entrepreneur who started her own custom hamper design service after losing her mother to cancer, exemplifies this ambition. She believes that if you’re passionate about something, you just have to go for it.
The accessibility of various online tools and services has empowered individuals to start their own businesses. Around 20 percent of side hustlers identified market gaps and seized the opportunity to launch their ventures. Another 17 percent started their businesses to gain more flexibility in their lives. The benefits of flexibility are evident, with over two-thirds of entrepreneurs stating that running their own business is better than working for someone else.
GoDaddy’s Venture Forward initiative analyzed the impact of online microbusinesses on the national economy and their communities. The study revealed that almost a third of side hustles were started with as little as $500, and most entrepreneurs spend less than 10 hours per week on their ventures.
In conclusion, Australia’s side hustle culture is thriving, with entrepreneurs investing their time and effort into building successful businesses alongside their full-time jobs. These side hustles not only generate additional income for individuals but also contribute significantly to the country’s economy. Despite challenges and uncertainties, side hustlers remain optimistic, driven by their passion and ambition. As they continue to contribute to job creation and economic growth, the future looks promising for Australia’s entrepreneurial landscape.
