New data from GoDaddy Inc. , the company that empowers everyday entrepreneurs, shows that the number of ‘side hustles’ has grown by almost half in the past two years as Brits contend with the rising cost of living.
Venture Forward, GoDaddy’s landmark study of more than two million microbusinesses, 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%.
With the financial challenges of the pandemic now exacerbated by a cost-of-living crisis, many people are setting up their own companies to generate extra income. The number of microbusiness owners who were unemployed before starting their business was 5.7% in March 2020, while those in part-time work was 7.9%. These figures have risen to 7.3% and 11.7% respectively.
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.”
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 aged 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.
The demographics of entrepreneurs have also started to become more diverse. The percentage of microbusiness owners who are female has risen from 32% pre-March 2020 to 39.8% in the months since, while the proportion from minority communities has risen from 13.2% to 15.1%.
The representation of business owners from minority ethnic groups is also gradually increasing. Black founders account for 5.4% of pre-pandemic businesses and 6.6% among those created after March 2020. The corresponding figures for Asian entrepreneurs are 10.1% pre-pandemic and 11.9% after it began.
Ben Law, Head of GoDaddy UK, said: Ben Law, Head of GoDaddy UK, said, “There are 5.3 million microbusinesses in the UK but very few studies focus specifically on companies with under 10 employees. As a result, microbusinesses are under-researched, misunderstood and under-served. GoDaddy’s Venture Forward project demonstrates the importance of microbusinesses to their communities.
“The results of the 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, microbusinesses are the engine of the British economy. When they thrive, we all do.”
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