WHY YOUNG BRITS SAY BALANCING WORK WITH SIDE HUSTLES IS ‘FUTURE OF WORK’
Three quarters of people in the UK believe running multiple side hustles alongside employment is the future of work.
That’s according to new research from accountancy tech provider Sage, the global leader in accounting, financial, HR and payroll technology for small and mid-sized businesses (SMBs), which found that 75% of people in the UK see running a number of money-making enterprises at the same time as holding down a 9-5 job as the new normal – with one in five (19%) running more than one side hustle alongside their day job.
The trend, driven mainly by Gen Z and Millennials, sees nearly half of people (45%) using additional income from their multiple side hustles to cover day-to-day living expenses.
According to the research by Sage, the average side hustler earns £2,337 per month after tax from employment and boosts their salary by an extra £590 a month from their side hustles – close to £7,000 a year.
Others use the money they generate to top up their savings (38%), pay for holidays (30%) or reinvest in their side hustle (29%). Nearly a quarter (24%) reinvest their earnings back into their side hustle.
Natalie Glaze – Founder of Stay Wild Swim and By Glaze, who set up her businesses as side hustles in 2018 and 2021 respectively, said: “I started both of my businesses as side hustles while working full-time, so I understand the hard work and passion that goes into balancing a main job with other ventures”
“I agree it could be the future of work. Side hustles are the perfect way to dive into something you love without the risk of quitting your day job – and in today’s economy, they’ve become a crucial way to start a business with the safety net of a salary.
“My journey with Stay Wild Swim and By Glaze has shown me how valuable it is to have the right tools at your side, like Sage’s support for self-starters and small business owners. With a system that simplifies taxes and financial tracking, I can stay focused on growing my business.
It’s exciting to see that so many people now see side hustles as the future of work, and I can’t wait to see what’s next for this generation of entrepreneurs.”
While seven in 10 (71%) view their side hustle as a source of financial freedom, whether or not an individual has ambitions to take their side hustle full-time is largely age dependent: 66% of 16-24 year-olds want to, compared to just 23% of over-55s.
Yet Sage reports a majority of side hustlers (63%) would keep their main job no matter how successful their business became – with their side hustles seen as a counterweight bringing ‘joy and personal fulfilment’ alongside employment.
Dropshipping or reselling is by far the most popular side hustle for nearly a quarter of people (24%), followed by freelance writing (15%) and handmade products (14%), IT/ tech support (13%), custom products (12%), and consulting (12%).
Income streams from side hustles are now so high that half of 25-34-year-olds have sought help from an accountant or accounting software to manage their cash.
Grace Hardy, founder of Hardy Accounting, said: “As a Gen Z accountant, I’ve seen firsthand how our generation is embracing side hustles to build new income streams. We’re balancing everything from freelance work to digital reselling alongside our main jobs.
“Tools like Sage are game-changers for us – they make keeping up with finances easy, which means we can spend more time creating and less time worrying about the numbers.
“With so many of us wanting to turn our side hustles into something bigger, having tech that simplifies admin and taxes is crucial. I love showing my followers that managing your finances doesn’t have to be stressful – with Sage, you get the support you need to focus on growth, whether you’re making an extra £500 a month or preparing to go full-time.
“It’s not just about the money; it’s about pursuing passions and building something meaningful for the future.”
Nikola McNicol-Kenney, VP Small Segment UKI at Sage said: “If you’re just starting out, have a few side hustles, or are a seasoned small business owner, Sage has the tech to meet your needs.”
“We have accounting tools that take the stress out of keeping you compliant with the latest changes – such as the government’s Making Tax Digital initiative – and help you make your side hustle pay, letting you get on with the stuff you love!”
The boom in side-hustles is also having an impact on the world of employment as people seek to balance their main job with their entrepreneurialism, rather than using their side hustle as a way to exit the workplace.
Almost two thirds (58%) of under 34s have made changes to their working hours to make time to invest in their side projects. Employers seem willing to accommodate this cultural shift. Over four in 10 people (43%) say their boss has allowed them to make changes to their working hours in order to accommodate their side hustle(s).
Summary of Key Findings from Side Hustles Polling
- Side Hustles as a Pathway to Full-Time Business
- 51% of respondents see their side hustle becoming their main source of income in the future, with younger demographics especially optimistic: 66% of 16-24-year-olds and 63% of 25-34-year-olds.
- 67% use their side hustle as a “tester” to gauge whether it can grow into a full-time venture, with this approach even more prevalent among 74% of 16-24-year-olds and 83% of 25-34-year-olds.
- While many dream of scaling their side hustles, 63% would still keep their main job even if their side hustle took off. This suggests that most see side hustles as complementary to employment rather than a replacement. The desire for stability varies significantly by age, with younger demographics showing a much higher likelihood of pursuing their side hustle as a full-time business.
- Among sole traders, 32% started their businesses as side hustles intending to grow them into full-time ventures.
- Financial Management and the Role of Accountants
- 36% of side hustlers have used an accountant or accounting software, with higher usage among younger demographics: 43% of 16-24-year-olds and 50% of 25-34-year-olds.
- While 62% understand the benefits of using accountants or accounting software, 56% still believe these tools are primarily for larger businesses.
- 69% of sole traders who use accountants report improved business performance, citing better cash flow management, profitability insights, and easier tax preparation.
- Income, Time Commitment, and Motivation
- Side hustles contribute 17% to total monthly income on average, with participants dedicating about 10 hours per week to their ventures.
- Earnings are primarily used to cover living expenses (46%), save for the future (38%), or reinvest in the business (29%).
- 63% would keep their main job even if their side hustle took off, suggesting a trend towards multiple income streams over reliance on a single source.
- 62% find more joy and fulfilment in their side hustle than in their main job.
- Government Support and Resources
- 50% of side hustlers are aware of government support for small business owners, but only 45% believe the support is sufficient. Awareness is higher among 57% of 16-24-year-olds and 62% of 25-34-year-olds.
- 58% would be more inclined to grow their side hustle into a full-time business if government resources were more accessible, with 65% of 16-24-year-olds and 74% of 25-34-year-olds supporting this.
- Sole Traders and Lessons Learned
- Sole traders transitioning from side hustles wish they had been better prepared for work-life balance (33%) and understanding taxes (29%).
- Main reasons to consider professional financial assistance include tax complexity (45%) and lack of time (43%).