How Aussie side hustles are driving economic growth

Move over small businesses, Australia’s solopreneurs and side hustlers are driving an economic recovery.

According to new data from GoDaddy, a growing number of solopreneurs and micro business owners are embracing the side hustle culture to supplement their incomes and the economy is benefitting.

The study by GoDaddy and Venture Forward draws on data from over 315,000 Australian online micro businesses. The research found that as cost of living continues to bite, Aussies are increasingly turning to side hustles to make ends meet. In fact, 61 per cent of Australian entrepreneurs are running side hustle businesses alongside their full-time jobs.

Research suggests the surge in side hustle activity is facilitated by the accessibility of online tools and services, empowering individuals to launch new ventures with minimal barriers to entry.

Side hustles and financial wellbeing

What’s even more compellingis the financial success enjoyed by these side hustlers. For a modest initial outlay—nearly a third (29 per cent) of ventures were launched for under $500—many of these side hustlers are reaping significant profits. More than half (56 per cent) of side hustlers make at least $500 per month, with 19 per cent pulling in over $2,500 monthly, showcasing the significant earning potential of these ventures.

Tamara Oppen, Vice President of English Markets at GoDaddy, suggested side hustles were having a positive impact on the Aussie economy.

“GoDaddy’s Venture Forward data is unique in its ability to capture and analyse microbusinesses and demonstrates their enormous economic contribution to the Australian economy.

“Collectively, they have the power to add billions to the economy, while providing jobs, improving pay and increasing GDP in their local communities. Microbusinesses are the engine of both their local and the Australian economy,” Oppen said.

Side hustlers set sights on expansion

The study also highlights the ambitious nature of side hustlers, with eight in ten aiming to grow their ventures to the point where they can quit their day jobs.

Meanwhile, for those who have transitioned their side hustles into full-time businesses, the financial rewards are substantial.

The research reveals that two-thirds (63 per cent) of full-time entrepreneurs are generating at least $5,000 in monthly revenue, with an impressive 22 per cent exceeding $25,000 per month.

Despite the challenges, including long hours and high stress levels, the majority of entrepreneurs express satisfaction with their decision to pursue entrepreneurship. A staggering 64 per cent report that life is better after becoming an entrepreneur, underscoring the personal fulfilment and autonomy that comes with running one’s own business.

Leading the economic recovery

Microbusinesses are also emerging as a driving force behind Australia’s economic recovery post-pandemic. Side hustle culture is reshaping the entrepreneurial landscape and fuelling positive sentiments for the year ahead.

GoDaddy’s research found that Australian entrepreneurs remain optimistic about their future prospects, despite concerns about the broader economic climate. Seven in ten (71 per cent) are confident in their business’s prospects, reflecting their resilience and adaptability.

“Microbusinesses are the engine of both their local and the Australian economy.” With their unwavering determination and the right support, these everyday entrepreneurs are poised to drive Australia’s prosperity for years to come,” Oppen concluded.

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