With the rising cost of living, more Australians are planning to start small businesses or side hustles within the next five years, driven largely by younger generations.
A recent survey by Small Business Loans Australia revealed that 55% of Australians are considering launching a small business, and 38% intend to run a side hustle alongside their current jobs.
The survey found that 68% of Australians are motivated by the desire to increase their income.
“Overwhelmingly, Australia’s high cost of living is driving the motivation behind a desire for an additional income,” said Alon Rajic, founder and managing director of the platform.
The younger demographic, particularly those under 25, showed the strongest interest, with 51% considering starting a side hustle.
Meanwhile, 49% of individuals aged 35-44 are also planning side businesses, likely driven by the financial demands of mortgages and family responsibilities.
The Australian living cost indexes indicated increases between 3.7% and 6.2% in the past year, largely due to spikes in food, housing, and insurance costs.
With 71% of people reducing their intake of fresh food and 51% on income support skipping meals, many are seeking additional income streams to cope.
While 68% of respondents are primarily driven by financial goals, other motivations include enjoyment (56%), work-life balance (48%), and the desire for greater career control and creativity (37%).
However, only 14% cited escaping toxic work environments as a reason for starting a business.
Independence and career control are particularly important to younger Australians.
Around 44% of respondents aged 18-34 valued these factors, while older workers aged 55-64, more established in their careers, were less likely to prioritise them (24%).
“Small businesses enable them to earn more in the hours available around their main job,” Rajic said. “There is a certain amount of freedom and flexibility in small business, and that’s essential when you are starting something new and working around other employment.”
For more detailed results, including state-by-state data and insights into motivations across age groups and genders, visit Small Business Loans Australia.
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