As the cost-of-living crisis persists, more than half (55%) of Australians are considering starting a small business in the next five years, driven by younger generations, according to a recent survey by Small Business Loans Australia. Specifically, 38% would start a side hustle and 17% would start a small business for their sole income. Overall, 68% are motivated to top up their income.
The research found that the younger the age group, the more likely they are to start a small business for their main income in the next five years or a side hustle to complement their income. Half (51%) of under-25s would start a side hustle, closely followed by 49% of 35-44-year-olds.
Small Business Loans Australia investigated the motivations among respondents, offering them seven reasons for starting a small business: better income, desire for more control and independence over their career growth, work-life balance, opportunity to fill a market gap, to create work they enjoy, opportunity for creativity, and to leave toxic work cultures or bosses.
Few respondents were driven by market opportunities or filling service gaps at 19%. Instead, 68% of respondents are motivated to improve their income, followed by 56% who are looking to enjoy their work. Achieving work-life balance motivated 48%, while 37% are seeking career control and creativity. Only 14% aimed to leave a toxic work environment.
The desire for better income is driven by 25 to 44-year-olds, who are more likely to have mortgages and families. Three quarters (74%) of respondents aged 35 to 44 chose this reason, followed by 72% of those aged 25 to 34.
The desire for more independence and control over careers was important to Aussies starting out in the workforce. An equal 44% of 18 to 24-year-olds and 25 to 34-year-olds valued this compared to just 24% of people aged 55 to 64, who are more likely to be at the height of their career or nearing retirement.
Small Business Loans Australia founder and managing director, Alon Rajic said, “Overwhelmingly, Australia’s high cost of living is driving the motivation behind a desire for an additional income. With financial pressures mounting and no sign of easing, people realise they need to find ways to meet their living expenses.
“Small businesses enable them to earn more in the hours available around their main job. 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.”
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