Has COVID-19 sparked a rise in the side hustle economy?
The global pandemic has put the economy into turmoil. With around 9.6million job roles furloughed and over 190,356 made redundant as a result of COVID-19 and the subsequent economic downturn, many are waiting to return to work or are still seeking alternative employment.
At a time of such unprecedented uncertainty, with higher powers dictating our options when it comes to employment, some of those left in a state of limbo shrewdly made use of the extra time to reflect and seized the opportunity to create their own slice of income.
The rise of the side hustle economy
Even before the lead-up to lockdown, the humble side hustle was in the limelight. Millennials particularly have sought extra-curricular income to keep on top of rising living costs by launching an additional business venture on the side of their day job.
Back in 2018 Henley Business School estimated that side hustles generated around £72 billion for the UK economy. That number is only set to rise in the wake of the pandemic as a recent study conducted by GoDaddy cited that one in five people considered setting up a new business venture during lockdown.
One such millennial was Hinterlands Beard Oil Founder Josh Overton. While working full time as a Product Designer, he experimented with making organic beard oils in his spare time.
“Before the lockdown I made the beard oils primarily for myself and sold offline to a few friends occasionally.
Then all of a sudden, we all found ourselves stuck at home pretty much 24/7. Once the lockdown hit I decided it was long overdue to try and launch this as a side hustle for real.”
Making waves while flattening the curve
Whether it was pivoting an existing business to fit around the changing consumer needs during lockdown, or simply channelling a deeper creativity, many Living Room entrepreneurs have emerged from these times of crisis with new and forward-thinking ideas. Forming business strategies which have found relevance as a result of the unprecedented circumstances we now inhabit, many entrepreneurs who have launched a new business during the pandemic have carefully considered the very new set of consumer needs. During this time we have seen some truly astute individuals who have completely pivoted their priorities to react to a totally new age of customer experience.
At a time of turmoil for the Events and Hospitality industry, Founder of Cock and Tail drinks, Fred Campbell flexed his business to launch a new cocktail delivery brand at a time when events were strictly off-limits.
“Customers are reviewing their priorities now and are looking to support those who are being creative or are pivoting their strategy in times of crisis. If you’re present and active on all your channels rather than waiting to see how things pan out you stand yourself in good stead for the longer-term simply by being proactive as well as reactive.”
Founder of Bunhead Bakes, a baked goods delivery brand serving South London, also found this new calling during the pandemic:
“I was delivering bakes and stuff to friends and family at a distance and then someone suggested I start selling them so I put an ad out on Instagram, my sister designed the logo and it’s just shot off from there really. Now I’m delivering sourdough buns and more to your door all across South London.”
These businesses born during an economic downturn are said to be more resilient. Designed to thrive in times of crisis, they pave the way for the future of small businesses and often flourish in the long term. Here’s hoping the new wave of gritty, future-proofed small businesses are set to emerge from the ashes unscathed.
If you launched a new venture during lockdown, or you’re planning ahead with a new side hustle, check out how Coupay could help you take payments faster and securely with our smart bank transfer link.
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