Almost a quarter of adults earn additional income through a side-hustle or side-business. A fifth of the creator economy earn an extra £200 to £500 each month.
The day job is set to become a thing of the past as nearly two-thirds (64%) of entrepreneurs plan to make their ‘side-hustle’ their main income, signalling the boom of the creator economy, according to our new research.
We found that the popularity of the side-hustle has grown rapidly since the start of the pandemic with almost a quarter (23%) of adults now earning additional income through a side-business. Of the new creator economy, 55% were found to be Gen Z (aged 18-23), followed by 36% in Gen Y (aged 24-38) and 22% Gen Xers (aged 39-54). The figures demonstrate the UK’s entrepreneurial generation coming to the fore, with video game streamers, social commerce sellers and content creators alike empowered to fulfil their life-long passions.
The importance of the side-hustle cannot be underestimated with a third (32%) of creators revealing they would financially struggle without this additional income. This is supported by the fact that a fifth (20%) of the creator economy earn between £200 to £500 from their entrepreneurial efforts, while one in eight (13%) earn over £500 extra a month.
While the majority of the creator economy want to leave their day job and follow their passion - a fifth have plans to do this within the next six months - entrepreneurs face significant challenges in managing their various income streams. Nearly three-fifths (57%) stated it was difficult to take and track payments, with many current solutions causing delays and enforcing significant transaction fees.
Luke Massie, CEO of VibePay, said: “There is a misconception that the creator economy earns a bit of extra cash on the side, when in reality these social entrepreneurs are running businesses with huge customer bases and loyal followers on platforms such as Twitch and TikTok and social commerce sites like DePop and Etsy.
“Entrepreneurs in the creator economy have ambitious plans in the future to make their passion their full-time income, but they are facing outdated solutions, unfit for individuals with multiple income streams and a wide audience. These digital-first entrepreneurs need value-add, personalised experiences where they can interact with their audiences in new ways. Importantly, they need to be given the tools to receive payments on time without losing a large proportion of their revenues to the middlemen. For entrepreneurs this can be the difference between making their business viable full time, which is why it is critical that fintechs such as VibePay address this issue.”