Side Hustles, Businesses

Side Hustles Surge: Entrepreneurs Are Launching Businesses Alongside Full-Time Jobs

A significant rise in the number of entrepreneurs initiating small businesses while holding down other employment commitments.

A recent report by Entrepreneur revealed a significant rise in the number of entrepreneurs initiating small businesses while holding down other employment commitments.

According to a survey conducted by payroll company Gusto, the prevalence of new businesses originating as side hustles nearly doubled from 2022 to the following year. Gusto’s principal economist, Liz Wilke, attributed this surge in side hustles to economic uncertainty, stating to Bloomberg, “Uncertainty around which way the economy’s going made people a little skittish to give up something they’ve got to go for something that they want.

Wilke also highlighted the impact of hybrid and remote work arrangements, suggesting that the flexibility afforded by these setups gave individuals the time and space to explore their entrepreneurial aspirations.

“I don’t think [AI is] accounting for all of the jump,” Wilke stated to FOX Business. “But I wouldn’t be surprised if side hustlers weren’t really using some generative AI tools to cut a lot of the time commitment that’s required at the very start of a business when they’re really just trying to their brand out, get a reputation, build some revenue streams.”

The survey, which included 1,345 business owners, unveiled that 44% of new ventures in the United States commenced as side projects in 2023, marking a substantial increase from the 27% reported in 2022. A notable portion of respondents, 25%, indicated that they were maintaining full-time positions while embarking on their entrepreneurial journeys, while 19% were balancing part-time employment alongside their new ventures.

The emergence of generative AI tools, such as OpenAI’s ChatGPT, has further facilitated starting businesses, enabling entrepreneurs to expedite product development and streamline operations. The survey revealed that over 20% of new companies leverage generative AI tools, primarily for marketing.

As recently reported by BLACK ENTERPRISE, Atlanta was voted the top city for starting a business in 2024.

According to Jaime Seale, author of “2024 Data: What Are the Best Cities to Start a Business?” Atlanta has notably improved its standing as an entrepreneurial hub in recent years. Seale indicated that Atlanta ascended from its previous No. 5 ranking, trailing behind Las Vegas, to a more prominent position.

Home Bay, which conducted the study, cited Atlanta, Miami, Orlando, Tampa (all in Florida), and Austin, Texas, as the top-ranking cities for business startups. Conversely, the study identified Providence, Rhode Island; Hartford, Connecticut; Buffalo, New York; Milwaukee, Wisconsin; and Louisville, Kentucky, as the least conducive environments for new businesses.