The number of small businesses founded by founders who already have jobs nearly doubled from 2022 to last year.
In 2023, 44% of new businesses in the U.S. will start as a side hustle, up from 27% in 2022, according to a new survey of 1,345 business owners by payroll company Gusto.
A quarter of respondents said they were working a full-time day job while starting their company, and 19% said they were working part-time.
Liz Wilke, Gusto’s chief economist, told Bloomberg: “The uncertainty about what direction the economy is going to make people a little bit wary of giving up what they have to get what they want.” It became,” he explained.
Wilk said hybrid and remote work could give employees the space and time to explore their entrepreneurial potential without having to commute.
Related: How to get the most money from your side hustle this tax season, from the expert who raised $75.2 million to make filing easier.
Generative AI like OpenAI’s ChatGPT, which debuted in November 2022, could also have helped business owners launch ventures and develop products earlier than last year.
The study found that more than 20% of startups use generative AI tools, and 76% of them use them for marketing. A minority (41%) are using AI to improve communication with sales reps, and 26% are using AI for customer service.
“I do not think so [AI is] “It explains everything about the jump,” Wilk told FOX Business. “But I wouldn’t be surprised if side contractors weren’t using generative AI tools to actually cut down on a lot of the time required at the start of a business.” If you are just trying to promote, gain reputation and build a source of income. ”
Related: Nostalgia for his hometown inspired this insurance agent to start a side hustle – and now he makes nearly $40,000 a month.
The younger the worker, the more likely they are to start a business on the side. The study found that almost half (49%) of founders between the ages of 25 and 34 worked for someone else while launching their business. More than half (51%) of that age group were still employed at their company at the time of the survey.
In contrast, 42% of those in the 35-44 age group, 43% of the 45-54 age group, and 38% of the 55+ age group said they had a job while starting their business.
