Recent studies have shed light on a growing trend among Gen Z and Millennials towards partaking in side gigs. Statistics reveal that 53% of Gen Z and 50% of Millennials are embracing the gig economy. What’s interesting is that this trend isn’t solely driven by financial reasons. In fact, 67% of side hustlers in 2023 claim they’re pursuing their side gigs out of personal interest.
It seems that partaking in these extra jobs provides an avenue for the younger generations to explore their passions outside their regular day jobs. The sectors that have been highly favored by these generations for side gigs include digital marketing, tutoring, pet services, and selling handmade products or vintage items. While the typical income for these part-time jobs ranges between $200 and $1000 per month, it’s important to note that only 35% of respondents indicated they wouldn’t quit their day job for their side hustle. Job security seems to trump the appeal of the gig economy.
Despite the inclination towards entrepreneurship by these generational groups, a disparity becomes evident from the research. Women appear to be underrepresented in the gig economy, forming just 45% of the total respondents.
Furthermore, only 20% of participants indicated full satisfaction with their side hustle income, suggesting there’s room for improvement in the pay structures of the gig economy.
The research highlights the desire for flexibility and work-life balance as a key motivation behind Gen Z and Millennials’ turn towards part-time entrepreneurship. The inclusive and flexible nature of the gig economy seems to resonate with these generations. Additionally, the advancement of technology is facilitating this trend. With readily available resources online, these age groups can easily manage their businesses from the comfort of their homes or anywhere they find convenient.
While some, like Walmart’s Senior VP, Ashley Hubka, and HR expert, Michael Kilfoyle, believe that such trends increase earning potentials and entrepreneurial skills among the youth, independent business analyst, Sarah Markham, expresses concerns about the pressures. There are also calls for the integration of these initiatives into school curricula to ensure a balance between academic development and entrepreneurial growth.
Turning a part-time gig into a thriving business requires strategic planning, marketing strategies, financial management, compliance with regulations, customer service, and efficient infrastructure. Companies like Walmart Business are supporting young entrepreneurs with support programs, training facilities, and opportunities for networking. Despite this, it’s critical for entrepreneurs to understand the business landscape and adapt to changing trends, keeping an eye on scalable technology to support the growing needs of their business.
