In 2023, the number of small businesses created by founders who already had a job nearly doubled compared to the previous year. A new survey of 1,345 business owners from payroll company Gusto found that 44% of new businesses in the US started as side hustles in 2023, up from 27% in 2022. The survey also revealed that a quarter of respondents were working full-time day jobs while starting their companies and 19% were working part-time jobs.
According to Liz Wilke, principal economist at Gusto, uncertainty around which way the economy is going made people hesitant to give up something they’ve got in order to go for something they want. However, she said hybrid and remote work could give employees the space and time with the lack of a commute to explore their entrepreneurial potential. Additionally, generative AI tools like OpenAI’s ChatGPT may have helped business owners set up their ventures and develop products faster last year. The survey showed that more than 20% of new companies are using generative AI tools and over 76% of them are using it for marketing. A smaller number (41%) are using AI to better communicate with sales leads, and 26% are using it for customer service.
Wilke stated that while AI may not be accounting for all of the jump, she wouldn’t be surprised if side hustlers weren’t really using some generative AI tools to cut down on the time commitment required at the very start of a business when they’re just trying to get their brand out and build some revenue streams.
Younger workers were more likely to start a business as a side hustle according to the survey. Nearly half (49%) of founders aged 25-34 years old were working for someone else while starting their own businesses while over half (51%) was still working for that company at the time of the survey. In comparison, only 42% of those aged between 35-44 years old said they had a job while starting their companies and only 38% aged between
