Nearly one in four side hustles launched during the pandemic

Caunce O’Hara, the specialist insurance broker for freelancers and small businesses, have released the results of their survey on the growth of ‘side hustles’, referring to someone who has a second source of income in addition to their regular full-time job.
The survey looked at why these spare-time businesses have become so attractive, what hidden issues may arise from them, and what protection so-called ‘side hustlers’ are putting in place to protect themselves financially.
The insight suggests that the pandemic may have fuelled the popularity of setting up a side business as many people found themselves with more time at home. Just under a quarter (23%) of respondents stated they have set up their side-hustle in the past 12 months, with a further 40% saying their side hustle is between one and five years old.
Caunce O’Hara’s research is the latest to suggest a boom in side-hustles and the gig economy, with previous analysis by Henley Business School estimating they bring £72bn to the UK economy and as many as 25% of adults are side hustling today.
The survey, of 1000 respondents, found that more than one in four (27%) hoped their side hustle could ultimately become their main source of income, with a further 21% saying they saw it as a hobby that allowed them to make some extra money. Most respondents (51%) earned up to £1,000 a month from their side hustle, with the most popular sector to operate in named as retail, including crafts and textiles.
The amount of time spent on running side hustles varied amongst respondents, with the most common being 6-10 hours a week (26% of respondents), and 9% investing more than 30 hours a week in their side business.
Whilst side-hustle popularity continues to grow, the survey revealed a lack of awareness amongst part-time entrepreneurs of arranging insurance for their business. 43% of respondents were operating without any business insurance, 28% of whom stating they didn’t know they needed insurance or that it even existed.
Rob Rees from Caunce O’Hara, commented “The growth in side hustles shows more people are using their hobby or other skills to make extra money. Though a side hustle may seem like a good way to earn more cash by doing something enjoyable, things can quickly go awry and, without insurance cover in place, an unexpected claim can affect the longevity of a new or small side business.”
Rees continued: “The findings suggest a lack of awareness of the importance of insuring side-businesses; as a specialist business insurance broker, we’ve seen claims made against businesses of all sizes and without the right cover in place, part-time entrepreneurs run the risk of being left with a hefty bill for legal fees, and potentially compensation payments, in the event of a claim.”