Yancey Spruill, CEO of Digital Ocean.
In recent years, the rise of side hustles has become a significant trend, driven by individuals seeking additional income and pursuing their passions. This entrepreneurial wave has been further accelerated by the profound impact of the Covid-19 pandemic and, now, by the economic uncertainties we are experiencing.
As the job market has suffered significant disruption and traditional employment has become less stable, more people have turned to side hustles as a means of financial security and personal fulfillment. This shift, coupled with the emergence of new cloud technologies and the gig economy, has transformed the way individuals approach work and opened the door for online startups to grow like never before.
According to our latest Currents report, an analysis of trends among digital SMBs:52% of respondents say they have taken up side hustles outside of their main source of income. While the majority of these side hustles are described as simple jobs that individuals can do on their own, 42% of them are either already successful stand-alone businesses or on their way to reaching that scale.
Although the gig and gig economy is not new, it is becoming increasingly prevalent, particularly among younger workers. Let’s explore why and what it means for the future of work.
The impact of technological advances
The availability and accessibility of new technologies has played a crucial role in the rapid growth and transformation of side hustles into full-fledged businesses. The onset of the pandemic and the subsequent rise of remote working highlighted the importance of digital tools and platforms.
Cloud computing, for example, has eliminated the need for costly investments in hardware and infrastructure, allowing individuals to leverage powerful computing resources and third-party software applications on-demand and around the world. This democratization of technology has leveled the playing field, allowing small businesses to compete effectively with larger, more established companies.
Technology has also opened up vast digital marketplaces that provide unprecedented access to customers on a global scale, eliminating the need for physical storefronts and reducing barriers to entry. Various e-commerce platforms have revolutionized the way individuals sell products and services, especially through the power of the cloud. Through these online marketplaces, scammers can showcase their unique offerings (whether it’s a crocheted scarf or a digital diary) to a wider audience, regardless of geography.
AI and ML are making giant strides. AI has become a transformative force, with the potential to revolutionize the way small businesses operate and interact with customers. AI-based chatbots are capable of providing instant customer support, handling queries efficiently, and ensuring a seamless user experience. Advanced AI-powered analytics tools offer valuable insights into customer behavior, market trends, and key metrics. By leveraging these insights, small businesses can make data-driven decisions that fuel their growth and improve their competitive advantage.
Cloud-based platforms have made it easier than ever to access sophisticated AI tools and ML capabilities, helping entrepreneurs automate complex tasks and optimize their operations.
A generational change
The pandemic and resulting economic turmoil have also led to a generational shift in expectations about work. Millennials and Generation Z, in particular, have been at the forefront of this change, by favoring flexibility, autonomy and more rewarding work. Entrepreneurship has become an attractive option, allowing them to create fulfilling and rewarding careers on their terms. Technology has been instrumental in this change, providing the tools and platforms necessary for small businesses to launch and grow.
The gig economy, which has seen significant growth in recent years, is only accelerating this transition. As traditional employment became uncertain, individuals of all ages (but again, overall younger individuals) have turned to self-employment, independent contracting, and gig work to fill financial gaps or explore new opportunities and passions. This gig economy provides a springboard for aspiring entrepreneurs, providing them with the opportunity to test their business ideas, build a customer base, and ultimately advance their dreams.
The uncertainties of recent years have reshaped the landscape of work and entrepreneurship, likely forever. Side hustles, made possible by the gig economy, have become a valid form of employment, and even the preferred form of employment for young people seeking financial stability, personal growth and professional fulfillment. Technological advancements such as cloud computing and, more recently, AI have made it possible – and will continue to make it possible – for these entrepreneurs to start and grow their businesses, and do so more easily than ever.
The generational shift toward flexibility and autonomy, combined with changing work expectations, has created fertile ground for entrepreneurial talent to flourish. I wouldn’t expect this to slow down anytime soon.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Am I eligible?
