The number of small businesses created by founders who already had a job almost doubled from 2022 to last year.
A new survey of 1,345 business owners by the payroll company Gusto found that 44% of new businesses in the US started as side jobs in 2023, up from 27% in 2022.
A quarter of respondents said they worked full-time while starting their companies, and 19% worked part-time.
“Uncertainty about how the economy is doing has made people a bit leery of giving up something they have in order to go for something they want,” Gusto chief economist Liz Wilke explained. Bloomberg.
Hybrid and remote work can give employees the space and time without a commute to explore their entrepreneurial potential, according to Wilke.
Generative AI, such as OpenAI's ChatGPT, which hit the scene in November 2022, could also have helped business owners scale their ventures and develop products faster last year.
The survey showed that more than 20% of new companies use AI generation tools and 76% of them use them for marketing. A smaller number (41%) are using AI to better communicate with sales leaders, and 26% are using it for customer service.
“I don't think (AI) is responsible for all the jumping,” Wilke said FOX Business. “But I wouldn't be surprised if tourists didn't really use some generative AI tools to cut out a lot of the time commitment required in starting a business when they're really just trying to get their brand out there. . a reputation, build several streams of income.”
The younger the worker, the more likely they are to start a business as a side hustle. The survey showed that nearly half (49%) of founders aged 25 to 34 worked for someone else while starting their businesses. Over half (51%) of that age group were still working for that company at the time of the survey.
In comparison, 42% of the 35-44 age group, 43% of the 45-54 age group, and 38% of the 55-and-over age group said they had a job while starting their companies.