Support needed to help side hustles become sustainable businesses, report says
A new report from eBay and Small Business Britain finds strong growth ambitions among side hustlers and calls for greater support to help them develop into long-term businesses.
Britain risks missing out on a significant growth opportunity by failing to help side hustles become sustainable businesses, according to a new report from eBay and Small Business Britain.
Research from the Small Business Institute found that almost seven in 10 side hustlers want to grow their venture, helping to create the next generation of employers and exporters. The report comes as policymakers look for ways to boost entrepreneurship and economic growth across the UK.
The findings highlight the potential impact of supporting small business growth. According to government estimates, increasing the number of growing small and medium-sized enterprises by just one percentage point each year could add £320 billion to the economy by 2030.
Almost half of side hustlers surveyed said a more reliable income would help them turn their venture into their main source of earnings. However, the report argues that banking systems, regulation and business support have not kept pace with the growing number of people building companies alongside other commitments.
To address this, the report calls for a “Micro-Business Lane”, encouraging government, banks and large businesses to “think micro first” when designing policies and support programmes.
The report also welcomes the Government’s decision to increase the Trading Allowance from £1,000 to £3,000. Researchers found that 55% of side hustlers would be more likely to invest in or expand their business if the allowance was increased.
Michelle Ovens CBE, founder and CEO of Small Business Britain, said many systems surrounding entrepreneurship were designed for a time when people typically left employment and invested their savings to start a business.
She said side hustles can provide a pathway to greater financial independence, full-time entrepreneurship, new jobs and access to new markets, adding that support systems should help founders progress rather than create barriers as their businesses begin to grow.
Eve Williams, vice president and general manager of eBay UK, said side hustling has become a mainstream route into entrepreneurship, reflecting the ambition and creativity of people across the country. She added that reducing administrative burdens and improving access to finance would help more founders turn early momentum into long-term business success.