Despite an uncertain economy and recent redundancies from big-tech firms, it is still a challenge for founders to find the best people for their startups. But the rise of the side hustle and side hustlers could provide a source of promising talent for skills-hungry, growing businesses.
The UK has seen a marked increase in people taking on second jobs, partly spurred by COVID-19 and the cost of living. In July 2022, Barclaycard reported that 42% of Gen Zs and 39% of millennials now have a side hustle.
While people often take up second jobs out of necessity, they are often created by monetising an activity or hobby that the individual enjoys, that can fit around a regular job, school or a degree course.
Side hustlers have a great mindset in terms of creativity and goal setting. Shardai Cosgrove, CEO and founder of fintech startup Fintellity, says: "If you're the kind of person that's doing a side hustle, whether that's to tackle debt, or for a potential savings goal, you are somebody that sees problems from multiple perspectives, or you see multiple solutions to a problem. That translates well into a startup, where you have people who can turn a problem into an opportunity.
"The kind of mindset they have is great for the culture of a startup, because they can see the possibilities. But also from a financial and KPI perspective, if they're side-hustling for a specific reason, says to save up a deposit on a house, they have clear financial goals, which they've broken down and thought that this certain activity would achieve this specific goal over this period. They're thinking about objectives and milestones."
If you're the kind of person that's doing a side hustle, whether that's to tackle debt, or for a potential savings goal, you are somebody that sees problems from multiple perspectives.
Taking on a second job also indicates a considerable sense of drive and purpose in an individual, given that this work is often taken on over and above regular working hours. But side hustlers present an element of flexibility to a startup employer. When a full-time role might be expensive or when only a limited number of hours are required, plenty of people are eager to get experience in a startup.
For some candidates, working with the startup is the side hustle, Shardai says. "It's a way of getting a foot in the door working in a startup, understanding it from the bottom, growing with it, and absorbing as much business knowledge as possible. So for a student or somebody starting at the beginning of their career, it's a good side hustle. Go and work at a startup, go as an intern, convert, get that experience, get a small salary, grow and learn."
She believes many people, even within the startup community, are not fully aware of the side hustle movement and the potential benefits it can bring to the startup ecosystem. The generation doing their GCSEs and A-levels and degrees are fully into side hustles; often inspired by social media, they're aspirational with a sense of the possible and naturally entrepreneurial. Furthermore, they tend to be tech and social media savvy with an innate understanding of the channels startups use to reach their customers.
It is not uncommon among university students to find some of them drop out of their courses solely because they believe that the side hustle they have taken on to pay for their tuition fees and living costs is providing a greater prospect than their degree course.
For founders looking for talent, candidates with a successful side hustle experience might be a key attribute even if they do not possess the full complement of desired skills. Alongside drive and ambition young side hustlers often have a growth mindset; they are naturally bootstrapping and adept at learning and acquiring new skills.
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