This observation looks at how GenZ’s are augmenting their income in order to be able to meet their basic financial needs. The insights in this observation indicate that this generation is having to balance their 9-5 job (aka main gig) and also find alternative streams of income (aka side hustles) to make ends meet.
What do these insights from the 30/30/30 Project mean for the job market as well as for the future of this generation? Are there enough jobs or side hustle opportunities to go around? Especially considering that Africa has a youth bulge that falls squarely within this generation?
Continue reading to find out.
What we learnt:
14 out of the 30 interviewees have side hustles. This situation points to the high cost of education.
These entrepreneurial-minded students continue their side hustles during employment or turn them into full-time businesses. Many of the side hustles from all three groups suggest they are studying or currently working to pay the bills while biding time until they can afford to turn their side hustle into a full-time job. This approach is evident in many cases where the ‘dream job’ stipulated differs from what they are studying.
“I’m an academic, but also, I actually think I see myself in the showbiz sector, like being either a football coach or a sports analyst. So yeah, that’s my ideal dream job, but the economy doesn’t allow for that. What I do on the side [to bridge the gap between these two careers] is that I’m taking these short courses. I’m doing a short course on being a sports analyst. I watch soccer a lot so that I can actually see what I’m learning and what it’s like in reality. I attend a whole lot of sports events. Especially soccer, because that’s my core focus because there aren’t many women in soccer who do that. So I’m also trying to break through this niche market as well. So yeah, there’s a lot of networking with the right people as well. That goes into all of this. Yeah. So that’s what I’m doing on the side.” – Lerato* (27, Black, female, working as a financial accountant but dreams of being a sports presenter)
[My dream job] is anything in the entertainment industry. Right now that’s like one of our biggest industries with the most income. And I really love presenting and promoting and stuff like that. So I really, really want to be in that kind of space. [To bridge the gap between my pharmaceutical studies and being a presenter] I want to grow my TikTok a lot because I feel like that’s where brands mostly come to you. And in that way they see you. And that’s how they approach you to do little stuff for promoting and presenting. Because I was watching another YouTuber’s journey. And the way she got her presenting job is she grew her YouTube channel. And then they said, please come and audition for the specific role and stuff. And I’m also talking to one of my or my mom’s friend’s daughters. And she said, See, there’s always auditions happening like Channel O and MTV and all of that. They’re always looking for new people and new faces. And she said she’ll let me know whenever there’s those kinds of auditions. But she said those things need you to live in Joburg, mostly. And I’m currently in Durban. So probably. And also, I’ll probably try and do like all those auditions when I have a more flexible schedule to move to Joburg and all of that.” – Oratile* (20, Black, female studying full time a Bachelor of Science degree in Pharmaceuticals but dreams of being a presenter)
“Because of the backgrounds we come from, we don’t get allowances from our parents. So it became a thing that a student has to have a side hustle, either you’re working or you have a business that can generate some money for bread. Or, you know, little stuff, little things. And to just improve your mental health man, just go for an ice cream. You’ll need that money for going out for an ice cream, coffee, meeting people and being good.” – Luckiness* (Black, female, studying full time for a Bachelor of Commerce degree in Accounting with a nail business as a side hustle)
“So I see side hustles as this generation. if I had a label it would be “the natural born customers”. It’s in them and pairs well with their personal branding. And I think on an idealistic level, if they had it their way, their hustle would become their main gig. That’s where they lean to. They’ve looked at YouTubers and influencers and seen how if you get your personal brand right and your hustle matches it, that could become your thing. So they’re almost on an idealistic level hoping that that would be the end picture. So the employer’s almost like insurance. I get my bills paid, one day I’m getting my hustle to probably take off. Then there’s the other layer around necessity. So maybe I’m in a job and it doesn’t provide as much as I want to. I do have a hustle and so that’s my top-up. So that helps me to live the lifestyle that I want. Or I need to be able to provide for the rest of the family, the extended family. And so it’s part passion, but also part of the lifestyle and part necessity.” – Ronen Aires
| Side hustle business | |
| Promotions | 2 |
| Tutoring | 2 |
| Construction and renovations | 1 |
| Creative agency | 1 |
| Driving | 1 |
| Events | 1 |
| Influencer marketing and copywriting | 1 |
| Influencer, Promotions | 1 |
| Luxury concierge lifestyle management business | 1 |
| Nail business | 1 |
| Photography | 1 |
| Selling boats | 1 |
| Selling used items from old people | 1 |
Many of the side hustles involve marketing and media.
What does the research/experts say:
According to a survey of 6000 young South Africans by short-term lender Wonga, over 45% of respondents aged 25-34 are pursuing a Side Hustle. Furthermore, up to 60% of people earning less than R10 000 a month have taken on a side hustle. According to a May 2023 Bankrate survey of 2,505 US adults, almost two-fifths of Americans have one side hustle. 40% of Gen Z in the US have both a job and a side hustle, according to a 2023 report from EY. More than two-thirds of Gen Z (68%) earn money from side hustles in the UK, according to Finder.com – an independent comparison platform and information service on credit cards, bank accounts, and investing apps – as of January 2024.
According to a Wonga survey of more than 6000 survey youths (image below), many of the most popular side hustles are digital – online trading, teaching online, web development, taking surveys, etc. There are low barriers to entry for these digital side hustles. Being an influencer doesn’t feature prominently in this word cloud, suggesting that South African youth, unlike their Western counterparts, do not see being an influencer as a reliable side hustle.
Above: A word cloud of some of the most popular side hustles in SA.
Responding to a Wonga survey, more than 6,000 survey youths shared details about their side hustle, which is an additional undertaking that a person takes in addition to their primary job.
It makes sense that side hustles are more commonplace among lower-income groups because their fixed income is not enough. “The number [of South Africans with side hustles] is significant, and more than likely reflects the devastating impact of rising inflation, cost of living increases, and higher interest rates,” says James Williams, Head of Marketing at Wonga. “Things have changed to be able to just afford the normal stuff in suburban middle-class America. You have to do extra stuff to do that,” says Colin Stroud, a 24-year-old living in Ohio.
However, there is a small percentage of higher earners that have side hustles as well. According to the Wonga survey, 2% of people with a side hustle earn over R20 000 per month, with 0.3% earning over R40 000 per month, presumably because they are attempting to make their side hustle their full-time occupation or a signal of distrust of employers. We are likely to see these percentages rise going forward.
In many instances, the side hustle represents their passion, while the full-time job is there to pay the bills. In the US, 57% of Gen Z is willing to abandon the standard 9-to-5 entirely to become a social media influencer, according to a Morning Consult survey (June 2023 ). Research also shows that many plan to always have a side hustle. Young Americans are in their side hustles for the long run. 48% of GenZs and Millennials with a side hustle plan to always have one, according to a January 2024 survey by Lending Tree – a US loan finding marketplace.
What can businesses and policymakers do about this?
For some, side hustles are to tide them over until they are employed full-time. They do not want to sit around doing nothing and not earn an income. For others, they have side hustles to supplement the income or because it is a passion they are pursuing. Employers and policymakers need to build strategies to address all of these motivations.
These entrepreneurially-minded young people would be drawn to products and services that support and grow their businesses. These include short courses, networking opportunities and financial products tailored to their needs. In June 2023, FNB announced the launch of a customised solution for customers with “side hustles” – The Solopreneur Bundle.
For employers, it is debatable whether to encourage or discourage this phenomenon with their Gen Z workers. On the one hand, they do not want workers who are too tired and distracted to function optimally. On the other hand, the skills developed from entrepreneurial endeavours can be applied to their full-time jobs. Regardless, this is becoming a central feature of this generation, and employers do not have the power to stem this tide. Measuring performance through output instead of time is one way to embrace this trend without hurting the bottom line.
Taxation is likely to be a source of frustration for these young entrepreneurs. According to a Cash App Taxes survey, 25% of Gen Zers in the US say they will need a therapist to deal with tax filing stress. Navigating tax returns for side hustles is confusing. Policymakers can assist in educating young people about this. Load shedding is a challenge for those with side hustles. Data from the Wonga survey (above) indicates that it is having a significant impact on side hustlers, especially those operating within the township economy. Finding ways to circumvent this challenge is crucial for policymakers. Policymakers should encourage and support these young entrepreneurs, seeing that they are vital to the overall economy.
*This is not her real name
By Flux Trends
The data and quotes mentioned above refer to a project that we are in the midst of, in conjunction with Student Village called “The 30/30/30 Project” whereby we collected insights from 30 South Africans, under the age of 30, 30 years into our new democracy.
WHERE TO FROM HERE?
Use these and many more insights from the 30/30/30 Project Report to BUILD your team, by booking a Bridgebuilder™ Workshop.
Close the generation gap and dive into the future of work and how to manage it.
There is a 15% discount for booking this workshop for September 2024.
Contact Bethea Clayton at connected@fluxtrends.co.za or +27764539405, to claim your discount!
Image credit: Anthony Young
