Over a third (35%) of Brits now run a side hustle, with savvy entrepreneurs making over £5,000 each in additional income.

The study by small business insurer Simply Business revealed the majority (55%) of side hustles were set up during the pandemic, when people used their time, energy and the need for extra income to set up a side business.

As people across the UK turn their hobbies, skills and passions into successful side businesses, over one in 10 (14%) expect to make over £5,000 each in additional income in the next year. What’s more, over half (54%) now make up to 10% of their annual income from their side hustle.

Seven out of ten (72%) people running a side hustle are currently employees of a company, as people reevaluate their careers, look to make extra income, or pursue a hobby.

Why has the side hustle become so popular?

Against a backdrop of a global pandemic, widespread furlough and multiple lockdowns, people were able to start their side hustles at home. Nearly a third (28%) say the pandemic gave them time and energy to make their side hustle happen, while one quarter (23%) believe the pandemic made them reconsider what they wanted to do long term.

One in five (20%) have needed to make up for lost income due to the pandemic, as redundancies and reduced income tightened purse strings.

And we can expect to see the rise in side business continue – as a further third (31%) are thinking about setting up a side hustle in the near future. Of those thinking of starting up, more than a third (36%) have an idea but are still figuring it out, while a further 30% say they haven’t had the time yet to get started.

As the world gets back to work, a third (34%) of people with side hustles say they don’t have enough time to properly run their side business. A fifth (19%) struggle to get their work-life balance right, and 17% struggle to market their business and find customers.

Alan Thomas, UK CEO at Simply Business, commented: “It is testament to the entrepreneurial spirit that runs throughout the UK that more than one in three people now have a side hustle alongside their main source of income.

“Small businesses are crucial to the UK, accounting for 99% of all British businesses and contributing trillions of pounds a year to our economy. It’s therefore encouraging to see that so many people have taken the plunge during the pandemic and started side businesses.

“However, many also report roadblocks as they look to scale their side hustles – such as time, finance, and red tape, and it is vital that we all support their success. At Simply Business, we’re acutely aware of the many challenges facing small business owners when starting up. That’s why we’ve created our side hustle resource hub, which offers business guides and practical resources to help side businesses get off the ground.”