October 14th 2024.
A recent study has discovered that a significant number of Australians are facing financial struggles, with nearly half of the population needing to supplement or change their main source of income in the near future. As living costs continue to skyrocket, the pressure to find alternative means of income is becoming more pressing for 55% of Australians who are considering starting a small business or side hustle within the next five years.
The research, conducted by Small Business Loans Australia (SBLA), surveyed 1005 individuals to gain insight into how they were coping with the rising costs of mortgages, rent, and groceries. The results were concerning, with 68% of respondents admitting to feeling motivated to find additional sources of income. Within this group, 38% planned to start a side hustle, while 17% were considering a small business as their sole source of income.
Interestingly, the majority of those who expressed a desire to start their own business or side hustle were younger, with 79% being under the age of 25. The states and territories with the highest number of individuals looking for alternative income streams were New South Wales and the Australian Capital Territory.
Despite the age difference, the motivation to start a small business as the main source of income was consistent across all of Australia. SBLA delved deeper into the reasons behind this growing trend and found that the primary motivator was a desire for a better income. Other factors included a desire for a better work-life balance and to escape a toxic work environment.
Alon Rajic, the founder and managing director of SBLA, shared his thoughts on the survey results, stating that they were a clear indication of the financial strain that Australians are facing. He went on to explain that with the high cost of living and no signs of relief, individuals are realizing the need to find alternative ways to cover their expenses.
Rajic also highlighted the benefits of starting a small business, stating that it allows individuals to earn additional income while still working their main job. He emphasized the freedom and flexibility that comes with owning a small business, making it an attractive option for those looking for extra income.
This study comes at a time when more and more Australians are feeling the impact of the cost of living crisis. As inflation continues to take a toll on people's wallets, many are being forced to make significant changes to their budget and lifestyle. In fact, recent research from Finder revealed that people are resorting to unconventional methods, such as picking up free furniture or relying on free food services, to make ends meet.
According to Sarah Megginson, a personal finance expert at Finder, the cost of living crisis is hitting Australians harder than ever before. She noted that traditional cost-cutting measures are no longer sufficient, and people are now turning to support programs or unconventional means to get by. With tight budgets and desperate times, individuals are having to take drastic measures to make ends meet.
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