In South Africa? Examining the "Side Hustle" Economy

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In South Africa? Examining the WHAT IS THE FUTURE OF WORK IN SOUTH AFRICA? EXAMINING THE “SIDE HUSTLE” ECONOMY A white paper from Henley Business School In collaboration with our research partner, In On Africa foreword :(6,7DWRSDWLPHERPERIXQHPSOR\PHQWLQ6RXWK$IULFD,QWKHƪUVWTXDUWHURIWKLV\HDURI6RXWK$IULFDśVSRWHQWLDO We have to break this corporate conformity and conservatism if we are to stand any chance. We know that there is a direct ZRUNIRUFHZDVXQHPSOR\HGDQGPRUHWKDQKDOIWKH\RXWKŘZRXOGEHƪUVWWLPHHQWUDQWVWRWKDWVDPHPDUNHW FRUUHODWLRQEHWZHHQHFRQRPLFJURZWKDQGWKHJURZWKRIFUHDWLYHLQGXVWULHVHVSHFLDOO\LQHPHUJLQJHFRQRPLHV2QHRIWKHPRVW FRPSHOOLQJVWXGLHVKDVEHHQGRQHE\3URIHVVRU&OD\WRQ0&KULVWHQVHQRQHRIWKHGR\HQVRIWKH+DUYDUG%XVLQHVV6FKRRODQGWKH :KLFKHYHUZD\\RXORRNDWLWWKHƪJXUHVDUHRPLQRXV,WśVDGLUHVLWXDWLRQIXUWKHUEHGHYLOOHGE\WKHIDFWWKDWRXUHFRQRP\LV WKHRULVWRIGLVUXSWLYHLQQRYDWLRQ,I\RXEXLOGFUHDWLYHV\RXEXLOGHFRQRPLHVLWśVWKDWVLPSOH VOXJJLVKDWEHVW*'3FRQWUDFWLQJE\LQWKHƪUVWTXDUWHURIWKLV\HDUZKLFKPHDQVWKRVHZKRDUHHPSOR\HGƪQGWKHPVHOYHV FDXJKWLQDYLFHRIULVLQJFRVWVDQGQHDUVWDJQDQWSD\OHYHOVLQUHDOWHUPV /HJLWLPDWLQJDQGDFWLYHO\HQFRXUDJLQJVLGHKXVWOLQJDQGVLGHMREELQJFDQKHOSEUHDNWKDWPRXOGVKDWWHUWKHJUHHQKRXVHDQG FUHDWHWKHFRQGLWLRQVWKDWQXUWXUHWKHJURZWKRIRUJDQLFEXVLQHVVHVWKDWGLVUXSWWKLVRXWGDWHGPRGHOHYROYHWKHHFRQRP\ $WWKHVDPHWLPHZHVSHDNRIHQWUHSUHQHXUVDQGRILQQRYDWLRQDQGFUHDWLYLW\WREUHDNWKHLPSDVVHLQZKLFKZHƪQGRXUVHOYHVDQG FUHDWLQJZHDOWKDQGMREVZLWKDIUDFWLRQRIWKHULVNRIQRUPDOVWDUWXSVEXWUDWKHUMXVWVFDOHXSZKDWLVDOUHDG\KDSSHQLQJLQD \HWWKDQNVWRDJURXQGEUHDNLQJVWXG\FRQGXFWHGHDUOLHUWKLV\HDUE\+HQOH\%XVLQHVV6FKRRO$IULFDŘSHUKDSVWKDWYHU\DQVZHU PDQDJHG6FKXPSHWHULDQSURFHVVRIFUHDWLYHGHVWUXFWLRQDVZHKHOSWKHQHZHFRQRP\EHELUWKHGWKURXJKWKHDFWLYH OLHVULJKWLQIURQWRIXV participation of the old. :RUNLQJRƩWKHSODWIRUPRIWKHLQDXJXUDOVWXG\FRQGXFWHGODVW\HDUE\RXUSDUHQWRUJDQLVDWLRQ+HQOH\8.RXUUHVHDUFKHUVZHQW 7KLVVWXG\JLYHVXVDQLQNOLQJRIWKHSRWHQWLDOWKDWOLHVEH\RQG:HQHHGWRVWXG\PRUHDQGZLGHO\HVSHFLDOO\LQWKHXQGHUUHSRUW- IRUWKWRH[SORUHWKHSKHQRPHQRQRIWKHJLJHFRQRP\WKH6LGH+XVWOHUVDQG6LGH-REEHUVDVWKH\DUHNQRZQ HGDQGXQGHUVHUYLFHGSDUWVRIWKLVFRXQWU\WRIXOO\XQGHUVWDQGWKLVSKHQRPHQRQEXWDWWKLVVWDJH3UHVLGHQW&\ULO5DPDSKRVDśV TXRWLQJRI1LJHULDQSRHW%HQ2NULDWKLVUHFHQW6WDWHRIWKH1DWLRQ$GGUHVVVHHPVHHULO\SUHVFLHQW 6LGH+XVWOHUVDUHGHƪQHGDVSHRSOHZKRDUHHPSOR\HGEXWZKRUXQDEXVLQHVVVHSDUDWHO\WRWKHLUPDLQLQFRPHWKH\PLJKWHYHQ EHVHOIHPSOR\HGEXWUXQQLQJRQHRUPRUHVHSDUDWHEXVLQHVVHVRQWKHVLGH$6LGH-REEHURQWKHRWKHUKDQGLVDSHUVRQZKRLV Will you be at the harvest, HPSOR\HGEXWRƩHUVWKHVDPHVHUYLFHVWRRWKHUFOLHQWV7KHVHVHUYLFHVLUUHVSHFWLYHRIZKHWKHUWKH\DUHSHUIRUPHGE\6LGH Among the gatherers of new fruits? +XVWOHUVRU6LGH-REEHUVDUHGRQHDIWHUWKHQRUPDOQLQHWRƪYHZLQGRZRIWKHQRUPDOZRUNLQJGD\ŘDQGRYHUZHHNHQGV Then you must begin today to remake Your mental and spiritual world, ,QDW\SLFDO6RXWK$IULFDQZRUNSODFHLQDOOSUREDELOLW\VWLOOVWDƩHGDQGUXQDVLIWKLVZDVVWLOOWKHVDQGRXUHFRQRP\ZDV And join the warriors and celebrants SUHPLVHGRQXVGLJJLQJSUHFLRXVPHWDOVRXWRIWKHJURXQGDQGVHOOLQJWKHPRQDFORVHGPDUNHWWKLVNLQGRIEHKDYLRXUZRXOGEH Of freedom, realizers of great dreams. 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They upskill themselves at their own expense, they become less GHSHQGHQWRQWKHFRPSDQ\IRUWKRVHDOOLPSRUWDQWDQQXDOFRVWRIOLYLQJH[SHQVHVRUOLIHFKDQJLQJFDUHHUSDWKLQJEHFDXVHWKH\ KDYHOLWHUDOO\WDNHQFRQWURORIWKHLURZQGHVWLQLHV$QGWKH\ś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ŘDQGƪQDQFLDOORVVŘLQVWDUWXSVLVFKLOOLQJO\KLJKLQWKHƪUVWƪYH\HDUVRIRSHUDWLRQ ,WPDNHVFRPSHOOLQJEXVLQHVVVHQVHWRUHJXODULVHDQGOHJLWLPLVHWKLVSUDFWLFHLQFRPSDQLHVWRHYHU\RQHśVEHQHƪWVEHFDXVHWKHVH VLGHKXVWOHUVDQGVLGHMREEHUVDUHLQFUHGLEO\LQQRYDWLYHDQGFUHDWLYHDQGDOUHDG\DPRQJDFRPSDQ\śVJUHDWHVWDVVHWV7KH\OHDUQ QHZVNLOOVWKDWWKH\EULQJEDFNLQWRWKHLUSULPDU\HPSOR\PHQW,QVWHDGRIGHYHORSLQJQDWLRQDOLQFXEDWRUVZKLFKDUHRIWHQVHHQWR EHRIOLWWOHYDOXHZHPLJKWLQFXEDWHDZKROHQHZZDYHRIHQWUHSUHQHXUVZKRDUHVLGHKXVWOLQJZKLOHZRUNLQJDQGEXLOGLQJ HFRQRPLFYDOXHDQGMREV,WPD\RSHQWKHGRRUWRPRUHMREVKDULQJDQGVKRUWHUZRUNLQJZHHNVDVVLGHKXVWOHUVVSHQGPRUHWLPH on their other ventures. 6RXWK$IULFDśVHFRQRP\KDVFKDQJHGGUDPDWLFDOO\DQGLUUHYRFDEO\EXWZHDUHDOVRVWDQGLQJRQWKHWKUHVKROGRIWKHIRXUWK LQGXVWULDOUHYROXWLRQWKHJUHDWHVWGLVUXSWRUDQ\RIXVKDYHHYHUNQRZQŘEXWDOVRSRWHQWLDOO\WKHJUHDWHVWOLEHUDWRU7KHSUREOHPLV WKDWZHDQGLQSDUWLFXODUFRUSRUDWH6RXWK$IULFDKDYH\HWWRFKDQJHZLWKLW2XUHFRQRPLFODQGVFDSHLVVWLOOGRPLQDWHGDOPRVW DVSK\[LDWHGE\WKHPRQROLWKLFFRUSRUDWHSUDFWLFHVRIDE\JRQHHUDŘHYHQLIWKRVHVHOIVDPHPRQROLWKVWKDWELUWKHGLWKDYHORQJ become a footnote in history. 1 foreword :(6,7DWRSDWLPHERPERIXQHPSOR\PHQWLQ6RXWK$IULFD,QWKHƪUVWTXDUWHURIWKLV\HDURI6RXWK$IULFDśVSRWHQWLDO We have to break this corporate conformity and conservatism if we are to stand any chance. We know that there is a direct ZRUNIRUFHZDVXQHPSOR\HGDQGPRUHWKDQKDOIWKH\RXWKŘZRXOGEHƪUVWWLPHHQWUDQWVWRWKDWVDPHPDUNHW FRUUHODWLRQEHWZHHQHFRQRPLFJURZWKDQGWKHJURZWKRIFUHDWLYHLQGXVWULHVHVSHFLDOO\LQHPHUJLQJHFRQRPLHV2QHRIWKHPRVW FRPSHOOLQJVWXGLHVKDVEHHQGRQHE\3URIHVVRU&OD\WRQ0&KULVWHQVHQRQHRIWKHGR\HQVRIWKH+DUYDUG%XVLQHVV6FKRRODQGWKH :KLFKHYHUZD\\RXORRNDWLWWKHƪJXUHVDUHRPLQRXV,WśVDGLUHVLWXDWLRQIXUWKHUEHGHYLOOHGE\WKHIDFWWKDWRXUHFRQRP\LV WKHRULVWRIGLVUXSWLYHLQQRYDWLRQ,I\RXEXLOGFUHDWLYHV\RXEXLOGHFRQRPLHVLWśVWKDWVLPSOH VOXJJLVKDWEHVW*'3FRQWUDFWLQJE\LQWKHƪUVWTXDUWHURIWKLV\HDUZKLFKPHDQVWKRVHZKRDUHHPSOR\HGƪQGWKHPVHOYHV FDXJKWLQDYLFHRIULVLQJFRVWVDQGQHDUVWDJQDQWSD\OHYHOVLQUHDOWHUPV /HJLWLPDWLQJDQGDFWLYHO\HQFRXUDJLQJVLGHKXVWOLQJDQGVLGHMREELQJFDQKHOSEUHDNWKDWPRXOGVKDWWHUWKHJUHHQKRXVHDQG FUHDWHWKHFRQGLWLRQVWKDWQXUWXUHWKHJURZWKRIRUJDQLFEXVLQHVVHVWKDWGLVUXSWWKLVRXWGDWHGPRGHOHYROYHWKHHFRQRP\ $WWKHVDPHWLPHZHVSHDNRIHQWUHSUHQHXUVDQGRILQQRYDWLRQDQGFUHDWLYLW\WREUHDNWKHLPSDVVHLQZKLFKZHƪQGRXUVHOYHVDQG FUHDWLQJZHDOWKDQGMREVZLWKDIUDFWLRQRIWKHULVNRIQRUPDOVWDUWXSVEXWUDWKHUMXVWVFDOHXSZKDWLVDOUHDG\KDSSHQLQJLQD \HWWKDQNVWRDJURXQGEUHDNLQJVWXG\FRQGXFWHGHDUOLHUWKLV\HDUE\+HQOH\%XVLQHVV6FKRRO$IULFDŘSHUKDSVWKDWYHU\DQVZHU PDQDJHG6FKXPSHWHULDQSURFHVVRIFUHDWLYHGHVWUXFWLRQDVZHKHOSWKHQHZHFRQRP\EHELUWKHGWKURXJKWKHDFWLYH OLHVULJKWLQIURQWRIXV participation of the old. :RUNLQJRƩWKHSODWIRUPRIWKHLQDXJXUDOVWXG\FRQGXFWHGODVW\HDUE\RXUSDUHQWRUJDQLVDWLRQ+HQOH\8.RXUUHVHDUFKHUVZHQW 7KLVVWXG\JLYHVXVDQLQNOLQJRIWKHSRWHQWLDOWKDWOLHVEH\RQG:HQHHGWRVWXG\PRUHDQGZLGHO\HVSHFLDOO\LQWKHXQGHUUHSRUW- IRUWKWRH[SORUHWKHSKHQRPHQRQRIWKHJLJHFRQRP\WKH6LGH+XVWOHUVDQG6LGH-REEHUVDVWKH\DUHNQRZQ HGDQGXQGHUVHUYLFHGSDUWVRIWKLVFRXQWU\WRIXOO\XQGHUVWDQGWKLVSKHQRPHQRQEXWDWWKLVVWDJH3UHVLGHQW&\ULO5DPDSKRVDśV TXRWLQJRI1LJHULDQSRHW%HQ2NULDWKLVUHFHQW6WDWHRIWKH1DWLRQ$GGUHVVVHHPVHHULO\SUHVFLHQW 6LGH+XVWOHUVDUHGHƪQHGDVSHRSOHZKRDUHHPSOR\HGEXWZKRUXQDEXVLQHVVVHSDUDWHO\WRWKHLUPDLQLQFRPHWKH\PLJKWHYHQ EHVHOIHPSOR\HGEXWUXQQLQJRQHRUPRUHVHSDUDWHEXVLQHVVHVRQWKHVLGH$6LGH-REEHURQWKHRWKHUKDQGLVDSHUVRQZKRLV Will you be at the harvest, HPSOR\HGEXWRƩHUVWKHVDPHVHUYLFHVWRRWKHUFOLHQWV7KHVHVHUYLFHVLUUHVSHFWLYHRIZKHWKHUWKH\DUHSHUIRUPHGE\6LGH Among the gatherers of new fruits? +XVWOHUVRU6LGH-REEHUVDUHGRQHDIWHUWKHQRUPDOQLQHWRƪYHZLQGRZRIWKHQRUPDOZRUNLQJGD\ŘDQGRYHUZHHNHQGV Then you must begin today to remake Your mental and spiritual world, ,QDW\SLFDO6RXWK$IULFDQZRUNSODFHLQDOOSUREDELOLW\VWLOOVWDƩHGDQGUXQDVLIWKLVZDVVWLOOWKHVDQGRXUHFRQRP\ZDV And join the warriors and celebrants SUHPLVHGRQXVGLJJLQJSUHFLRXVPHWDOVRXWRIWKHJURXQGDQGVHOOLQJWKHPRQDFORVHGPDUNHWWKLVNLQGRIEHKDYLRXUZRXOGEH Of freedom, realizers of great dreams. IURZQHGRQRXWODZHGDFWXDOO\7KHWUXWKWKRXJKDVRXUVWXG\VKRZVLVWKDWWKHVHLQWUDHQWUHSUHQHXUVDUHDFWXDOO\IDUKDUGHU ZRUNLQJWKDQWKHLUQRQVLGHKXVWOLQJRUMREELQJFROOHDJXHVŘDYHUDJLQJKRXUVDZHHNRQWKHLUPDLQMREVDVRSSRVHGWRWKH :HFDQJDWKHUWKRVHQHZIUXLWVDOORIXVLIRQO\ZHFDQDOORZRXUVHOYHVWRHQYLVDJHDGLƩHUHQWZRUNLQJPRGHODQHUDRI DYHUDJHRIEHIRUHWKH\HYHQVWDUWRQWKHLURWKHULQWHUHVWV0RVWRIWKHPDUHXQOLNHO\WROHDYHWKRVHPDLQMREVHYHQLIWKHLUVLGH employed-preneurs – sooner rather than later. LQWHUHVWVWDNHRƩ Jon Foster-Pedley - Dean and Director of Henley Business School Africa They employ people, some many more than one person. They upskill themselves at their own expense, they become less GHSHQGHQWRQWKHFRPSDQ\IRUWKRVHDOOLPSRUWDQWDQQXDOFRVWRIOLYLQJH[SHQVHVRUOLIHFKDQJLQJFDUHHUSDWKLQJEHFDXVHWKH\ KDYHOLWHUDOO\WDNHQFRQWURORIWKHLURZQGHVWLQLHV$QGWKH\śUHPDNLQJLWZRUN6LGH-REEHUVDUHVXSSOHPHQWLQJWKHLUPRQWKO\ LQFRPHE\XSWRDTXDUWHUZKLOH6LGH+XVWOHUVDUHHDUQLQJXSWRPRUH 6RZK\DUHWKH\GRLQJLW"6RPHDUHGRLQJLWWRPDNHHQGVPHHWRWKHUVWRSXUVXHDSDVVLRQ7KLVLVQRWDQLVRODWHGSKHQRPHQRQ HLWKHUDOPRVWRIRXUUHVSRQGHQWVKDYHDVLGHKXVWOHRUVLGHMREDQGDPRQJWKRVHZKRKDYHEHHQLQWKHVDPHPDLQMREIRU PRUHWKDQ\HDUVDOPRVWRIWKHPKDYHGLVFORVHGWKHLUVLGHMREVWRWKHLUHPSOR\HUVZLWKPRUHWKDQRI6LGH+XVWOHUV
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