In South Africa? Examining the "Side Hustle" Economy

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

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1 foreword

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burning the midnight oil

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our methodology

We also conducted 10 in-depth qualitative interviews in order A web survey was WRKLJKOLJKWLPSRUWDQWWKHPHV implemented from DQGWUHQGVLQ6RXWK$IULFDśV 0DUFK$SULO side hustle economy. ZLWKDWRWDORI completed responses. 2 1 5HVSRQGHQWVZHUH invited to participate WKURXJK+HQOH\DQG IOA contact databases.

Quantitative data analysis XVLQJ6366 VSDQQLQJYDULRXV comparative analyses across sub-samples. Interviews were 3 transcribed and analysed XVLQJthematic analysis WHFKQLTXHV

Defining our side hustle:

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Therefore, those who work in the same area of activity but across PXOWLSOHHPSOR\HUVEXVLQHVVHVDUHQRWLQFOXGHGLQRXUGHƪQLWLRQ RI6LGH+XVWOHUV:HKDYHWHUPHGWKHVHUHVSRQGHQWV6LGH-REEHUV and we have termed respondents without any form of side work 0DLQ-REEHUV

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FOR PASSION OR PROFIT:

THAT IS THE QUESTION

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“We're seeing a shift in the middle market amongst the formally employed. With the poor economic climate … with rising costs, you know... people are highly indebted. Many of them have started have two, three jobs”.

Daisy Tlhapane, Middle Market Segment Executive, Nedbank

Top 5 reasons for deciding to start a side hustle Side Hustler v Side Jobber

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Top reasons for starting a side hustle VS age

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Side hustle motivations

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Top reasons for starting a side hustle VS Employment status

Supplement my income / Interest / passion 3XUVXHDEXVLQHVVLGHD 1HZFKDOOHQJH 1HHGHGPRUHPRQH\

Employed Self-employed

Sentiments towards main job ,Q FRQWUDVW WKH IDFW WKDW PRUH 6LGH -REEHUV DUH SDVVLRQDWH DERXWWKHLUPDLQMREHQDEOHVWKHPWRSXUVXHDVLGHMREDVD and side hustle PHDQV RI HDUQLQJ DGGLWLRQDO LQFRPH 7KH IDPLOLDULW\ WKDW FRPHV ZLWK ZRUNLQJ D VLGH MRE LQ WKH VDPH LQGXVWU\ DV WKHLU $FRPSDULVRQRI6LGH+XVWOHUVDQG6LGH-REEHUVUHYHDOVWKDW PDLQ MRE PLJKW DOVR EH WKH UHDVRQ IRU PRUH 6LGH -REEHUV more Side Hustlers view their side hustle as their passion while GHVFULELQJ ERWK WKHLU PDLQ MRE DQG VLGH MRE DV WKHLU SDVVLRQ PRUH6LGH-REEHUVYLHZWKHLUVLGHMREDVDQDGGLWLRQDOVRXUFH LQFRPSDULVRQWR6LGH+XVWOHUV UHLWHUDWHGE\ RILQFRPH7KHVWHDG\LQFRPHIURPWKHLUPDLQMREDƩRUGV6LGH WKH WUHQG LQ VLGH MREELQJ WKDW KDV EHHQ REVHUYHG LQ WKH Hustlers the opportunity to pursue their passion. WHFKQRORJ\LQGXVWU\

Perceptions toward main job and side hustle

0\PDLQMRELV 0\PDLQMRELVP\ 0\PDLQMREDQGP\ 0\PDLQMREDQGP\ 0\PDLQMREDQGP\ 1RQHRIWKHDERYH primarily to earn passion, my side side hustle are to side hustle are my side hustle are income, my side hustle is primarily to earn income passion HTXDOO\DSDVVLRQDQG hustle is my passion earn income to earn income

Side Hustler 6LGH-REEHU

7KHWHFKLQGXVWU\LVTXLWHQLFKH¢LI\RX UHDWHFKDłFLRQDGRDQGVRPHERG\ZKRLVLQWKHLQGXVWU\\RXNLQGRIHQVXUHWKDW your hobbies, your interest, your things outside of the work that you do at Microsoft is all tech aligned. So you very rarely will łQGSHRSOHZKRZLOOGRWKLQJVRXWVLGHRIWHFK,IWKH\GRWKLQJVRXWVLGHRIWHFKOLNHFRDFKLQJPHQWRULQJOHFWXULQJHWFLWZLOO still be very much tech-aligned”.

Sameera Mohamed, Senior HR Manager, Microsoft

SIDE HUSTLING IN ALL SHAPES AND SIZES

TYPES OF SIDE HUSTLES 5HDOHVWDWH ZDVWKHVHFRQGSRSXODUFKRLFHZKLFKLV likely the result of low barriers of entry. The process to become DUHDOHVWDWHDJHQWLVUHODWLYHO\VLPSOHPDNLQJLWPRUHDSSHDO- 7RJDLQDEHWWHUXQGHUVWDQGLQJRIWKHVLGHKXVWOHHFRQRP\LQ LQJIRUSHRSOHWRZRUNRQDVDVLGHMRE7KHWKLUGPRVWSRSXODU South Africa, respondents were asked about the type of side FKRLFHZDVWHDFKLQJOHFWXULQJDQGWXWRULQJ DUHLWHUD- KXVWOHMREWKH\DUHLQYROYHGLQ7KHPRVWSRSXODUFKRLFHZDV WLRQ RI WKH KHDOWK\ GHPDQG IRU TXDOLƪHG LQGLYLGXDOV ZKR FDQ professional business services such as consultancy, account- WXWRUYDULRXVVXEMHFWVDQGWHDFKGLƩHUHQWVNLOOV LQJDQGPDUNHWLQJ FRQVLVWHQWZLWKWKHSURƪOHRIRXU VXUYH\HGUHVSRQGHQWVZLWKDVLGHKXVWOHMRE KLJKO\HGXFDWHG

DQG LQ VHQLRU DQG PLGPDQDJHPHQW SRVLWLRQV ZLWKLQ WKHLU PDLQMRE

Side jobs or business activities engaged in % share of Side Hustler and Side Jobber sample

3URIHVVLRQDOEXVLQHVVVHUYLFHV 5HDOHVWDWH 7HDFKLQJOHFWXULQJWXWRULQJ Investments 6HOOLQJJRRGV Other &UDIWEXVLQHVV &UHDWLQJDSSVVRIWZDUHHWF 5XQQLQJDKRWHOORGJH$LUEQE :ULWLQJDUWLFOHVIRUPDJD]LQHVHWF 1HWZRUNLQJPDUNHWLQJ &RRNLQJEDNLQJ Brand promotions 'ULYLQJ HJWD[LVHUYLFHV &UHDWLQJPXVLFPXVLFYLGHRVRUƪOP %ORJJLQJDQGRUYORJJLQJ 3HUIRUPLQJZULWLQJPXVLFHWF :ULWLQJERRNV 5XQDUHVWDXUDQWEDU %HDXW\VHUYLFHV HJPDNHXS 3URYLGLQJEXLOGLQJ',

,QWKHSDVWZKDW\RX OOVHHLVLI, PDQDFFRXQWDQW¢P\VLGHKXVWOHZRXOGEHWXWRULQJIRULQVWDQFH%XWQRZDFFRXQWDQWVDUH doing tax returns for people, doing books for small businesses and things like that. So people are now starting to tap into their own skills, you know professional skills, to unlock more earning potential for themselves”.

Daisy Tlhapane, Middle Market Segment Executive, Nedbank

&UDPSWRQ1Ś6RXWK$IULFDQ6LGH+XVWOHV

NUMBER / YEARS OF SIDE HUSTLING

1HDUO\KDOIRIDOOVXUYH\HG6LGH+XVWOHUV RQO\KDYH 0RVW6LGH+XVWOHVDSSHDUWREHLQVWDUWXSSKDVHVZLWKPRUH RQHVLGHKXVWOH$IXUWKHUKDYHWZRVLGHKXVWOHVDQG WKDQEHLQJLQRSHUDWLRQIRUOHVVWKDQ\HDUV7KLVZRXOG KDYHWKUHHVLGHKXVWOHV2QO\DVPDOOSHUFHQWDJHRI VXJJHVWWKDWVLGHKXVWOLQJLVVWLOOYHU\PXFKLQLWVLQIDQF\LQ 6LGH+XVWOHUVLQGLFDWHKDYLQJIRXURUPRUHVLGHKXVWOHV South Africa.

Number of side hustles Number of years side hustling

Less than a year

One \HDUV

Two \HDUV

Three \HDUV

)RXU \HDUV

0RUHWKDQ years

The number of side hustles an individual has is positively correlated with the number of years that he/she has been side KXVWOLQJ:KLOHDQRYHUZKHOPLQJRIQHZVLGHKXVWOHUVXQGHUVWDQGDEO\RQO\RSHUDWHDVLQJOHVLGHKXVWOHWKLVQXPEHU SURJUHVVLYHO\GURSVGRZQWRDVORZDVIRUWKRVHZKRKDYHEHHQVLGHKXVWOLQJIRU\HDUV

Number of years side hustling VS Number of side hustles

Less than a year

\HDUV

\HDUV 1XPEHURI\HDUVVLGHKXVWOLQJ

\HDUV

One side hustle Two Three )RXU )LYHRUPRUH

THE FUTURE OF WORK IN SA:

SIDE HUSTLING PERCEPTIONS

SIDE HUSTLING AND THE FUTURE OF -REEHUV DQG WKH 8QHPSOR\HG WKHUH LV D JHQHUDO FRQVHQVXV WKDWKLJKHVWFRQVLGHUDWLRQZRXOGEHJLYHQWRHPSOR\HUVZKR WORK RƩHUƫH[LEOHZRUNLQJKRXUV ZLWKWKHEHOLHIWKDWWKRVH HPSOR\HUV ZKR GR VR ZRXOG EHQHƪW FRQVLGHUDEO\ Ř ,QUDWLQJSHUFHSWLRQVRIUHVSRQGHQWJURXSVZLWKUHJDUGWRWKH WKLVODVWSRLQWLVIXUWKHUVXSSRUWHGE\WKHJHQHUDOYLHZWKDWWKH IXWXUH RI ZRUN DQG VLGH KXVWOLQJ VRPH LQWHUHVWLQJ WUHQGV ZRUNLQJ URXWLQH LV EHFRPLQJ LQFUHDVLQJO\ RXWGDWHG HPHUJHG )URP DFURVV 6LGH +XVWOHUV 6LGH -REEHUV 0DLQ

Perceptions towards side hustling and the future of work

,śPPRUHOLNHO\WRFRQVLGHUDQHPSOR\HUZKRRƩHUVƫH[LEOHZRUNLQJ hours

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+DYLQJDVHFRQGMRERFFXSDWLRQLVQHFHVVDU\IRUPDQ\SHRSOHWRDGGWR low incomes

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Side Hustlers 6LGH-REEHUV 0DLQMREEHUV 8QHPSOR\HG

THE FUTURE OF WORK IN SA:

$OO IRXU UHVSRQGHQW JURXSV DUH DOVR PRUH OLNHO\ WR FRQVLGHU +XVWOHUV WKDQ 0DLQ -REEHUV RU WKH 8QHP- those employers who allow them to explore their own SOR\HG $GGLWLRQDOO\RƩHULQJWKHRSSRUWXQLW\WRZRUN EXVLQHVVLGHDVZKLOHZRUNLQJIRUWKHP WKRXJKXQVXU- LQ GLƩHUHQW ORFDWLRQV LV YLHZHG DV FRQVLGHUDEO\ SULVLQJO\WKLVLVUDWHGKLJKHUE\6LGH-REEHUV DQG6LGH important by all respondents.

,WKLQNZHQHHGWRVKRZWKDWZHUHSURJUHVVLYHDQGLQQRYDWLYHDQGORRNLQJIRUZDUGLQWRWKHIXWXUH,DOVRWKLQNZHFDQVHWDQ H[DPSOHIRURXUFXVWRPHUVDQGRXUVWXGHQWV7KDWWKLVLVVRPHWKLQJWKDWWKH\FDQDOVRWDNHIXUWKHULQWRWKHRUJDQLVDWLRQ, ZRXOGOLNHWRVHHDVKRUWSURJUDPFRPLQJRXWRIWKLVWKDW+HQOH\RƩHUVWRVLGHKXVWOHUV7KHVHDUHVRPHRIWKHSURV¢7KH FRQVDUHWKDWWKHPLQXWH\RXPDNHLWVRPHWKLQJRƧFLDODQGYLVLEOHWKHUHPLJKWEHSHRSOHWDNLQJDELWRIDGYDQWDJHRILWZKHUH we still have a job to do here, and we are all always really busy at Henley, and you're not supposed to actually have spare time to do something else.”

Dr Adri Drotskie: Head of Research and Faculty Development, Henley Business School Africa

Factors considered when choosing :RUNLQJ UHJXODU RƬFH KRXUV VHHPV WR EH UDUHO\ FRQVLGHUHG DFURVV DOO UHVSRQGHQW JURXSV DV LV D ƪ[HG EXVLQHVV an employer ORFDWLRQ ,QUHYHUVHIDVKLRQKRZHYHUƫH[LEOHZRUNLQJ KRXUV ORRN WR EH D KLJKO\ GHVLUHG IDFWRU DFURVV UHVSRQGHQW ,Q UDWLQJ VWDWHPHQWV SHUWDLQLQJ WR LPSRUWDQW IDFWRUV ZKHQ JURXSV $QLQWHUHVWLQJWUHQGLQWKLVUHJDUGLVWKDWWKH GHFLGLQJWRZRUNIRUDQHPSOR\HUERWK6LGH+XVWOHUVDQG6LGH 8QHPSOR\HG DSSHDU WR EH PRUH FRQFHUQHG DERXW UHJXODU -REEHUVIHHOVWURQJO\DERXWWKHDELOLW\WRSXUVXHWKHLUSDVVLRQV ZRUNLQJ KRXUV DQG D ƪ[HG EXVLQHVV ORFDWLRQ WKDQ DOO RWKHU DQG DQGDGGLWLRQDOZRUNRSSRUWXQLWLHV UHVSRQGHQWJURXSV7KLVKLJKOLJKWVWZRYHU\LPSRUWDQWSRLQWV DQG ZKLOHDOVRKDYLQJWKHDELOLW\WRRQHGD\RZQWKHLU LQ 6RXWK $IULFDśV VRFLRHFRQRPLF GLYLGH ZKLFK OLNHO\ DFW DV RZQ EXVLQHVV ZKHUHDV 0DLQ -REEHUV DQG WKH 8QHPSOR\HG GHWHUPLQLQJ GULYHUV LQ SXUVXLQJ D PDLQ MRE E\ 8QHPSOR\HG view these points of consideration as far less important – DQGVLPLODUO\SXUVXLQJDVLGHKXVWOHE\ERWK6LGH+XVWOHUVDQG LQWHUHVWLQJO\ 6LGH -REEHUV IHHO PRVW VWURQJO\ DERXW WKHVH 6LGH-REEHUV ODFNLQJDFFHVVWRWHFKQRORJ\ŘDQGSRWHQWLDOO\ SRLQWVZKLOH0DLQ-REEHUVWKHOHDVW NQRZ KRZ Ř WR SXUVXH ZRUN RSSRUWXQLWLHV WKURXJK GLJLWDO PHDQVDQG SHUVRQDOWUDQVSRUWDWLRQWRDOORZIRUƫH[LELOLW\LQ SXUVXLQJ DGGLWLRQDO ZRUNRSSRUWXQLWLHV

Important factors when deciding to work for an employer

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Side Hustlers 6LGH-REEHUV 0DLQMREEHUV 8QHPSOR\HG

employees and employers:

the many hats of a side hustler

Side hustle hours and proportion KUV ,WFRXOGEHGHGXFHGWKDWWKH6LGH-REEHUVGRQRWH[SHUL- HQFH D PDUNHG GLƩHUHQFH ZKHQ WUDQVLWLRQLQJ LQWR WKHLU VLGH of income MREDQGDVVXFKDUHOLNHO\WRVSHQGPRUHKRXUVZRUNLQJWKHLU VLGHMREWKDQ6LGH+XVWOHUV 7KH %DVLF &RQGLWLRQV RI (PSOR\PHQW $FW %&($ VWLSXODWHV WKDWRQDYHUDJHWKHPD[LPXPQXPEHURIKRXUVWKDWHPSOR\- $OPRVW D TXDUWHU RI 6LGH -REEHUVś LQFRPH FRPHV IURP WKHLU HHVVKRXOGZRUNLVKRXUV,WLVKHOGWKDWRQDYHUDJHD6RXWK VLGHMRE ZLWKWKHPDMRULW\VWHPPLQJIURPWKHLUPDLQ $IULFDQHPSOR\HHZLOOZRUNKRXUVSHUZHHN MRE ,QWHUHVWLQJO\ IRU 6LGH +XVWOHUV RQO\ RI WKHLULQFRPHFRPHVWKHLUVLGHKXVWOH7KLVƪQGLQJLVFRQVLVWHQW 6LGH+XVWOHUVDQG6LGH-REEHUVVSHQGIDUPRUHKRXUVSHUZHHN ZLWK SUHYLRXV ƪQGLQJV VXJJHVWLQJ WKDW 6LGH -REEHUV DUH D WKDQWKHDYHUDJHHPSOR\HH KUV 7KLVLVLQDGGLWLRQWRWKH PRUHRIWHQFRQGXFWLQJVLGHZRUNIRUDGGLWLRQDOLQFRPHWKDQ KRXUV VSHQW RQ WKHLU VLGH KXVWOH MRE 6LGH -REEHUV VSHQG 6LGH +XVWOHUV DQG E EHWWHU HTXLSSHG WR JHQHUDWH LQFRPH PRUHWLPHRQWKHLUVLGHMRE KUV WKDQ6LGH+XVWOHUV IURPWKHLUVLGHZRUNGXHWRLWEHLQJLQDQLQGXVWU\WKDWWKH\DUH intimately familiar with.

Weekly hours spent on main job Proportion of income from main job vs side hustle / job and side hustle / job

Side Hustlers 3URSRUWLRQIURPPDLQMRE 3URSRUWLRQIURPVLGH 6LGH-REEHUV KXVWOHMRE 0DLQMRE 6LGHKXVWOHMRE

Side Hustler 6LGH-REEHU

7KHQDWXUHRIVLGHKXVWOLQJGLƩHUVVXEVWDQWLDOO\GHSHQGLQJRQZKHWKHUWKH6LGH+XVWOHULVHPSOR\HGRUVHOIHPSOR\HGLQWKHLU PDLQMRE6HOIHPSOR\HG6LGH+XVWOHUVDUHDEOHWRFRPPLWPRUHKRXUVHDFKZHHNWRWKHLUVLGHKXVWOHKDYLQJWKHƫH[LELOLW\WKDW FRPHVZLWKEHLQJRQHśVRZQERVV5HODWHGO\WKH\DOVRJHQHUDWHDKLJKHUSURSRUWLRQRIWKHLUUHYHQXHWKURXJKWKHLUVLGHKXVWOH compared to Side Hustlers who are employed.

Employment / Self-employment VS Average number of hours worked per week on main job and side hustle

Self-employed full or part time \ work freelance :HHNO\KRXUVRQPDLQMRE Weekly hours on side hustle (PSOR\HGIXOORUSDUWWLPH E\DQHPSOR\HU

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11 employees and employers:

Employment / Self-employment VS Proportion of revenue from main job and side hustle

Self-employed full or part time \ work 3URSRUWLRQRIUHYHQXHIURP freelance PDLQMRE

3URSRUWLRQRIUHYHQXHIURPVLGH (PSOR\HGIXOORUSDUWWLPH E\DQ HPSOR\HU hustle

There is a direct correlation between the number of years &RQFXUUHQWO\KRZHYHUWKHSURSRUWLRQRIUHYHQXHWKDW6LGH VLGHKXVWOLQJDQGWKHQXPEHURIKRXUVSHUZHHNLQYHVWHGLQ Hustlers earn from their side hustle remains relatively stable RQHśVVLGHKXVWOHLHWKHORQJHUD6LGH+XVWOHUKDVEHHQVLGH ŘUDQJLQJIURPIRUQHZ6LGH+XVWOHUVXSWRIRU KXVWOLQJWKHIHZHUWKHQXPEHURIKRXUVSHUZHHNKHVKH WKHLUPRUHH[SHULHQFHGFRXQWHUSDUWV7KLVVXJJHVWVWKDW6LGH LQYHVWV7KHDYHUDJHQXPEHURIKRXUVSHUZHHNGURSVIURP +XVWOHUVDUHDEOHWRZRUNIHZHUKRXUVIRUURXJKO\WKHVDPH RU KRXUVIRUWKRVHZKRKDYHEHHQVLGHKXVWOLQJIRUOHVVWKDQ HYHQKLJKHU SURSRUWLRQRILQFRPHDVWKH\EHFRPHPRUH D\HDUGRZQWRMXVWKRXUVSHUZHHNIRUWKRVHZKRKDYH HƬFLHQWLQWKHLUKXVWOLQJDFWLYLWLHVDQGEXLOGXSPRUH EHHQVLGHKXVWOLQJIRU\HDUV resources, skills, clients etc.

Hours spent on side hustling and proportion of revenue VS Years side hustling

Hours per week on side hustle 3URSRUWLRQRILQFRPHIURPVLGHKXVWOH Hours Less than a year \HDUV \HDUV \HDUV \HDUV

Years side hustling

Hours per week on side hustle 3URSRUWLRQRIWRWDOLQFRPHIURPVLGHKXVWOH /LQHDU +RXUVSHUZHHNRQVLGHKXVWOH /LQHDU 3URSRUWLRQRIWRWDOLQFRPHIURPVLGHKXVWOH

side hustlers as employers

6LGHKXVWOLQJSUHVHQWVDQLPSRUWDQWDYHQXHIRUQHZHPSOR\PHQWRSSRUWXQLWLHVLQ6RXWK$IULFD2XUƪQGLQJVVKRZWKDW DQHQFRXUDJLQJSHUFHQWDJHRI6LGH+XVWOHUV DQG6LGH-REEHUV HPSOR\DWOHDVWRQHRWKHUSHUVRQ6LGH -REEHUVDUHOLNHO\EHWWHUSRVLWLRQHGWRHPSOR\RWKHUVGXHWRWKHIDFWWKDWWKH\WHQGWRJHQHUDWHDKLJKHUSURSRUWLRQRI UHYHQXHIURPWKHLUVLGHMREWKDQ6LGH+XVWOHUV

Side Hustlers and Side Jobbers who employ others

Side Hustlers

6LGH-REEHUV

Employs others 'RHVQRWHPSOR\RWKHUV

7KHPDMRULW\RIWKHVH6LGH+XVWOHUV HPSOR\ such as the fact that self-employed Side Hustlers spend more SHRSOHDQGDIXUWKHUHPSOR\SHRSOH6HOIHPSOR\HG time each week on their side hustle than employed Side 6LGH+XVWOHUVDUHPRUHOLNHO\WRHPSOR\RWKHUVWKURXJKWKHLU +XVWOHUV KUVYHUVXVKUV DQGDOVRHDUQDKLJKHU VLGHKXVWOHFRPSDUHGWRWKRVHZKRDUHHPSOR\HG SURSRUWLRQRIWKHLUUHYHQXHIURPWKHLUVLGHKXVWOHV YHUVXV 7KLVLVOLNHO\GXHWRDFRPELQDWLRQRIIDFWRUV YHUVXV

Employed side hustlers who Self-employed side hustlers who employ others employ others

35,6% 43,4% 64,5% 56,6%

Employ someone in side hustle/s Employ someone in side hustle/s 'RQRWHPSOR\DQ\RQHLQVLGHKXVWOH 'RQRWHPSOR\DQ\RQHLQVLGHKXVWOH

6LGH+XVWOHUVZKRHPSOR\RWKHUVWKURXJKWKHLUVLGHKXVWOHWHQGWRZRUNVXEVWDQWLDOO\PRUHKRXUVSHUZHHNWKDQWKRVH ZKRGRQRWHPSOR\ KUVSHUZHHNYHUVXVKUV 7KHDGGLWLRQDOKRXUVSHUZHHNRQWKHLUVLGHKXVWOHDUHOLNHO\ an important factor in these side hustlers ability to employ others, both from a time and revenue perspective.

Hours worked on main job and side hustle VS Employment through side hustle

(PSOR\VVRPHRQHWKURXJKVLGHKXVWOH 'RHVQśWHPSOR\DQ\RQHWKURXJKVLGHKXVWOH Hours worked per week worked Hours

0DLQMREKRXUV Side hustle hours

side hustlers as employers

5HODWHGWRWKHDERYHƪQGLQJ6LGH+XVWOHUVZKRHPSOR\RWKHUVWKURXJKWKHLUVLGHKXVWOHDOVRJHQHUDWHDODUJHU SURSRUWLRQRIUHYHQXHIURPWKHLUVLGHKXVWOHFRPSDUHGWRWKRVHZKRGRQRWHPSOR\ YHUVXV

Proportion of revenue from main job and side hustle VS Employment through side hustle

'RHVQśWHPSOR\DQ\RQHWKURXJKVLGHKXVWOH

(PSOR\VVRPHRQHWKURXJKVLGHKXVWOH

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Side hustlers as employees

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Requirement to inform employer of Main job employer awareness of business activities outside of main job side hustle/s

7LPHGLUHFWO\LQƫXHQFHVGLVFORVXUHRIVLGHKXVWOHDFWLYLWLHVWRHPSOR\HUV7KLVLVSDUWLFXODUO\WUXHZKHQFRQVLGHULQJWKHOHQJWKRI WLPHUHVSRQGHQWVKDYHEHHQZRUNLQJRQWKHLUVLGHKXVWOHŘMXVWGLVFORVXUHDPRQJUHVSRQGHQWVZKRKDYHEHHQZRUNLQJRQ WKHLUVLGHKXVWOHIRUOHVVWKDQD\HDULQFUHDVLQJWRGLVFORVXUHDPRQJUHVSRQGHQWVZKRKDYHEHHQVLGHKXVWOLQJIRU \HDUV:KLOHQRWDVSURPLQHQWWKLVWUHQGLVDOVRREVHUYHGLQUHODWLRQWRWKH\HDUVZRUNLQJLQWKHLUPDLQMRELQFUHDVLQJVWHDGLO\ IURPGLVFORVXUH OHVVWKDQ\HDULQPDLQMRE XSWRGLVFORVXUH \HDUVLQPDLQMRE

side hustlers as employees

Years in main job and side hustle VS % employers aware of side hustle

RIHPSOR\HUVDZDUHRIVLGHKXVWOH Less than a year \HDUV \HDUV \HDUV \HDUV

2IWKHVXUYH\HG6LGH+XVWOHUVDFRQVLGHUDEOHSHUFHQWDJHRI 1RWZLWKVWDQGLQJWKHDERYHƪQGLQJVRI6LGH+XVWOHUV respondents report that their employers are neither indicated that their employers' support or lack of support VXSSRUWLYHQRUXQVXSSRUWLYHZLWKUHJDUGWRWKHLUVLGHKXVWOH towards their side hustle does not impact how they feel about ZKLOHFORVHWRDTXDUWHURI6LGH+XVWOHUVLQGLFDWHG FRQWLQXLQJWRZRUNLQWKHLUUHVSHFWLYHFRPSDQ\RUJDQLVDWLRQ WKDWWKHLUHPSOR\HUVDUHVXSSRUWLYHRIWKHLUVLGHKXVWOH

Comparing levels of employer support between side hustlers and side jobbers

Side Hustler

6LGH-REEHU

Very supportive Very supportive 1HLWKHUVXSSRUWLYHQRUXQVXSSRUWLYH 1HLWKHUVXSSRUWLYHQRUXQVXSSRUWLYH 1RWVXUH

Impact of employers’ attitude on continuing to work for the organisation

Side Hustlers

0XFKPRUHOLNHO\WRZDQWWROHDYHWKDWFRPSDQ\ A little more likely to want to leave that company

+DVQRLPSDFWRQKRZ,IHHODERXWVWD\LQJOHDYLQJ $OLWWOHPRUHOLNHO\WRZDQWWRFRQWLQXHZRUNLQJWKHUH

0XFKPRUHOLNHO\WRZDQWWRFRQWLQXHZRUNLQJWKHUH 1RWVXUH

what if the hustle takes off?

5HVSRQGHQWVZHUHDVNHGDERXWWKHOLNHOLKRRGRIWKHPOHDYLQJ UHVSRQGHQWV KDYLQJ D VLGH KXVWOH PLJKW MXVW QRW EH DERXW WKHLU PDLQ MRE LI WKHLU VLGH KXVWOHV WRRN RƩ DQG VWDUWHG WR JHQHUDWLQJSURƪW7KHLUVLGHKXVWOHPLJKWEHDYHKLFOHWKURXJK JHQHUDWH VXEVWDQWLDOO\ PRUH LQFRPH WKDQ FXUUHQWO\ 2XU ZKLFK ƪQDQFLDO VWDELOLW\ FDQ EH EXLOW &RQYHUVHO\ WKHVH 6LGH UHVXOWVVKRZWKDWPRUH6LGH+XVWOHUV ZRXOGSUREDEO\ +XVWOHUVPLJKWDOVREHKHVLWDQWDERXWOHDYLQJWKHLUPDLQMRE RUGHƪQLWHO\VWD\LQWKHLUPDLQMRELIWKHLUVLGHKXVWOHWRRNRƩ EHFDXVHRIWKHSUHFRFLW\WKDWFRPHVZLWKUHO\LQJVROHO\RQD 7KH VLJQLƪFDQW SHUFHQWDJH RI 6LGH +XVWOHUV LQGLFDWLQJ WKDW side hustle, a sentiment reiterated below. WKH\ZRXOGVWD\LQWKHLUPDLQMREGHPRQVWUDWHVWKDWIRUWKHVH

3HUFHSWLRQVWRZDUGVOHDYLQJPDLQMRELIVLGHKXVWOHVWRRNRƩ % share of Side Hustler sample

Side Hustlers

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,W VWKHIHDURIORVVRILQFRPH$QGZLWKWKHORVVRILQFRPHLVWKHIHDURIORVVRIOLIHVW\OH,WVEHFDXVHRIWKHLURZQIHDUDQGWKHLU QDUUDWLYHVWKDWDUHERUQRXWRIWKDWIHDULW VWKHWKLQJVWKH\WHOOWKHPVHOYHVULJKW"7KDWLWVRQO\DVLGHKXVWOH,I\RXORRNDW something as only a side hustle, it will always remain that… even when opportunities present themselves, you will never take those opportunities… the underlying fear of failing… fear of the unknown”.

Daisy Tlhapane, Middle Market Segment Executive, Nedbank

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,ZRXOGGHƪQLWHO\OHDYHP\ I would probably leave my I would probably stay even if ,ZRXOGGHƪQLWHO\VWD\HYHQLI MREWRSXUVXHP\VLGH MREWRSXUVXHP\VLGH my side business interest my side business interest business interest business interest WRRNRƩ WRRNRƩ

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conclusions and the road ahead

concluding remarks +XVWOHUVHPSOR\LQJDWOHDVWRQHRWKHUSHUVRQ 6LGH+XVWOHUVSULRULWLVHZRUNƫH[LELOLW\DQGSRVLWWKDW HPSOR\HUVVKRXOGEHRƩHULQJPRUHƫH[LEOHZRUNLQJKRXUVWR 2XUUHVHDUFKVHWRXWWREHWWHUXQGHUVWDQGWKHJURZLQJVLGH their employees, as well as the opportunity to work in KXVWOH HFRQRP\ LQ 6RXWK $IULFD :LWK WKH HYHUFKDQJLQJ alternative locations. Side Hustlers also believe that nature of work and employment relationships, this study HPSOR\HUVśZLOOEHQHƪWIURPRƩHULQJƫH[LELOLW\DQGQRWHWKDW HQGHDYRXUHG WR JDLQ NQRZOHGJH DQG LQVLJKWV VXUURXQGLQJ they are more likely to consider an employer that will allow SHRSOHśV PRWLYDWLRQV IRU VLGH KXVWOLQJ KRZ PDQ\ KRXUV DUH them to explore their own business ideas. GHGLFDWHGWRWKHLUVLGHKXVWOHDQGHPSOR\HUVśSHUFHSWLRQVDQG responses to this phenomenon. 1RWZLWKVWDQGLQJ WKHVH SUHIHUHQFHV 6LGH +XVWOHUV GR QRW LQWHQGRQOHDYLQJWKHLUPDLQMRELIWKHLUVLGHKXVWOHZHUHWRWDNH The side hustle culture in South Africa is denoted by the need RƩUHLWHUDWHGE\WKHIDFWWKDW6LGH+XVWOHUVVSHQGPRUHWLPH WR JHQHUDWH DQ DGGLWLRQDO LQFRPH LQ WDQGHP ZLWK SXUVXLQJ D RQWKHLUPDLQMREWKDQWKHDYHUDJH6RXWK$IULFDQHPSOR\HH SDVVLRQ RU LQWHUHVW 6LGH +XVWOHUV ZRUN VLGH KXVWOHVMREV LQ (YHQ WKH RYHUZKHOPLQJ LQGLƩHUHQFH RI HPSOR\HUV WRZDUGV GLƩHUHQW W\SHV RI ƪHOGV ZLWK WKH PRVW SRSXODU KXVWOHV their side hustles does not impact how they feel about their PHQWLRQHG WKURXJK RXU UHVHDUFK EHLQJ LQ SURIHVVLRQDO PDLQMRERUHPSOR\HU VHUYLFHVUHDOHVWDWHDQGWHDFKLQJ7KHVLGHKXVWOHHFRQRP\ FRQWULEXWHV WR MRE FUHDWLRQ ZLWK PRUH WKDQ D WKLUG RI 6LGH recommendations

'HVSLWHWKHH[LVWLQJELDVLQWHUPVRIWKHVDPSOHDQXPEHURINH\SRLQWVZHUHGUDZQIURPWKHUHVHDUFKZKLFKVKRXOGEHWDNHQLQWR account as recommendations for the future.

1. Employers should be more supportive of employees with a side hustle –6LGHKXVWOLQJDOORZVSHRSOHWRJDLQQHZVNLOOVDQG NQRZOHGJHZKLFKFRXOGHQDEOHWKHPWREHWWHUFRQWULEXWHWRWKHLUPDLQMRE(PSOR\HUVVKRXOGORRNWREHPRUHFRJQL]DQWRIWKHLU HPSOR\HHVśVLGHKXVWOHVDQGZKHUHSRVVLEOHHQFRXUDJHDQGVXSSRUWWKHPDVWKH\FRXOGFRQWULEXWHWRDPXOWLVNLOOHGZRUNIRUFH

2. Side Hustlers do not have their eyes set on the exit door –$FFRUGLQJWRRXUUHVHDUFKPRVWHPSOR\HHVZLWKDVLGHKXVWOH ZRXOGQRWOHDYHWKHLUMREHYHQLIWKHLUVLGHKXVWOHWRRNRƩ6LGH+XVWOHUVDUHJHQHUDOO\FRPPLWWHGWRWKHLUPDLQMREHQJDJLQJLQVLGH KXVWOLQJSULPDULO\DVDQDFWLYLW\GULYHQE\SDVVLRQUDWKHUWKDQRQO\DVDQHHGIRUDGGLWLRQDOLQFRPH,WLVLPSRUWDQWIRUHPSOR\HUVWR UHFRJQLVHWKLVDQGQRWYLHZVLGHKXVWOLQJDVDWKUHDWWRWKHLUFRPSDQ\EXWUDWKHUDVDQHQGHDYRXUWKDWFRXOGFRQWULEXWHWRWKH JURZWKRIWKHFRPSDQ\

3. Allowing for side hustling, and even side jobbing, will mitigate rising company costs in the face of weak economic growth –7KHUHVHDUFKƪQGLQJVVXJJHVWWKDWDPRQJWKHVXUYH\HGVDPSOHWKHUHLVDQHHGIRUDGGLWLRQDOLQFRPHZLWKWKHWUHQG DPRQJWKHJHQHUDOSRSXODWLRQOLNHO\EHLQJPRUHSURQRXQFHGJLYHQKLJKXQHPSOR\PHQWUDWHVHVSHFLDOO\DPRQJWKH\RXWK:LWK ZHDNHFRQRPLFJURZWKLQWKHFRXQWU\FRUSRUDWHVVKRXOGDOORZHPSOR\HHVWRSXUVXHDGGLWLRQDOZRUNRSSRUWXQLWLHVDIWHUKRXUV

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conclusions and the road ahead

While the intention of this research was not to assess a 7KRXJKLWZDVIXUWKHUGLVWULEXWHGWRWKHEURDGHUSRSXODWLRQ sample that is representative of broader trends, it is WKURXJKVRFLDOPHGLDSODWIRUPVWKHƪQGLQJVKDYHQRWHGD important to reiterate that the sample was skewed towards FRQVLGHUDEOHSURSRUWLRQRI6LGH+XVWOHUVDQG6LGH-REEHUV sourced databases from Henley Africa and IOA. The survey ZLWKSRVWJUDGXDWHEXVLQHVVHGXFDWLRQ7KHVDPSOHZDVDOVR was distributed to the Henley Africa and IOA networks, which VNHZHGWRZDUGV*DXWHQJZLWKPDMRULW\RIWKHUHVSRQGHQWV SULPDULO\FRQVLVWRIHGXFDWHGZRUNLQJSURIHVVLRQDOV KDYLQJFRPHIURPWKHSURYLQFH

THE ROAD AHEAD

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1. A study on the South African side hustle economy within rural and other low income areasWRVKHGOLJKWRQWKHJURZLQJWUHQGRI VLGHKXVWOLQJLQWKHVHDUHDV$VQRWHGDERYHWKHNH\OLPLWDWLRQRIWKHFXUUHQWVWXG\ZDVWKDWRXUVDPSOHZDVVNHZHGWRZDUGVPLGGOH DQGXSSHULQFRPHVLGHKXVWOHUVDQGWKXVWKLVZRXOGEHDORJLFDOQH[WVWHSLQGHHSHQLQJLQWKHNQRZOHGJHEDVHRQ6RXWK$IULFDQVLGH hustlers.

$PRUHLQGHSWKDVVHVVPHQWRIWKHviews, concerns and suggestions of corporate leadersRQVLGHKXVWOLQJZLWKLQWKHLU RUJDQLVDWLRQV7KLVUHVHDUFKZRXOGDLPWRLQIRUPWKHGHYHORSPHQWDQGUHƪQHPHQWRIFRUSRUDWHSROLFLHVDURXQGVLGHKXVWOLQJ DQGVLGHMREELQJ

$QDVVHVVPHQWRIcurrent policies and regulations relating to side hustling and side jobbing in corporate environments across the FRXQWU\DVZHOODVDEURDGHULQYHVWLJDWLRQLQWRŚEHVWSUDFWLFHVśEHLQJIROORZHGJOREDOO\WRKHOSLQIRUPWKHZD\IRUZDUGIRUVLGHKXVWOLQJ in South Africa.

$QDVVHVVPHQWRIVLGHKXVWOLQJVSHFLƪFDOO\ZLWKLQWKHSXEOLFDQG132VHFWRUV of the South African economy, coupled with an LQYHVWLJDWLRQLQWRWKHYLHZVRIJRYHUQPHQWUHJDUGLQJWKHRSSRUWXQLWLHVIRUVLGHKXVWOLQJWRFRQWULEXWHWRDGGUHVVLQJXQHPSOR\PHQW DQGPRUHEURDGO\WKHFXUUHQWHFRQRPLFFKDOOHQJHVWKDWWKHFRXQWU\LVIDFLQJ

Henley Africa and IOA would welcome collaboration with other partners on any of the above research topics. Those interested in working with us on the next steps should reach out to Henley Africa – see contact details on the following page.

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CONTACT IN ON AFRICA (IOA): ZZZLQRQDIULFDFRP_(PDLOLQIR#LQRQDIULFDFRP_