Navigating the Gig Economy: Tips for Side Hustlers in South Africa
South Africans Embrace the Gig Economy: Tips for Financial Protection
The gig economy has taken South Africa by storm, with a significant portion of the population opting for side hustles as a primary means of revenue. This trend, fueled by technological advancements and the rising cost of living, has seen a surge in freelance, short-term, and on-demand work opportunities.
According to recent surveys, as many as 30% of middle-class South Africans have side hustles, and part-time employment has increased by almost 28% in the past few years. While side hustles offer flexibility and the chance to monetize passions or hobbies, it’s crucial for gig workers to understand and mitigate the risks involved.
Jason Mellow, Head of Broker Distribution at MiWay Insurance, emphasizes the importance of financial protection for part-time pursuits. He advises gig workers to consider the unique risks associated with their business and invest in the right kind of business insurance. Not all policies are created equal, and it’s essential to tailor coverage to the specific nature of the work, equipment needed, and potential liabilities.
For example, a jewellery-making side hustle involving specialized equipment would benefit from a policy that covers the full replacement value of equipment and inventory. MiWay offers Business Property policies that extend to business premises, contents, cash, electronics, and special equipment, providing comprehensive coverage for various risks.
In addition to insurance, gig workers should also focus on managing their side hustles effectively to maintain cash flow, update IT systems, and stay on top of tax matters. Hiring temporary or permanent staff may require expert labor advice to ensure compliance with regulations and minimize employee-related risks.
By addressing these considerations proactively and seeking professional advice, side hustlers can strengthen their ventures, minimize risks, and set the stage for sustainable growth. MiWay’s MiBusinessAssist offers business support services to help entrepreneurs reduce operational costs and focus on what they love doing, ultimately setting them up for long-term success in the gig economy.
