What was once deemed a side hustle is now a full-time profession for many online creators in the UK. Content creation, specifically on social media platforms like TikTok, is a growing industry, and a recent report from Visa and TikTok reveal that more than a third of online creators in the UK are earning between £19,000 and £48,000 a year.
More than half of creators consider themselves to be successful entrepreneurs, whilst 73% of them view their work as a small business. Many entrepreneurs have come from using TikTok to boost their businesses and platforms, which is true of Hair Syrup founder and Dragon’s Den reject, Lucie Macleod.
The 26 year old entrepreneur used TikTok virality to build her haircare business and now generates more than £5 million a year. She did not need Dragon’s Den, as her recognition on TikTok proved to be of the most value, when it came to the much-loved prewash hair treatment – a favourite among many, including customers influencers alike.
The report, shown at the Web Summit conference in Lisbon which took place between the 11 to 13 November, indicates how creators are actively growing their businesses. It shows that nearly half earn over £1,600 a month, with 34% receiving between £1,600 and £3,999.
With international payments, 51% of creators receive them, which highlight the worldwide demand for talent based in the UK. However, on the contrary, only 49% feel confident enough in their financial ability, highlighting the need for more education in this area. Overall, the majority (88%) of global creators are expecting their revenue to increase over the next year, showing that this is a snapshot of the future of creative entrepreneurship.
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Visa has shared that they are willing to support this next generation of creative entrepreneurs as, Lucy Demery, Head of Visa Commercial Solutions, Europe said: “UK creators are thriving, earning more and reaching global audiences like never before. Creators aren’t just building audiences; they’re building enterprises. Their momentum highlights the UK’s leadership in the creator economy, and we’re committed to delivering innovative tools that help them grow.”
Further global insights from the study across Australia, Brazil, UAE, UK and the US point out the key takeaways: the majority of creators rely on their own funds; community support; and funding like crowdfunding, which displays a need for more financial products for creators.
Faster payment processors are desired, as it allows for a more advanced access to earnings, instead of the difficulties they face currently with payment delays. Almost all creators, (94%) of them share that they are encouraged by family and friends, which solidifies the position that content creators have, to pursue this a viable career option.
