Many Canadians seem to be unprepared for the realities of taking a side gig to the next level.

Nearly a quarter have a side hustle of some sort, while nearly half of gen-Z business owners have both a full-time job and a business on the side, according to a recent survey by Royal Bank of Canada’s business registration platform Ownr.

The rise in side jobs comes as Canadians grapple with a rising cost of living, with 39 per cent of side hustlers using it as a way to supplement their income, a third per cent are looking to offset higher prices and 26 per cent wanting to pay down their debt. But 21 per cent say these ventures are a way to make a little income while pursuing a hobby.

A side hustle can be lucrative, too, with 19 per cent of current side hustlers expecting to leave their job and pursue the venture full time, which increases to 29 per cent for gen-Zers.

But turning the side hustle into something bigger is where many Canadians may feel out of their depth, as 37 per cent say they don’t know when they might need to register a business and 38 per cent say they don’t understand the legal requirements that may apply to their business.

“What starts as extra income often becomes a realization: ‘I’m actually good at this.’ Then comes the thought, ‘I could do this full time.’ That’s where it gets hard,” Ownr chief executive Jordan Casey said in a release.

“It’s daunting for a reason. Side hustlers are already short on time and when they’re focused on making the leap to full time, it’s the legal and compliance steps that tend to fall through the cracks — whether they realize it or not.”

He recommends setting clear milestones to reach before switching a side gig to a full-time job, researching when registration is required for a small business and what tax implications the business has and considering what you want for the future of the business before committing.

Generally, small businesses are required to register with the government once they reach $30,000 in taxable revenue within a calendar year or plan to hire employees. Registration is also generally required to open a business banking account and to acquire certain licences or permits.

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Global growth is expected to pick up in 2027 as countries boost their AI investments, but the world is reaching the limits to its growth amid an energy squeeze, the International Monetary Fund said Tuesday.

Growth is expected to climb 3.4 per cent in the year, unchanged for the IMF’s previous outlook in July, while it increased its outlook for 2026 to 3.1 per cent.

The IMF warned that tech advancements buoying the global economy may not last much longer, as the war against Iran threatens further energy supply shortages.

“We need to restore fiscal space,” IMF Chief Economist Silvana Tenreyro said Tuesday at a press conference in Bangkok. “That’s the homework for everyone, to make sure that we’re resilient.”

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  • Earnings: Bank of America Corp., Morgan Stanley, The Progressive Co., Fastenal Co.

  • A trade war, two beer importers, two very different outcomes
  • Canada’s oilpatch is on the verge of a construction boom, but who will do the building?
  • Iran’s Art of War: How the Treasury market became the real battlefield
  • TC Energy sells economic stake in Coastal GasLink pipeline to five First Nations

Should wealthy Canadians pay more in taxes? B.C. Premier David Eby is proposing a new tax bracket for those in his province who make more than $1 million. But as Kim Moody argues, those British Columbians would pay a 57.5 per cent income tax rate when combined with federal taxes, leaving many to consider a move. Read more.

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McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

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Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.

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