The main motivation factor that contributes to the wish of Baltic residents to use their knowledge and skills outside of their main work time is the opportunity to gain additional income – this answer was mentioned by 73% of Latvian, 79% of Lithuania and 74% of Estonian residents.
The next motivational factor is the knowledge that a person applies him or herself (35% in Latvia, 37% in Lithuania and 33% in Estonia), as well as the opportunity to work in any place and time (39% in Latvia, 24% in Lithuania and 40% in Estonia), according to results of a study by Swedbank Finance Institute on Baltic States residents’ ability to gain additional income.
«The financial aspect is the main factor for residents to seek additional income. It is reflected in residents’ replies and economic development rate in Baltic States – Estonia’s residents, who are the wealthiest in Baltic States, are less inclined towards seeking additional income. Lithuanians, on the other hand, are the most active. We see that a considerable part of Latvia’s population would like to earn more money. Often the only thing missing is encouragement to make them do it. An encouragement can be provision of information about opportunities to make money and aspects related to that, provision of good examples and opinion exchange. This is exactly what we wish to accomplish with our new campaign,» – emphasizes Reinis Jansons, head of Swedbank Finance Institute.
Which residents most often gain additional income?
Most often additional income is acquired by self-employed men with higher education, who perform intellectual work and are not satisfied with their basic income. Women with secondary education who live in towns and are not satisfied with their standing career and income level have the biggest potential when it comes to making extra money.
The main areas where it is possible to earn additional income
Answering the question as to what to do to earn additional income, 15% of respondents in Latvia, 18% in Lithuania and 15% in Estonia mentioned choosing to work as a freelancer. The next most popular area, especially in Latvia, is consultation service provision. 10% of residents in Latvia (10% in Lithuania and 8% in Estonia) mentioned having earned money by providing services related to household maintenance. 5% of residents in Latvia (9% in Lithuania and 3% in Estonia) mentioned earning additional money by selling home-made food products. It is worth mentioning that 33% of employed people in Latvia (29% in Lithuania and 33% in Estonia) mentioned that they have not yet used their skills and knowledge to earn additional income. Nevertheless, they have the desire to do so.
When asked how much additional money they have earned in the past month, 35% of Latvian residents mentioned earning an amount up to EUR 50 (34% in Lithuania and 25% in Estonia). 19% of respondents in Latvia mentioned amounts ranging from EUR 50 to EUR 100 (21% in Lithuania and 22% in Estonia). 15% of respondents in Latvia mentioned earning EUR 100 to EUR 200 in the past month (15% in Lithuania and 22% in Estonia).
«Earning more money requires courage and commitment, which is something we see in results of the study. This means people committed to acquire higher education, become self-employed or hired employees or owner of a business, perform intellectual work, require a big dose of courage to convert their knowledge and skills into income. We also see that the lack of savings is a common obstacle to realize an idea. However, not all activities require investments. It is also possible to gather savings from one of many earning activities to later realize some great idea,» – says Jansons.
What are the obstacles that prevent people from earning additional income?
The main reason that prevents residents in Latvia from earning additional income is the lack of time (answer mentioned by 30% in Latvia, 32% in Lithuania and 36% in Estonia). The other most common barrier is different bureaucratic and legislative restrictions (29% in Latvia, 30% in Lithuania and 20% in Estonia).