The Passion Economy & Side Hustles: The New Face of Small Business

When we think of small businesses, we often picture traditional storefronts — local shops, family-run cafés, or tradespeople on the high street. But today, entrepreneurship looks very different.

A new generation of small business owners has emerged: digital-first entrepreneurs, side hustlers, creators, and micro-business owners building income streams through platforms like eBay, Etsy, TikTok, and more.

These entrepreneurs aren’t part of the corporate economy — they’re part of the Passion Economy. And despite their growing numbers, many remain invisible to traditional finance providers.

This is the fifth article in our “Shaping the Future of Small Business Finance” series. As the definition of ‘small business’ evolves, finance must evolve too — meeting creators, side hustlers, and digital-first entrepreneurs on the platforms they use every day.

The modern small business owner isn’t always who you’d expect.

Many have full-time jobs but spend evenings growing side hustles. Some sell products online. Others create content, run niche communities, or build e-commerce businesses from their living rooms.

Examples include:

• A watch enthusiast selling exclusive timepieces via TikTok
• A hairstylist creating content and selling beauty products online
• An eBay seller running a thriving side business from home

What starts as a hobby can quickly evolve into a viable business, with the right tools and access to funding.

The problem? The financial system isn’t designed for them.

Banks and lenders typically require formal credit histories, collateral, and years of trading history — things most side hustlers and micro-businesses don’t have.

Many of these entrepreneurs run their business informally, often from personal bank accounts, making them “invisible” to traditional lenders.

Even alternative lenders struggle to serve them. They don’t fit neatly into risk models or application forms.

But their economic impact is growing fast — and so is their need for fair, fast access to capital.

This is where embedded finance steps in.

By partnering with platforms like eBay and others, fintech providers like Liberis can use real-time transaction data to assess these businesses, offering pre-approved working capital based on actual business performance, not paperwork.

For many entrepreneurs, even a small cash injection is transformational. It can:

• Fund new inventory
• Support marketing and growth
• Smooth out cash flow
• Turn a side hustle into a full-time business

And because the finance is embedded within the platforms they already use, there’s no paperwork, no rejection, and no friction.

The rise of the Passion Economy isn’t just a trend — it’s a fundamental shift in how people build businesses and economic opportunity.

In a digital-first world, the barriers to starting a business are lower than ever. But the barriers to growing that business — particularly around finance — remain high.

By providing fair, fast, and data-driven access to capital, embedded finance helps level the playing field for a new generation of entrepreneurs.

Tomorrow’s small business owners won’t always have shopfronts or teams.

They’ll build, create, and sell online — turning passions into income, side hustles into sustainable businesses.

They deserve financial services that are fast, digital, and built around how they actually operate.

That’s the promise of the Passion Economy.

And it’s why the future of small business finance looks nothing like the past.

In our final chapter, we’ll explore how AI and autonomous agents are building the next generation of embedded finance, removing admin and empowering small businesses like never before.