Self employment is an often precarious means of earning a living, but it’s equally one that is often forced upon people by redundancies.  New research from Rice University explores how racism, and perceptions of it, influence the take up of self-employment among black Americans.

The study found that working blacks who feel that racism has a significant impact on their lives were much more likely to resort to self-employment than their peers who felt it had a lesser impact.

“Many people think self-employment can be a road to success,” the researchers explain. “There are many, many stories told about people who are self-employed and ‘do very well.’ But we found ourselves wondering what role racism plays in a black person’s decision to become self-employed.”

Racial capital

The analysis found that when people were highly aware of racism, something the researchers refer to as having high ‘racial capital’, they were seven times more likely to pursue self-employment than their peers with much lower levels of awareness.

“We feel that these individuals might seek self-employment to evade racism or at least minimize its influence on their careers,” the researchers say.

What is perhaps important to state is that this career path did not necessarily result in financial success for the individuals involved.  Often they reported worsening financial circumstances than they enjoyed as a salaried employee.  It was also less common for those taking this route to have a college education.

The researchers believe that people might be making career choices because of a belief in the world working in a certain way.  If they think that racism is a central part of traditional workplaces, then it’s perhaps no surprise that people opt out.  Choosing self employment is no guarantee of better times however.

“Self-employed or not, racism still undermines their career and financial success,” the researchers conclude.