The rising cost of living and inflation have driven millions of Americans to take on side hustles, and Black women have been a significant part of this economic shift.
As of 2023, one in three Americans had a side hustle, with nearly one in four relying on their additional income to cover everyday expenses, reports Entrepreneur.
For Black women, who face one of the most significant pay disparities in the workforce, side hustles have become both a financial necessity and an avenue for entrepreneurship.
But is this trend truly helping, or is it exacerbating existing inequalities?
The Financial Reality for Black Women
Writing in the Entrepreneur, Dr Nika White, a fearless advocate for diversity, equity and inclusion, and an award-winning management and leadership consultant, stated that despite their growing presence in entrepreneurship, Black women continue to battle systemic pay disparities.
According to the Institute for Women’s Policy Research, Black women earn just $0.61 for every dollar earned by a man. At this rate, pay equity for Black women is not expected until the year 2227—over two centuries from now.
The research highlights that many Black women are often limited to low-quality job options, further widening the wage gap.
However, the rise of side hustles has presented a potential pathway to financial freedom.
Many Black women have leveraged their skills in areas such as freelance consulting, e-commerce, and gig economy jobs to build wealth outside of traditional employment. Side hustles have allowed them to supplement their incomes and, in some cases, transition into full-time entrepreneurship.
The Toll of the Side Hustle Economy
While side hustles offer financial benefits, they also come with challenges. Many Black women juggle multiple jobs, sacrificing work-life balance in the process.
The pressure to maintain both full-time employment and a side business can lead to burnout, ultimately impacting mental and physical well-being.
Additionally, systemic barriers in business funding and support continue to limit the growth of Black women-owned businesses.
Despite their entrepreneurial spirit, Black women receive disproportionately low levels of venture capital funding, making it harder to scale their businesses beyond a side hustle.
A Mixed Bag of Outcomes
The side hustle economy has undeniably provided financial relief and opened doors for Black women in business.
However, it also underscores the urgent need for structural changes in pay equity and economic opportunities.
Until meaningful progress is made in closing the wage gap, Black women will continue to turn to side hustles not just as a choice, but as a necessity.
