Aim To understand self‐employed long‐term‐care workers' experiences of precariousness, and to unravel how their experiences are shaped at the intersection of gender, class, race, migration and age. Background In the Netherlands, increasing numbers of nurses and nursing aides in long‐term care (LTC) opt for self‐employment. Societal organizations and policy makers express concerns about this development, as self‐employment is seen as a risk factor for poor health. Self‐employment is not necessarily precarious work but can contribute to the precariousness of specific groups. Knowledge about inequities among self‐employed nurses and nursing aides in long‐term care is lacking. Design A participatory, qualitative interview study. The research team consisted of four academic researchers and five (un)paid care workers. Methods Semi‐structured interviews with 23 self‐employed nurses and nursing aides in LTC (2019–2020). Data were analysed from an intersectional perspective. Results First, we describe that feeling precarious as a hired employee—due to increasing workloads, health risks, poverty and discrimination—shapes care workers' choice for self‐employment. Second, we describe inequities between self‐employed care workers who could (financially) afford to turn to self‐employment as a health strategy and those who felt squeezed out of the organizations due to poverty or discrimination. They more often dealt with precarious work in the context of precarious lives, negatively impacting their health. Third, we describe how negotiating an entrepreneurial identity with a caring identity required material sacrifices and thus contributed to self‐employed care workers' financial precariousness, particularly as women. Conclusion Our findings indicate that working in LTC is becoming increasingly precarious for all care workers, both for hired and self‐employed, with younger, lower‐paid and racialized women with unpaid caring responsibilities seemingly most at risk for precariousness. Impact Our findings urge policy makers and care organizations to develop gender and diversity‐sensitive policy responses to address these inequities.