How Important is Education for Entrepreneurial Success?
With the increasing numbers of young and successful entrepreneurs in the self-employed sector, it makes us wonder how much of their success can be attributed to educational background and knowledge. Elite universities might offer a solid education, a social network, and access to resources that complement your studies, but how much can you take out into the ‘real world’ to apply on your own?
Many elite colleges take pride in job placement either during school as an internship, or immediately after college graduation. The corporate world is seemingly attractive to many fresh-out-of-college applicants, a place to get started on a lifelong career and climb the proverbial corporate ladder to get ahead. The idea of earning an MBA and then being offered a higher-paying job is also attractive to many; it’s usually the reason for pursuing graduate school in the first place.
Still, many graduates find great value in turning entrepreneurship and self employment instead. Learning to build and grow a business can be just as satisfying, (if not more in some cases) than working for a company or organization. It takes time, effort, and a strong work ethic, but the rewards often go well beyond a simple paycheck.
Not every entrepreneur is interested in working alone either; building a brand new company also involves creating jobs, training others to become leaders, and building an enterprise that provides value for the social community. Can this be learned in the classroom? Not necessarily, although many colleges and universities now offer entrepreneurship and ‘creative business development’ classes as part of their business curriculum.
While thousands of college-bound students complete a degree in hopes of landing their ‘dream job,’ others are turning to the lifestyle of entrepreneurship and growing businesses independently instead. Budding entrepreneurs have found their niche through simple trial and error, pursuing their passion and then finding out how to build a business around it. Others have an idea of building a company of their own—perhaps during college–and proceed by applying fundamental business skills learned in school to support their venture. Even without formal education, a smart and savvy entrepreneur can choose to take classes offered at community colleges or vocational schools and start to apply the skills directly.
Formal education may not be the cornerstone of entrepreneurship after all; it may even create risk aversion, as outlined in this Business Week article titled ‘Who Needs the Ivies?’. If you think you need a 4-year degree or 6-year education program before ‘making it’ as an entrepreneur or business leader, you’re missing out on an opportunity to simply get started, NOW!
Support for education, growth, and ongoing learning is available through many local and community organizations; the Small Business Administration, SCORE, and even programs funded by corporations make it easier than ever to launch that dream business with a strong foundation of resources. You can start online by exploring entrepreneur blogs, websites, and other free resources—college degree or not!
12 Comments
lawrence
September 12th, 2007 at 1:26 am
this is like a spectrum question to ponder…
it all depends on who you are, your work ethic..and where you’re striving to go, you know.
if you want to sell hot dogs and lemonade on a busy street corner, you don’t need a college degree - you don’t even need a high school degree for that matter.
now I’m not looking down on hot dog vendors…you could easily become a millionaire if you operate a relatively small chain of carts in a major metropolitan areas. but wisdom and education rarely hurts, so takeup all you can. but not to the point where it’s more than you need.
now if you want to start a complex internet company for example…like one that creates a new web browser - and you’re seeking investors, board members, etc…it’s required to have a good business degree, strongly preferred from an ivy league. if not, they won’t even bother reading your business plan
Graham Lutz, The Young Capitalist
September 12th, 2007 at 7:42 am
I did not go to college, and now that my friends are graduating, I make more money than all of them. Not only that, but I’m probably much more fulfilled than most of them, and I believe I am 4 years ahead in terms of life experience, not 4 years behind.
I see very few benefits of college when looking at it in terms of what you can learn on your own vs. what you can ONLY learn in college. If you ask me, there’s not much that you cannot figure out or learn on your own. The internet is making higher education all but obsolete.
Sabah
September 12th, 2007 at 8:06 am
Excellent point Graham, and good for you! Education can SUPPLEMENT many entrpreneurial endeavors and open you up to the learning experience. However, it does not guarantee success in any domain, and learning to become self-reliant and learn HOW to learn for yourself are essential to making it on your own. Keep up the good work!
Jon
September 12th, 2007 at 8:18 am
I have a BFA in graphic design but I am a very business-oriented person. I do completely agree with everything you’re saying about just getting out there and doing something that you have a passion for but I find myself sometimes needing that foundation that a business degree may have given me.
How do you write a business plan? Not that you need one to make a business work but it helps get your ideas organized. How do you manage your finances? so on and so fourth.
But again, I agree that you don’t need a degree in something to pursue it.
David Askaripour
September 12th, 2007 at 8:57 am
Lawrence:
“now if you want to start a complex internet company for example…like one that creates a new web browser - and you’re seeking investors, board members, etc…it’s required to have a good business degree, strongly preferred from an ivy league. if not, they won’t even bother reading your business plan”
Where are you getting that from? Believe me, investors care much more about the team / idea than the college you went to. That’s what I gather from the VC’s I know, at least.
Graham… that’s an excellent point you make! Many students who go to college and graduate are truly 4 years behind in life — so true. In fact, you have college students, nowadays, who “want” to stay at college for upwards of 5+ years… just so they can “delay” life. HAHA…
Expression Engine Templates
September 12th, 2007 at 10:00 am
David – I agree that most investors are interested in the idea and team, but its also interesting that when you look at the startups that have hit it big online, there are an awful lot of ivy leaguers and such in that list.
The families of the ivy league kids [probably] have more money to help them get rolling, but the families are probably also better connected with others that are looking to invest.
So really, its probably not so much about what you know, as who you know [once again].
David Askaripour
September 12th, 2007 at 10:25 am
Yes, I’d agree, it has a lot to with who you know and how well you’re connected — definitely!!
Victor
September 12th, 2007 at 12:47 pm
I think that education IS important. I think the question here is WHAT kind of education is important for entrepreneurs? We all need some kind of general knowledge in multiple special fields. So lets not write off education entirely. The best education may not come from formal schooling. It can and most likely will come from other sources. If your not learning something new every day, you’re staying behind. So lets learn what we need to learn, don’t over do it, implement it, get one with it, and lets get it, and get it big!
Leong
September 12th, 2007 at 5:00 pm
I am from Malaysia, I am a BBA student, currently doing my practical training. I wish to become a entrepreneur, may i know do i need to work in retailing field first to acquire the skill ?
Thanks
Zack
September 16th, 2007 at 5:10 pm
I am a Junior still in college, majoring in entrepreneurship, which may seem oximoronical, but I agree ademently that nothing beats ‘real-world” experience. Other than the social networking that college offers I feel as if I have been wasting my time and talent in the classroom. Metaphorically speaking I believe that College is the slow lane on lifes’s Highway. I am built to pass, and am merely looking for a good opening to switch lanes. GOOD ARTICLE!
David Askaripour
September 16th, 2007 at 6:08 pm
Ha, I like how you put that, Zack! Yeah dude, if you go to college, just go with there with an open mind and do all the networking you can! College is a great place to start a company — you already have the test market right there
Keep on thinking like you’re thinking. Keep Mind Petals updated on your progress.
How Important is Education for Entrepreneurial Success? « Yuppies CaFe
November 13th, 2007 at 9:39 pm
[...] Support for education, growth, and ongoing learning is available through many local and community organizations; the Small Business Administration, SCORE, and even programs funded by corporations make it easier than ever to launch that dream business with a strong foundation of resources. You can start online by exploring entrepreneur blogs, websites, and other free resources—college degree or not! (Source: Sabah Karim, posted in Mind Petals) [...]
Leave a Comment