Many entrepreneurs have wondered if they needed a college degree to start a business or what degree would be appropriate for running a company. The truth is, no one needs a degree to build a company, but there are many benefits afforded to people who get their diplomas.
Why You Don’t Need a College Degree to Start a Business
Plenty of well-known entrepreneurs, like David Geffen, Mark Zuckerberg, and Steve Jobs, never went to college. US presidents Benjamin Franklin and Abraham Lincoln didn’t have degrees.
Here are a few good reasons to start a business without a degree:
- Avoid the high cost of a college degree
- Spend 4 years building a business instead of 4 years in a classroom
- Better ability to seize the moment and capitalize on the now
Thanks to the internet, entrepreneurs have access to millions of resources that can help them build a business education without a degree. The internet has disrupted education to the point that only 56% of small business owners have a college degree, down from 64% 10 years ago.
However, there are many reasons why you’ll want to consider education loan financing, and it comes down to difficulty. Running a business is hard enough with an education. Without one, you’ll need to really consider if you have the skills and entrepreneurial spirit to succeed.
When deciding if entrepreneurship is right for you, ask yourself the following:
- Can your idea wait until you get a college degree?
- Do you have real-world experience in the industry?
- Are you, and can you remain, financially stable?
- Do you have a strong, ride-or-die support system?
- Do you have a really good reason for skipping the degree?
It’s common to see statistics of high employment rates for college graduates, but how many graduates actually work in their field after graduating? Just 27%. So no, college isn’t a guaranteed path to success, but a business degree is more varied than other options.
Why You Should Consider Getting a College Degree
While it’s true that going to college isn’t necessary, there are some great reasons to pursue a business degree if you want to become an entrepreneur. Let’s look at what you’ll learn.
1. Communication Skills
Writing pitches and emails and participating in public speaking are essential skills you’ll need if you want to run a business. But, you’ll need exceptional communication skills to work on the most challenging projects. Conflict management is also taught in several college courses.
2. Marketing Skills
Without marketing, how are you going to sell your products or services? Scratch that, how will you convince other people to join your business as investors or employees without marketing? You’ll need to understand your audience to appeal to them, and college can help you do that.
3. Accounting and Budgeting
Many incredible businesses fail to succeed due to poor financial management. In fact, fear of finances can stop many budding entrepreneurs from reaching their true potential. Studying business can run you through the basics of accounting, so you can confidently drive it forward.
4. Project Management
Project management is a needed skill in every sector because it helps you manage the logistics of complicated projects. Several of these projects will appear on your desk when you’re running your business. College can prepare you to solve problems and prioritize your resources.
5. Protection from Failure
Failure isn’t something business owners want to think about, but it’s a high possibility with entrepreneurship. Without a degree, it will be difficult for you to re-enter the workforce. However, a business degree is useful in all industries, so you’ll have something to fall back on just in case.