Does an Entrepreneur need an education?
The importance of a formal education in entrepreneurial success is something which generates much debate. There are some who believe that an education is not required, and that the ability to be an entrepreneur is something people are born with. Others, such as Matthew Bandyk with the U.S. News, believe that an education can be extremely valuable. I believe that an education has both merits and flaws, but is nonetheless crucial to any budding entrepreneur.
In addition to the benefits already proposed in the article, I feel that an education can have another major advantage: credibility. Entrepreneurs who start working on their idea immediately upon graduating from high school often find it hard to market it to potential venture capital firms and investors. Sure, there may be the occasional idea which could completely blow them out of the water, but often, it takes a lot more to convince these firms to invest in the idea. The credibility gained from a college education, especially one which is top tier, can instill confidence in the investors, and make them a lot more open to new ideas. An education would also help entrepreneurs in the event that their venture fails, and they decide to seek a more stable job.
Despite its many benefits, having an education has its costs as well. A four year course in a top university is a sizable amount, not considering the opportunity cost of lost income. Within college itself, there can be a lot of pigeon holing in form of majors and courses which could restrict the type of classes an entrepreneur could take. This in turn could affect and control his thought process, possibly hindering his ability to generate innovative ideas. Peers influences can also play a huge role in college, where the potential entrepreneur could be made more risk averse than he initially was. He might even end up dropping his ideas completely to go for a more mainstream job.
By no means is college a free lunch, as there are costs to go with the benefits that it brings. Picking the college which adds the most value is therefore crucial for any entrepreneur’s success.
