What Degree is Best for Becoming an Entrepreneur?
Key Takeaways
- No specific degree guarantees a 100% success rate in the business world; however, some degrees focus more on helping students gain critical knowledge in business.
- The best degrees for entrepreneurs are business, computer science, and marketing.
- Successful entrepreneurs have various practical experiences, which is why many successful entrepreneurs don’t start their businesses until they are in their 30s.
Whether you’re already running your own business or considering building one, the right degree will help you establish more skills to help your business expand and flourish. Several types of college majors will help you gain entrepreneurial knowledge. However, some degrees are better at equipping individuals with the most critical abilities to become successful entrepreneurs.
The Value of Practical Experience
41% of business owners surveyed had a bachelor’s degree, 29% had a master’s degree, and only 4% had PhDs. These statistics show that a college degree is important in building a business.
However, technological advancements have made the competition of becoming an entrepreneur more difficult. While a formal education gives you the foundational knowledge and skills to build your own business, it cannot guarantee 100% success.
While a college degree can be a great way to gain both hard and soft skills for entrepreneurship, you can also gain the skills for managing a business successfully through practical work experience. Some people underestimate the power of practical experience in maintaining a business. If you’re one of these people who don’t value experience as much as their education, then you’re really not meant to be an entrepreneur.
According to Bloomberg, the most successful entrepreneurs are those built by entrepreneurs in their 30s. Entrepreneurs with a bit of life experience are often more likely to succeed in creating a profitable business than those in their early 20s.
Practical experience prioritizes action over theory. This is why top business schools require their students to participate in a simulation, do an internship, and create their own professional network to put theory into practice. These opportunities give students an overview of real-life scenarios.
Upon graduation, it’s highly advised for young graduates to work for a successful business before building their own. Why? Because this will provide them with the opportunity to gain practical experience in real-world professional settings. This will also expose them to various roles and responsibilities, which will help them identify their strengths and weaknesses.
Here are other benefits of practical experience for entrepreneurs:
- Increased risk-taking ability
- Enhanced problem-solving skills
- Expanded network and resources
Back to Top
3 Best Degrees for Becoming an Entrepreneur
So what are the best college degrees for aspiring entrepreneurs? The following three degrees are the most popular for students hoping to start their own businesses. They include:
Business
A business degree is a proven pathway to entrepreneurial success, especially in business administration. A bachelor’s degree in business administration equips you with the fundamental knowledge and skills to foster an entrepreneurial mindset. However, a master’s degree offers a comprehensive understanding of the dynamic nature of today’s business landscape, preparing you for practical challenges in your entrepreneurial journey.
An MBA helps future entrepreneurs gain valuable knowledge beyond the basics of an undergraduate degree. You’ll have an intensive understanding of internal and external stakeholders, advanced business concepts, strategic management, and leadership style. Additionally, MBAs have various specialized areas that allow you to extend your knowledge to other fields, such as:
- Entrepreneurship
- International Business
- Operations Management
- Business Law
- Information Technology
- Management Information Systems
Computer Science
Knowing how to leverage computer technology is crucial in today’s technologically driven business industry. Computer science degrees are no longer exclusive to those wanting to work in the tech industry.
Students in computer science gain a thorough understanding of foundational concepts. You’ll develop proficiency in programming languages, software and systems analysis, machine architecture, theoretical underpinnings of computing, and algorithmic thinking.
A bachelor’s degree in computer science puts you on a competitive edge as you gain valuable technical skills to streamline business operations and keep your company running smoothly. A thorough understanding of software and applications can help you devise plans to enhance customer experiences and drive innovation for more profits.
Majoring in computer science will help you stay ahead of new business technologies. You’ll learn about AI, machine learning, and robotics, all valuable in running your own business.
Did you know that 84% of business executives find AI helpful in achieving their business goals? It makes sense why a degree in computer science is increasingly becoming a strategic move for entrepreneurs!
The other benefit of this degree path is its accessibility and affordability. You don’t necessarily have to spend years and thousands of dollars for an advanced degree. Advanced knowledge and specific skills can be gained through short and affordable certifications and courses, reassuring you that a bachelor’s degree will provide the basics for more advanced business and technology topics.
Marketing
A company’s ability to succeed is primarily determined by the marketing plan it uses. Regardless of how good your products and services are, your marketing strategies and ad campaigns can make or break you. And in a market with stiff competition, your marketing skills may be the only way to make your business stand out.
A bachelor’s in marketing degree program teaches students the key elements of innovative marketing strategies, including:
- Branding
- Target Market
- Clear Value Proposition
- Multichannel Marketing Plan
- Marketing Measurement and Analytics
Proficiency in these key elements will help you build tailored marketing strategies that will keep your company competitive and profitable. A marketing degree program will help you understand the specific key performance indicators for better business management.
Marketing degrees evolve with the times, adapting to include topics involving the latest technology and trends. You’ll be knowledgeable about leveraging social media platforms, email marketing, and pop-up advertising effectively, among other key marketing tools, ensuring your business stays relevant and competitive.
Efficient marketing knowledge will also help you build and maintain a reputation.
Back to Top
Trends in Entrepreneurial Degree Choices
Pursuing a college degree in the hopes of becoming an entrepreneur is an excellent way to become a profitable business owner. Some prospective college students might think that pursuing an entrepreneurship degree program is the only way to gain essential entrepreneurial skills and knowledge. Although “entrepreneurship” is often considered a stand-alone major, you’ll have a wide range of academic opportunities that will be as valuable and helpful as an entrepreneurship program.
Although we have taken a look at the three most popular college degrees for would-be entrepreneurs, there are a number of other degrees that can also help you to gain the transferable skills necessary for success. For the most part, becoming an entrepreneur does not require a particular degree.
The following college majors are not as popular as the first three, but they are currently trending for aspiring entrepreneurs, including:
Communications
Excellent communication skills are necessary to build strong relationships, foster understanding, and navigate the complexities of personal and professional interactions. A communications degree will equip you with the necessary know-how to communicate with a multitude of people. A communication major also includes corporate communications or investigative journalism topics to help students prepare for specific career markets.
Here are other skills you’ll gain with a communications degree that will be helpful for business operations:
- Research
- Marketing
- Public communication
- Human resources
Finance
From financing a business to taking out loans, understanding financial principles and being financially literate is an important skill for aspiring entrepreneurs. A finance degree will help you learn about money management to sustain successful businesses.
This major will help you do the following:
- Read and interpret financial statements
- Budget and forecast future outcomes
- Understand and work with numbers
- Understand risk and reward
- Communicate financial information to non-financial individuals
Accounting
As a business owner, it’s beneficial to know the ins and outs of financial statements, taxes, and the financial health of a business. This knowledge can all be attained through an accounting degree. Additionally, proficient accounting knowledge will save you from headaches and additional expenses of outsourcing the accounting needs of your business.
Proficiency in accounting will help you do your own taxes, track cash flow and growth, and balance budgets.
Economics
Every entrepreneur needs to know how markets work to have a profitable business. An economics degree will help you make informed business decisions by teaching you how supply and demand interact to determine prices. Moreover, an economics degree will give you solid human behavior and market research knowledge, which will help your venture attract more clients and generate more income.
Environmental Science
Incorporating sustainability into your business idea and strategy is no longer optional. Businesses are now required to focus more on just profits, requiring firms to adopt the triple bottom line.
Sustainability projects have the potential to not only promote social and environmental change but also enhance an organization’s overall performance and profitability.
An environmental science degree will provide you with several benefits, including:
- Protect your brand and mitigate risks
- Attract a motivated, skilled workforce
- Improve your research skills
Psychology
A psychology degree is a versatile degree that will prepare you for various fields, including entrepreneurship. This major will help you understand the human mind and consumer behavior. Additionally, you’ll develop proficiency in creating relationships and communicating with other people that will help your business grow.
Other skills you can gain from a psychology degree for entrepreneurship careers include:
- Analytical skills
- Ability to lead groups
- Assess people and their abilities
Engineering
Engineering has various specialties and subspecialties. From industrial to mechanical engineering, you have a lot of choices.
An engineering degree is one of the best for climbing the corporate ladder and generating money. However, recent advancements have allowed engineers to explore entrepreneurship.
An engineering degree will help you to gain three of the most important characteristics of an entrepreneur:
- Problem-solving
- Leadership
- Innovation
Back to Top
Student Submitted Questions on the Best Degrees for Becoming an Entrepreneur
Ryan asks, ”What college degree is best for starting and owning a business?”
Dr. Jed Macosko’s answer: The best college degree for aspiring entrepreneurs is business. This degree program covers topics that focus on starting, maintaining, and expanding a business. A bachelor’s degree in business might help you acquire foundational training, but you’re often required to pursue an MBA for advanced knowledge.
Julia asks, ”What college or business school do most entrepreneurs go to?”
Dr. James Barham’s answer: Stanford University and the University of California, Berkeley, are the top schools of entrepreneurs. These US universities are known for producing the most entrepreneurs. You can expect a rigorous academic journey and intense competition at both Stanford and UC Berkeley.
Daniel asks, ”Is it necessary to complete a degree to become a successful entrepreneur?
Dr. Jed Macosko’s answer: While a college degree provides valuable knowledge in building and running a business, it does not guarantee success. In fact, you don’t often need a degree to start a business—not unless you’re planning to run a medical clinic, pharmacy, or legal services business, which requires you to obtain a degree by law.
Your success as an entrepreneur will depend on your practical skills and aptitude.
