A College Degree and Entrepreneurship in the Millennial Generation

Recently, I was speaking at a local community college about the value of an entrepreneurial mindset. While there, one student asked me,

“How important do you think a college degree is to becoming a successful entrepreneur?”

The question was a bit awkward since I was the guest speaker with no college education and there were a bunch of young adults in the midst of their college education. Here is the essence of my reply.

When my kids graduated high school, I gave them three choices:

1. Go to college and get a degree so you can get a good job working for the man.
2. Join one of the branches of the military to learn a trade and some leadership skills.
3. Head out into the world of employment and get some work experience to attempt to build a career.

College:

When it comes to college, one of the fundamental prerequisites of an entrepreneur is the capacity for risk. A recent 2016 study of college graduates indicates the average student loan debt was over $37,000. This debt load has shown that it erodes the long-term entrepreneurial spirit of the millennial generation as well as limits their access to capital.

Peter Thiel, one of the entrepreneurs behind PayPal, LinkedIn, and Facebook, is so convinced that college debt squelches the entrepreneurial spirit that he created the Thiel Fellowship. Each year, the Thiel Fellowship offers $100,000 (paid out over a 2 years) to 20-25 students under the age of 20 to develop qualifying business ideas in lieu of enrolling in in college.

Military Service:

When it comes to joining the military, a study by the SBA finds that military veterans are more likely to become entrepreneurs than non-vets. However, the study explains that it is not military training, education, or its culture that predisposes individuals toward entrepreneurship. Moreover, this study states that individuals are less likely to become entrepreneurs the longer they serve in the military. So, why are military veterans more likely to become entrepreneurs than non-vets?

A logical conclusion is that something must be coming from within the individuals themselves to choose military service. I think that “something” is a propensity for risk and accomplishing a greater goal.

Work Experience:

When it comes to going to work directly out of high school, there is no substitute for real-world experience. Sometimes it is better to start out as the 2nd in command in a small business to learn the ropes and earn your entrepreneurial chops.

So with respect to a business’s success, academic education by the founder is often overrated. While many successful entrepreneurs have a formal education, few credit their success to what they learned in school. Moreover, an academic education generally teaches you how to be a good technician, which is only one part of the Anatomy of a Business Owner. There are also the skills associated with the CEO and President personas that are not taught in school.

A technical or academic education, while useful in helping you to be a successful employee and perhaps even a successful entrepreneur, may not align with your preference for learning style. Just like when it comes to content marketing, you must determine your VARK to see if college is your best path to learning.

What path will you follow to become an entrepreneur?