Do You Need a Degree to Start a Business?

When considering the path to becoming a successful entrepreneur, the necessity of a formal degree is an often-debated topic. Insights from the U.S. Bureau of Labor Statistics (BLS) shed light on business success rates, revealing that while the commonly cited notion of more than half of new businesses failing in the first year isn't entirely accurate, the road to long-term success is undeniably challenging.  

About 20% of new businesses fail within the first two years, 45% struggle to survive beyond five years, and 65% face closure within a decade. Only a quarter of new businesses endure for 15 years or more (2). 

So, for the question, “Do you need a degree to start a business?” the short answer is “no.” If you’re interested in building a business, the success of your entrepreneurial journey doesn't hinge solely on formal education. Still, education plays a crucial role in providing aspiring business owners with a structured foundation and essential skills to navigate the complexities of the business world and help them become part of the percentage of business owners who last well into the future. 

Advantages of Earning a Degree for Entrepreneurs 

While entrepreneurs don't necessarily need a formal degree, higher education offers several distinct advantages: 

• Comprehensive Foundation: Earning a degree, especially in business, can provide an understanding of essential business topics like economics, accounting, marketing, law, and management. 

• Specialized Expertise: Tailored degrees provide specific insights into your field. 

• Structured Learning: Formal education offers a structured approach, guiding you through a curriculum that imparts basic knowledge and practical applications. 

• Networking Opportunities: Educational institutions create an environment conducive to networking. They can connect you with like-minded peers, faculty, and alumni while fostering valuable bonds for future collaborations and business growth. 

• Critical Thinking Development: Degree programs stimulate your critical thinking and problem-solving abilities. Developing these skills can help you approach the challenges of entrepreneurship with analytical insights and innovative solutions. 

• Enhanced Credibility: Holding a degree can bolster your credibility and legitimacy, potentially attracting investors, clients, and partners who value the discipline and commitment displayed through your educational accomplishments. 

• Access to Resources: Educational institutions often provide access to resources like libraries, research databases, expert guidance, and mentorship, offering a wealth of tools and support for business development.

Skills You Get Through a Degree Program 

Aspiring business owners can earn a broad range of knowledge through a degree program. Business degrees, in particular, instill a wide range of skills essential for entrepreneurial success: 

• Strategic Decision-making: Learn to make informed, strategic choices critical for business growth. 

• Critical Thinking: Develop analytical skills to solve complex problems effectively. 

• Leadership and Management: Gain proficiency in managing teams and resources efficiently. 

• Financial Acumen: Understand financial principles and learn to manage resources like an expert. 

• Effective Communication: Enhance your communication skills vital for negotiation and relationship building.

Traditional education offers several advantages, and specialized programs like the LSUS MBA in Entrepreneurship and Family Enterprise equip you with unique skills for success in your entrepreneurial pursuits.  

About the LSUS MBA with a concentration in Entrepreneurship and Family Enterprise  

You don’t need a degree to start a business. But if you want the skills, confidence, and network to grow a business that lasts, an LSUS MBA can help you get there.  

For entrepreneurs, the online LSU Shreveport (LSUS) MBA with a concentration in Entrepreneurship and Family Enterprise delivers both flexibility and a realistic impact. The program blends practical coursework like market analysis, financial feasibility, and strategic planning with a focus on innovation and leadership. 

Top-ranked for its affordability and academic quality, the LSUS MBA is designed for working professionals who want to take their business ambitions to the next level. You’ll graduate with a competitive advantage in today’s fast-moving economy. 

Ready to turn your business ownership dreams into reality? Explore the LSUS online MBA today and apply now!