The short answer is no. A four-year degree is not required for starting a business. However, in many cases, a degree is certainly valuable as it provides skills that are foundational to business ownership. Some of these include:
- Business knowledge and skills
- Marketing and branding expertise
- Networking and professional connections
- Problem-solving and critical thinking
- Access to business resources
- Leadership and management skills
- Legal and compliance knowledge
- Financial literacy and investment strategies
- Technology and innovation
- Credibility and competitive advantage
8 Useful Degrees For Future Business Owners
While many degrees can be useful, these are some of the most relevant for business owners.
#1 – Business Administration
This degree covers all aspects of a business as it teaches management, operations, finance, and marketing. The skills learned with this degree can be applied to any business industry.
Even if you already have a bachelor’s degree, it’s worth considering a Master of Business Administration (MBA), which is the most popular graduate degree available.
#2 – Marketing
This degree covers market research, branding, advertising, and consumer behavior. It helps equip business owners to attract and retain customers. This is particularly well-suited for industries such as retail, e-commerce, and service-based businesses.
#3 – Finance or Accounting
This degree covers financial analysis, budgeting, investment strategies, and more. It enables business owners to manage finances and maximize profitability. Of course, these skills can benefit a wide-range of business ventures, but they’re particularly helpful for startups, consulting, and investment businesses.
#4 – Entrepreneurship
This degree covers starting and scaling businesses, offering tools and insights into launching and growing a business. It includes key skills such as financial management, marketing, sales, leadership, and communication. It is ideal for any aspiring entrepreneur.
#5 – Economics
A degree in economics covers market trends, consumer behavior, and global economics, helping business owners make informed decisions based on economic trends. This could benefit any type of business but is particularly applicable in international business, trade, and consulting.
#6 – Computer Science/IT
This degree covers programming, systems management, and data analytics, empowering entrepreneurs to create tech-driven solutions and streamline operations. It is particularly useful for tech startups, e-commerce, and software development businesses.
#7 – Communications
This degree covers public speaking, persuasions, and media strategies, fostering branding and relationship-building skills. While beneficial in most business pursuits, it’s uniquely helpful for PR firms, media companies, and customer-focused businesses.
#8 – Psychology
While you might not initially think of psychology as a degree related to business, it covers human behavior, motivation, and decision-making. This helps entrepreneurs to understand and manage teams, customers, and negotiations more effectively. It’s particularly helpful in coaching, consulting, and HR-driven businesses.
How to Choose the Right Degree for Your Business Goals
While every degree has something beneficial to offer your entrepreneurial pursuits, here are a few things to consider when choosing which degree to obtain.
- Passion vs. Practicality – What are your personal interests and business goals? Choose a degree that aligns with these.
- Future Trends – What is the projected market demand? Choose an industry and degree program that aligns with this.
- Skills Audit – Are there gaps in your skill set? Identify them and choose a degree to fill those gaps.
- Networking Opportunities – Do you know which degree you want, but wondering which school to attend? Consider schools with strong alumni networks and internship programs.
Ways to Build Business Skills Without a Degree
Remember, a degree is not a prerequisite to business ownership. It can certainly be helpful, but there are also other ways to obtain business skills. A few ways to do this include:
- Online Courses and Certifications – This includes platforms like Coursera, edX, or LinkedIn Learning.
- Mentorship Programs – Those with first-hand experience can be the greatest teacher. You can work with experienced business leaders to develop your business skills.
- Work Experience – Take the hands-on approach by working in a startup or corporate environment before starting your entrepreneurial journey.
- Networking Events – Join industry groups or attend conferences to expand your connections and education opportunities.
Are You Considering Business Ownership?
There is no doubt that education can enhance business success. No matter where you are in your entrepreneurial journey, it’s important to reflect on your business goals and take steps towards building the necessary skills for business ownership. If you’re ready to start a business, then FranNet is here to help. Our expert franchise consultants can evaluate your specific skills and match you with the perfect opportunity. We’ll walk you through the process of franchise ownership from start to finish. Schedule your free consultation to get started!