Many would-be business owners dream of becoming the owner of their own company. There are as many ways to get there as there are types of business you can own. Find out what qualifications and degrees are needed to start a business.
The Key Takeaways
- Entrepreneurs and businessmen don’t require a college degree to be successful or start a company.
- Non-graduates in the United States are more likely than non-graduates to start their own business.
- A degree or certification in your field can enhance your skills and knowledge.
- Business, marketing, communication, and accounting are all useful degree programs.
- Learning can be gained from clubs, mentorships and professional associations.
Entrepreneurs and business owners must have a basic education
Many business owners provide services in addition to their own business. For example, a doctor may have their own clinic. You might also see the owner of an auto repair shop under the cars. Although it is common for shop owners to get involved, it’s not a requirement for entrepreneurs.
There are no formal educational requirements for business owners. In most cases, you don’t need to be a graduate of a university or certified by an agency in order to legally and financially run a business. Business skills can be used to run a medical practice or auto repair shop without providing the services yourself.
State licensing agencies may require that individuals be licensed in order to work as barbers, snow-removal workers, or health professionals. Check with the licensing agencies in your state to ensure you meet these requirements. 1
Note:
It is not mandatory, but it can be beneficial for entrepreneurs to attend classes, earn a certificate or get a degree in general business. These programs provide a structured way to learn more about business, can connect you with mentors, and can give you practical experience that you can apply later in your company.
Entrepreneurs, business owners and entrepreneurs can benefit from a variety of programs and degrees
You may want to consider getting a degree or certificate in the field you will be working in, especially if that industry is considered a skillful trade. A food truck operator may find it beneficial to get a degree in hospitality; an app developer could benefit from a certificate program. There are no set rules for what you need to achieve in post-secondary schooling. It may be useful to ask other professionals in the field about what they did.
Popular programs for entrepreneurs include:
- Businesses can benefit from a variety of business opportunities.
- Hospitality
- Marketers
- Financial Services
- Accounting
- Communications2
Note:
In general, those with a college degree are more likely than those without to start their own business. In the United States however, those without a degree are more likely to open a business. 3
Certifications for Small Business Owners and Entrepreneurs
No single certification is required by all business owners or entrepreneurs. If you are looking to improve your knowledge of a particular aspect of your business and want to get a certification, you can gain valuable tools. A certification in IT could, for instance, give you new skills that will help expand your business’s services. You can earn certifications that are geared towards small business owners. Certiport offers the Entrepreneurship and Small Businesses (ESB) certificate.
There are many ways to learn.
It takes time to learn a business. You should look outside of the formal education system or post-secondary school for ways to grow your knowledge. These resources can be equally useful for business owners.
- Seminars and Business Webinars
- Conferences and Industry Events
- Mentoring programs
- Clubs and business organizations, such as Chambers of Commerce
- Magazines, blogs and journals, as well as books and whitepapers
- Interviews with experienced professionals
Entrepreneurs who are “lifelong learners” might be more suited than others to the business world.
Requirements for Required Skills
Experience is valued by many professionals as being more valuable than formal education. This is a valuable asset in business ownership. You will be better prepared to own a restaurant if you grow up in the restaurant of your parents. Watching them work, understanding how recipes are created and learning the language is a great way to prepare. When you have been exposed to the responsibilities of being a businessman, it is more likely that you will develop those characteristics.
You will get a better understanding of your industry by doing the work you do for it. You will understand the unique challenges of that niche. You can’t learn this in college. You can succeed in business by developing the following skills:
- Ability to interact well with people from all backgrounds
- Commitment to success and dedication
- A keen eye for details and the ability of noticing when something needs to be changed or fixed
- Writing, reading and analytical skills that are excellent
- Prioritizing and managing time is a skill.
- Basic Finance, Bookkeeping and Business Taxes
- Understanding the market, supply and demand 4
To own a small business, experience is not necessary. Many entrepreneurs gain experience on the job, or hire consultants or talent from outside to help them transition into ownership or run the business.
The Career Prospects of Entrepreneurs
The success of your business depends on a number of factors including the industry you are in, the economic climate, and your own abilities. Bureau of Labor Statistics projected that an entrepreneur’s future is bright. The BLS predicted a 7.9% rate of growth for self-employed workers in 2026. This is slightly higher than the 7.4% projected for all workers.
As of August 2022, the average salary for business owners was $49.912. 7
FAQs (Frequently Asked Questions)
What is the minimum degree required to become a business owner
No degree is required to become a owner. It may be beneficial to your skills to have a business or marketing degree.
What are the certifications you need to become an entrepreneur?
You do not need a single certification to launch your business. You’ll still need to contact your local government to find out if you require any permits or licenses to start your business.
