Education matters to running a business because it builds the skills owners use every day: bookkeeping, planning, marketing and managing people. It also widens your network and gives you a Plan B if the business closes. Education does not have to mean a degree: courses, free SCORE mentoring and SBA-backed Small Business Development Centers count too.
Key Takeaways
- A business owner needs practical skills in finance, planning, marketing and people management, and education is the fastest structured way to build them.
- According to the U.S. Bureau of Labor Statistics (BLS), 2025 unemployment was 2.8% for bachelor’s degree holders and 4.3% for high school graduates, so a qualification makes a stronger Plan B.
- BLS data shows about half of new private-sector establishments are gone within five years: 51.4% of those opened in March 2020 were still operating in March 2025.
- Free learning options exist: SCORE has more than 10,000 volunteer mentors whose mentoring is free, and SBA Small Business Development Centers offer advising and training.
If you talk to a successful entrepreneur about the importance of education to run a business, you may hear that “it’s not at all important and education is just a waste of time if you have entrepreneurship skills”.
On the other hand, if you talk to an entrepreneur whose company has struggled, you may hear “I wish I focused on my education too because the business just isn’t working for me and I don’t know what to do now”.
The point is that different people hold different views, and deciding which one is logical means weighing the evidence yourself. Think about it for a while. Suppose you skip the education and start your own business.
It’s been three years now, and your business just isn’t working for you the way you expected. In this situation, what exactly will you do?
If you then look for a job, employers usually look at your experience and your academic history. Without a qualification, your options can be narrower, and you may feel you have no choice but to keep struggling with the business.
In short, education is a major advantage if you want to work in a multinational company or run a business of your own. It does not always have to be a degree, but some structured learning, whether a degree, a course or a mentoring program, is hard to replace.
Here are three practical reasons education helps a business owner, followed by the data and a step-by-step plan.
1] You’ll Save Money
First of all, you’ll be saving a lot of money if you focus on your education and on top of everything if you are running your own business. For example, if you have a degree in accounting and finance and are building your own business, you may be able to handle bookkeeping and basic financial planning yourself in the early stages instead of hiring an accountant straight away.
It’s a startup, and you have the ability and education to work as an accountant for your company, yourself. In other words, education lets you handle some tasks yourself rather than paying someone else to do them. In a young business, that can be a meaningful saving, although specialist help is still worth paying for when the stakes are high, such as tax filings or contracts.
2] Networking
Even if you opt for online courses, you meet people and socialize with them. This socialization or this networking is imperative for your business. The connections you make at this stage can pay off later, as classmates and instructors become customers, partners, advisers or referrals.
When you meet different people that share the same interests as you do and when you interact with them, you get to learn a lot of new things, and some people even come in handy for your startup. The point is that networking is necessary for your business, and that’s something you can do when you reach out to different people, yourself.
3] You Should Always Have A Plan B
As said earlier, there is no guarantee that your startup will work. You cannot know in advance how long it will take for the business to become profitable, or whether it will close. This is why a Plan B matters.
You can’t just expect things to work your way all the time. It’s obvious that sometimes, things are inevitable, and you should be prepared to face the challenges.
Focusing on your education opens new opportunities and, above all, gives you a Plan B. If your business is not doing well, a degree or qualification makes it easier to look for a job with a good employer.
Conclusion
These are some of the reasons education is so valuable for running a business. However skillful you are, and however strong your entrepreneurship skills, investing in your education is worth it.
For many people, completing some education or training before, or while, starting a business is the safer path, and it will be useful in the long run.
What Does Education Mean for a Business Owner?
Education for a business owner is any structured learning that builds business skills. It includes a university degree, a vocational or professional qualification, an online course, and formal mentoring. A degree in accounting, finance, marketing or management teaches skills directly, but a founder with a degree in another field, or no degree, can fill gaps with targeted courses and advisers.
In the United States, two free or low-cost sources stand out. SCORE, a nonprofit resource partner of the U.S. Small Business Administration (SBA) that has served entrepreneurs since 1964, says its network of more than 10,000 volunteer mentors provides mentoring that is free for the life of a business. The SBA’s Small Business Development Centers (SBDCs) provide advising and training on access to capital, business planning, financial management, marketing, personnel administration, export assistance and sales.
What the Numbers Say About Education, Earnings and Business Survival
Official statistics do not prove that education makes a business succeed, but they show why education is a strong safety net. The BLS publishes median weekly earnings and unemployment rates by highest level of education. Its 2025 figures, which are 11-month averages that exclude October because of a federal government shutdown, are below.
| Highest education (U.S., age 25+) | Median weekly earnings, 2025 | Unemployment rate, 2025 |
|---|---|---|
| Doctoral degree | $2,307 | 1.8% |
| Professional degree | $2,294 | 1.9% |
| Master’s degree | $1,876 | 2.6% |
| Bachelor’s degree | $1,578 | 2.8% |
| Associate’s degree | $1,135 | 3.0% |
| Some college, no degree | $1,062 | 3.8% |
| High school diploma | $966 | 4.3% |
| Less than a high school diploma | $770 | 6.1% |
| All workers | $1,268 | 3.4% |
Business survival data explains why a Plan B matters. In its Business Employment Dynamics series, the BLS reports that 80.9% of private-sector establishments opened in March 2020 were still operating a year later, and 51.4% were still operating in March 2025, five years on. For the newest cohort, 77.9% of establishments opened in March 2024 survived to March 2025.
The SBA Office of Advocacy’s Frequently Asked Questions About Small Business 2026, published in February 2026, gives the long-run picture. From 1994 to 2022, an average of 67.7% of new employer establishments survived at least two years, 49.2% survived five years and 33.9% survived ten years. The same report counts 36,207,130 small businesses in the United States, 99.9% of all businesses, employing 62.3 million people, or 45.9% of private-sector workers.
Many business owners are themselves graduates. The U.S. Census Bureau titled a chart from its Annual Business Survey, based on 2019 data for owners of employer businesses and released in August 2021, “Most Business Owners Have a Bachelor’s Degree.” A Kauffman Foundation brief published in February 2020 found that 51.4% of employer business owners held at least a bachelor’s degree. These are the newest owner-education figures this article could verify.
Which Business Skills Can Education Teach?
The most useful education for an owner maps onto the jobs the owner actually does. The table below links common business tasks to the subjects that teach them and the free or low-cost help listed above.
| Business task | What to study | Where to start |
|---|---|---|
| Keeping books, pricing, cash flow | Accounting and finance | Accounting course; SBDC financial management advising |
| Raising money or getting a loan | Business finance, writing a business plan | SBDC help on access to capital; SCORE mentor |
| Finding and keeping customers | Marketing and sales | Marketing course; SBDC marketing and sales advising |
| Hiring and managing staff | Management and human resources | Management course; SBDC personnel administration advising |
| Selling abroad | International trade | SBDC export assistance |
How to Build Your Business Education Step by Step
- List your skill gaps. Compare the tasks in the table above with what you can already do confidently, and rank the gaps by how much money or risk they involve.
- Write a business plan. Writing one forces you to learn your market, costs and break-even point; see these essentials of creating an effective business plan.
- Get free expert input. In the U.S., request a SCORE mentor or book an appointment with your nearest SBDC; both are SBA resource partners.
- Take targeted courses. Short online courses fit around a job or a young business; here are the benefits of online education compared with campus study.
- Consider a degree if the gap is large. A part-time degree lets you keep earning; this guide explains how to work full-time and get your MBA.
- Keep learning after launch. Treat each problem, such as a cash-flow squeeze or a first hire, as a prompt to learn that skill properly.
Is a Degree Necessary to Run a Successful Business?
A degree is helpful but not the only route. Business education can come from a degree, a course, a mentor or hands-on experience, and many owners combine them. What official data shows is that higher education is linked to higher median earnings and lower unemployment, which matters because roughly half of new establishments close within five years. For a wider look at the debate, see whether higher education is still relevant, and for the community side of support, how to help entrepreneurs succeed in your community.
Frequently Asked Questions
Why is education important to running a business?
Education is important to running a business because it teaches the skills owners need daily, such as bookkeeping, planning, marketing and managing staff. It also builds a professional network and provides a fallback career if the business closes.
Do you need a degree to start a business?
A degree is not the only way to gain business skills. Courses, mentoring and experience also build them. A Kauffman Foundation brief published in February 2020 found that 51.4% of employer business owners held at least a bachelor’s degree, so many owners do have one.
What percentage of new businesses survive five years?
About half. According to the BLS, 51.4% of private-sector establishments opened in March 2020 were still operating in March 2025. The SBA Office of Advocacy reports a 1994-2022 average five-year survival rate of 49.2% for new employer establishments.
Where can small business owners get free business education?
In the United States, SCORE offers free mentoring through more than 10,000 volunteer mentors, and SBA Small Business Development Centers provide advising and training on finance, planning, marketing and more.
Which degree is best for running a business?
There is no single best degree. Accounting, finance, marketing and management cover the core tasks of running a business, and a general business degree or MBA combines them. The best choice fills the skill gap that matters most for your business.
