Entrepreneurship can be a great way to financial freedom, but building a successful business takes a lot of time, hard work and perseverance. Many young workers are left wondering when they should start a business and what education is required to do so.
A college degree is not required to start a business, but it certainly helps. College not only teaches students educational topics that can be helpful in starting a business, but also soft skills, like how to be lifelong learners.
Digital technology is disrupting almost everything, which includes education. According to the self employment statistics in FreshBooks’ 2019 Self-Employment in America Report, college education is becoming less of a prerequisite.
The percentage of self-employed professionals with college degrees has decreased considerably in the last couple years. In 2017 it was 64%, followed by 60% in 2018 and it now stands at 56% in 2019. This doesn’t mean people are not getting educated. The only thing that has changed is how they’re getting this education.
A fact which supports this point is how much those with and without college degrees earn. In the past the earning disparity between high school and college graduates was significant, this is no longer the case. The report reveals there is no difference in revenue between businesses founded in the last two years for both groups.
With graduation season around the corner, more than a few U.S. families are probably wondering just how much that college degree will be worth.
There’s little doubt education is associated with higher income, better financial decision-making and more wealth. However, issues that are harder for an individual to control — what type of family you come from, whether you get an inheritance, or how healthy you are — also play a growing role in determining your net worth, according to a new report by researchers William Emmons and Bryan Noeth at the Federal Reserve Bank of St. Louis.
Education “is important, but it’s not the whole story,” Emmons, a senior economic adviser at the St. Louis Fed, said in an interview. “You can’t simply send everyone to college and expect to solve all the social problems that we have, including problems in the job market.”