Do You Need a Degree to Start a Business?

Consider Your Long-Term Business Goals

Foregoing a degree might seem like an attractive option when you're considering the time and financial investment you'd make on a college program. However, data from the Bureau of Labor Statistics shows that business survival rates vary by year, industry, location, and economic conditions, with recent BLS reports showing that only 34.7% of private-sector establishments born in March 2013 were still operating 10 years later.¹ Without dampening your ambition to start a business of your own, keep in mind that there may be multiple steps in your journey toward business ownership. Rather than simply writing a business plan, getting a loan, and achieving immediate success, you may also need time to do the following:

• Find an office location and/or production facility
• Research relevant laws and regulations
• Plan out an internal business structure
• Register as a sole proprietor, limited partnership (LP), limited liability partnership (LLP), limited liability company (LLC), or a corporation
• Apply for any necessary business licenses and permits

Given all of this, consider whether a degree may be able to offer structured assistance as you plan to complete any of these steps.

Think About the Skills and Knowledge You May Need as a Business Owner

Take into consideration that for many business owners who gain attention for their success, there may also be skilled, formally trained employees helping support the company behind the scenes. Given that you'll most likely also need skilled and trained employees to help you along the way, it may be worth taking the time to hone and develop your own knowledge, skills, and formal training first.

Starting and growing a business requires a wide range of skills, from negotiation and decision-making ability to creative, analytical, and communication skills. There are also more industry-specific skills and knowledge you may need to develop before being able to write a comprehensive business plan, understand startup business fundamentals, or make key decisions about your company's structure and goals. For this reason, it may be helpful to explore the different types of degree options that are available and how each may uniquely help you prepare for day-to-day business operations management.

For example, a degree in business administration, marketing, or healthcare management may be favorable places to start depending on the products and services you plan to offer.

A Degree May Make the Start Smoother

While it's true that professional experience outside the classroom can provide you with real-world experience, the way in which you study and focus on developing new skills and knowledge can be very different inside the classroom. Especially in programs where instructors are industry professionals with real-world experience in their field. Students may be able to benefit from advice and knowledge of the types of potential problems and considerations they could face in starting their own business. Courses may also provide a baseline of essential entrepreneurship skills students may be able to translate to the real-world challenges of business ownership.

With a bachelor's degree in Business Administration, for example, you can work to develop a foundation across multiple aspects of business operations that you may be able to apply to multiple fields or industries. A business degree may offer an introduction to business management skills like:

• Basic accounting methods and principles
• Business analysis and operations
• Forecasting, budgeting, risk management, and financial management for entrepreneurs
• Marketing for small businesses and current technology
• Ethical and legal best practices in today's business environment

Starting a Business Without a Degree

Remember that offering a great product or service doesn't get you anywhere if you're at a loss on how to run and maintain the business side of your operations. You may be an excellent designer or salesperson; however, if you don't know the fundamentals of operations and project management or financial management, then you may be taking a bigger risk.

If you started a business and are unsure how to grow it, even earning an associate degree in Business Administration could provide you with a few basic accounting, marketing, and economic principles. You may also be better equipped to avoid common pitfalls like faulty cost-pricing, business tax filing, and other administrative challenges that come with owning your own business.

Networking Opportunities

Having a strong support network may be helpful in starting and growing a business. The types of decisions and daily tasks that go into starting your own business, particularly in the first months, may call for a supportive network. A strong alumni connection may also be a useful resource. Alumni who have forged successful businesses may be able to provide mentorship and direction when you're just starting out, as well as tips and resources for getting off the ground.

If you're asking yourself whether or not you need a degree to start a business, remember that your unique situation will ultimately determine the answer, including your prior education and work experience and the business you hope to build. While you can certainly start a business without a degree, earning a degree in which you can study and practice good analytical, marketing, managerial, and accounting skills may help you be better prepared in the long run.

Frequently Asked Questions

Ready to learn more? Explore the variety of business degree specializations at AIU today.

¹Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, 34.7 percent of business establishments born in 2013 were still operating in 2023at <https://www.bls.gov/opub/ted/2024/34-7-percent-of-business-establishments-born-in-2013-were-still-operating-in-2023.htm> Visited July 7, 2026.
²U.S. Small Business Administration, 10 steps to start your business. Retrieved from: <https://www.sba.gov/business-guide/10-steps-start-your-business> Visited on July 7, 2026.
³U.S. Small Business Administration, Apply for licenses and permits. Retrieved from: <https://www.sba.gov/business-guide/launch-your-business/apply-licenses-and-permits> Visited on July 7, 2026.

AIU cannot guarantee employment, salary or career advancement. Not all programs are available to residents of all states. REQ2237633 07/2026