Does formal education help or hinder entrepreneurial spirit?

Mojca Svetek  |  4 October 2023

If you are interested in entrepreneurship and have ever searched the Internet for opinions on the value of higher education for entrepreneurs, you might get the impression that you could do as well or better without it. After all, Steve Jobs, Bill Gates, Mark Zuckerberg, Larry Ellison, and Michael Dell dropped out of college and went on to become some of the most successful entrepreneurs. The college dropout has become a prototype of a successful entrepreneur.

Fortunately, the impact of formal education on entrepreneurs has been extensively researched. Join us in this episode to discover whether formal education hinders or fuels the entrepreneurial spirit. We will delve into:

  • The correlation between formal education and the decision to become an entrepreneur;
  • The influence of formal education on entrepreneurial success;
  • The significance of formal education for entrepreneurs versus employees;
  • What makes education matter (and make it not matter).

Research articles:

  • Åstebro, T., Braunerhjelm, P., & Broström, A. (2013). Does academic entrepreneurship pay? Industrial and Corporate Change, 22(1), 281-311. https://doi.org/10.1093/icc/dts044
  • Braguinsky, S., & Oyama, A. (2007). Where does entrepreneurship pay? Available at SSRN 1022421.
  • Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301-331. https://doi.org/10.1016/S0883-9026(02)00097-6
  • Gort, M., & Lee, S. H. (2007). The rewards to entrepreneurship. Available at SSRN 1022583.
  • Hessels, J., Rietveld, C. A., Thurik, A. R., & van der Zwan, P. (2020). The higher returns to formal education for entrepreneurs versus employees in Australia. Journal of Business Venturing Insights, 13, e00148.  https://doi.org/10.1016/j.jbvi.2019.e00148
  • Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341-358. https://doi.org/10.1016/j.jbusvent.2009.09.004
  • Van Der Sluis, J., van Praag, M., & Vijverberg, W. (2008). Education and entrepreneurship selection and performance: A review of the empirical literature. Journal of Economic Surveys, 22(5), 795–841. https://doi.org/10.1111/j.1467-6419.2008.00550.x
  • Van Praag, M., van Witteloostuijn, A., & van der Sluis, J. (2013). The higher returns to formal education for entrepreneurs versus employees. Small Business Economics, 40(2), 375-396. https://doi.org/10.1007/s11187-012-9443-y