Business degree or business mindset – what matters most?

There’s a common assumption that formal education, particularly a business degree, is the gateway to entrepreneurial success. Structured learning and an academic background sound like the right starting point.

But here’s the catch: real-world entrepreneurs often don’t operate by the book. They take risks and trust their gut. They launch fast and figure it out as they go. The more formally educated among them all too often overthink, overanalyse and have a need for full information before moving forward, and often end up waiting too long or never starting at all.

So, is a business degree beneficial to entrepreneurs? Or is it just one of many tools, and not always the most useful?

The myth of the must-have degree

You don’t need any qualifications to start a business in the UK. None. According to a study by the Kauffman Foundation, the average entrepreneur is in their 40s, and most have learned through experience.

Take Jo Malone. She left school at 13, taught herself everything she needed to know, and built one of the most recognisable names in British beauty. Her journey was built on intuition and bold decisions.

She started by creating bath oils as gifts for her facial clients. Her customers loved them. Word spread, and soon, the Jo Malone brand was acquired by Estée Lauder for millions. No marketing degree. Just action.

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• Why creating a company mission, vision, and values is important
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Stories like hers show that confidence, not qualifications, is often the catalyst for success. And she’s not alone. Many other successful founders, including Richard Branson, Alan Sugar, and Steven Bartlett, have proven that business know-how isn’t exclusive to lecture theatres.

Bartlett, who dropped out of university to start his first company, famously said: “The best time to start was yesterday. The next best time is now.”

And investor Paul Graham, co-founder of Y Combinator, has written extensively about how higher education favours analysis and perfection, while entrepreneurship rewards experimentation and momentum.

Graham said: “The danger is not that you’ll launch and it won’t work. The danger is that you’ll never launch at all.”

Other voices echo this sentiment. Reid Hoffman, co-founder of LinkedIn, once remarked: “If you’re not embarrassed by the first version of your product, you’ve launched too late.”

What business degrees really offer

A business degree can provide a useful grounding. You’ll cover topics like marketing, accounting, management, economics, and law. You’ll learn how organisations run, what markets look like, and how to think methodically.

Access to business hubs, networks, internship placements, and structured learning environments are also available, which can be very useful for some.

But there are downsides. Student debt, time out of the workforce, and theoretical learning that doesn’t always translate to real-world results. Degrees also tend to be generalised. And if your business idea is highly niche, academic training might not give you what you need.

Pros

• Teaches core business principles
  Provides essential knowledge in finance, marketing, operations, and strategy.

• Offers access to networks and placements
  Opens doors to internships, job placements, and networking with alumni and industry professionals.

• Signals credibility in some industries
  Enhances professional credibility, particularly in corporate sectors and consulting.

Cons

• Tuition fees and student debt
  Business degree courses can be expensive and lead to significant debt.

• Can delay your entry into entrepreneurship
  Time spent studying may delay launching a startup or business venture.

• Overemphasis on theory over practice
  Some courses may lack hands-on experiences, focusing more on academic concepts than real-world application.

Skills you actually need

Successful founders don’t need to memorise business law. They need:

1. Problem-solving and critical thinking

Running a business means constantly facing new problems, from pricing to customer feedback. Critical thinking helps you assess situations quickly, think clearly under pressure, and make informed decisions rather than reactive ones.

2. Resilience and adaptability

Markets shift, plans fail, and competition is fierce. Entrepreneurs need grit to keep going and the flexibility to adjust. Those who succeed learn from setbacks and keep moving.

3. Leadership and communication

Strong leaders inspire trust and bring others along with their vision. Whether persuading a client or managing freelancers, how you communicate shapes your business and brand from day one.

4. Financial literacy

You don’t need to love maths, but you must understand cash flow, where your money comes from, where it’s going, and how to stay in control. That includes budgets, pricing, profit margins, and taxes.

5. Creativity and innovation

Entrepreneurs are often problem-solvers at heart. Spotting opportunities and creating fresh solutions requires imagination. While you can’t teach creativity, you can definitely cultivate it.

These skills aren’t reserved for degree-holders. They’re developed through experience.

Take Ben Francis, founder of Gymshark. He started the fitness apparel brand from his garage while studying at university. But instead of finishing his degree, he dropped out to focus on the business full time. Today, Gymshark is a global brand valued at over £1 billion. In interviews, Francis has said:

“I just wanted to build something. I wasn’t thinking about building a billion-pound brand. I just loved the process of creating.”

Learn more about the business skills you will need to be successful in our extensive blog on the subject.

Learn by doing: Alternatives to formal education

Self-directed learning

Podcasts, blogs, YouTube channels, online courses – there’s a world of business education at your fingertips. Platforms like Coursera, LinkedIn Learning, and Udemy offer affordable training on everything from branding to bookkeeping.

Business podcasts like The Diary of a CEO, How I Built This, and The 10 Minute MBA give you insight into how real founders think and build. Books like The Lean Startup, Company of One, and Shoe Dog bring you inside the mindset of resilient entrepreneurs.

Mentorship and networking

Join a local founder meetup. DM someone on LinkedIn. Ask a business owner you know to grab a coffee. Real people with real experience are often willing to share what they’ve learned and save you from common mistakes.

Mentorship doesn’t need to be formal. A ten-minute phone call with someone who’s been there can be more useful than hours of coursework.

Experiential learning

Nothing beats launching. Test a minimum viable product, start a market stall, sell one product online, run a newsletter, build a waiting list, or try something.

You’ll learn more in a weekend of actual trading than in weeks of theory. Even if it doesn’t work, you’ll walk away with sharper instincts and a stronger foundation for next time.

When a business degree does make sense

If you want to work in finance, corporate law, or consulting, or raise venture capital from traditional investors, a business degree may give you credibility. It can also be useful for structured thinkers who want a formal foundation before launching.

Hybrid paths are also valid. If you can balance the load, pursuing an MBA while building a startup can combine theoretical training with real-world application.

Some entrepreneurs even return to education later, once they’ve hit a ceiling and want to add structure or credentials to what they’ve built instinctively.

Bottom line: Education is a tool, not a ticket

A degree can help. But it won’t start your business for you, it won’t give you courage, and it won’t protect you from failure.

The most successful founders launch before they feel ready. They build on intuition, learn by doing, and adapt faster than any syllabus can teach.

If you have an idea, don’t overthink it. Launch messy, learn fast, and iterate often.

The founder who moves first learns the most. The one still rewriting their business plan often never gets started.

So there you have it…

If you have an idea, don’t wait for the perfect moment. Register your business through 1st Formations and gain access to expert guidance from day one.

Leave a comment if you have any questions, and read more 1st Formations blogs to learn how to start and grow your dream business.