Is a College Degree Necessary for Success?

Is a college degree necessary to succeed in business?

Many sources claim that a college education is vital to a successful career, and there’s no doubt that it’s a popular path: Nearly 2.02 million people in the U.S. earned a bachelor’s degree in the 2021-2022 school year, according to Statista.

However, not all industries prioritize degrees over practical skills. Here’s how to determine whether college is right for you.

Reasons a college degree may be necessary for success

The value of a college degree has not decreased in the eyes of most employers. In fact, a degree is often necessary just to get your resume considered. 

“The way HR departments have evolved and hiring strategies have changed, [a college degree] has become an essential box to tick, something that must be on a resume for you to be considered for a position, even if the position wouldn’t require skills that you acquired while earning that degree,” said Valerie Streif, marketing manager at GetMyBoat.

With many employers requiring a college degree, this achievement can open doors to more opportunities. It can also lead to higher salaries by validating skill sets and knowledge. 

In addition, a degree can make your resume stand above those of applicants without a formal secondary education, giving you a competitive advantage while job hunting. College-educated applicants may have experiences and contacts that make them more marketable and prepared for the workforce, such as specialized knowledge and connections within an industry. 

College degrees are common even among entrepreneurs. According to Guidant Financial’s 2024 Small Business Trends report, 44 percent of small business owners have a bachelor’s degree, 31 percent have a master’s degree and 4 percent have a doctorate. 

Reasons a college degree may not be necessary for success

While a college degree has unmistakable advantages, not everyone sees it as necessary; many believe the cost outweighs the benefits. In fact, even once-prestigious degrees like MBAs are no longer yielding the same impact they once did. This has led to a decrease in perceived return on investment, with just 22 percent of U.S. adults believing the cost of a four-year degree is worth it in today’s market if they’re required to take out a loan, according to the Pew Research Center. 

“People can certainly be successful without a degree,” said Alex Membrillo, CEO of Cardinal Digital Marketing. “However, they need to choose a path or career where it’s not necessary.”

Of course, degrees are essential for certain fields, such as medicine and engineering. However, in other industries, such as creative or tech-driven fields, individual learning and on-the-job training may be alternatives to formal education. Some of the most successful entrepreneurs, including Steve Jobs and Mark Zuckerberg, built their success without a college degree.

“It is up to the individual to decide how they view and measure success,” said Jacob Dayan, partner at Consumer Law Group LLC. “There are many variables to help measure your own unique success. For example, you can find success without a college degree by taking on a family business at an early age. This is a success story for small business owners. It is up to the individual to find their own unique type of success that both challenges them and gives them purpose in life.”

Alternatives to obtaining a college degree

If you don’t have the resources or desire to attend college, there are other paths to take. Here are the most common alternatives to college. [Learn how people got rich without college.]

Trade schools

Trade schools are great for people who want to receive accelerated training and education for a given trade, such as elevator installations or radiation therapy. Upon finishing trade school, students typically receive a diploma and certification in their field. This route requires less money and time than university degrees do.

Many people assume that college more or less guarantees them a full-time job in their field, but that’s not the case: As of June 2024, about 40.5 percent of college graduates were underemployed, meaning they either did not have enough work or were engaged in jobs that did not use their skill sets, Statista reported. Further, an additional 4.5 percent of recent graduates were unemployed, according to another Statista analysis. 

[Read more about deciding whether to hire experienced workers or recent college graduates.]

Apprenticeships

Apprenticeships are similar to trade schools, but they offer more hands-on opportunities. Whereas you must pay to attend a trade school, you will usually be financially compensated for your work in apprenticeships. In essence, you are getting paid to learn skills that will benefit both you and others. 

According to Indeed, the highest-paying occupations with apprentices in 2024 included mechanics, elevator technicians, plumbers, electricians and carpenters. Becoming an apprentice also grants you access to a network of industry professionals and a glimpse into the work environment. 

As of April 2024, there were about 519,000 active apprentices in the nation, according to the U.S. Department of Labor. Apprenticeships also have benefits beyond job training. 

Self-made endeavors

If you choose not to pursue any of the options mentioned above, you must have a dose of motivation to start your own brand or network with those in your preferred industry.

“I had a financial advisor who was a retired PGA club pro,” Membrillo said. “While he did not have a college degree, he had over 25 years of business experience running a large golf club and pro shop. When he transitioned to financial advising, he obtained all the needed certifications and training from the national investment company he worked for.”

After years of on-the-job experience, sometimes a college degree becomes irrelevant. “If you start out by working for small businesses through personal connections and build up a strong reputation and a long resume of experience, you’ll reach a point where no one will question your education,” Streif said.

Sean Peek and Sammi Caramela contributed to this article. Some source interviews were conducted for a previous version.