KeyPoint.Plus

We’ve been conditioned to believe that the well-trodden path of a four-year college degree is the ultimate key to unlocking a successful future. But in a rapidly evolving world, particularly when it comes to wealth creation, is this traditional route still the undisputed champion? Or is there a compelling alternative in dedicating those same four years to the challenging yet potentially rewarding journey of entrepreneurship?

Society undeniably holds a certain reverence for the college graduate. We often equate a degree with education itself and use it as a yardstick for measuring success. But is a piece of paper truly the sole indicator of an educated individual or a predictor of financial prosperity? And what is our actual measure of success – societal approval or tangible wealth? The reality is, the landscape of wealth is shifting, and it’s time we honestly assess if our societal values and expectations have kept pace, especially considering that the traditional academic path isn’t the right fit for everyone.

Let’s dissect this complex issue. There was a time when a college education almost guaranteed a solid return on investment. However, the landscape is changing. Consider that the average cost of a four-year state university degree is approximately $102,000, and a private university degree can soar to around $218,000 (Investopedia). With such a significant financial outlay, we must ask some critical questions: Are all degrees created equal in terms of value? Will they all translate into significant financial benefits? What is the current return on investment for a college degree? Should we perhaps re-evaluate the sheer number of academic majors available, or strive for a more equitable financial outcome across different fields of study? Often, the traditional education system steers individuals towards financial security through wages – but does earning a wage truly equate to building lasting wealth?

Consider the societal expectations surrounding financial success. Many parents still envision a college degree as the surest ticket to a comfortable life. Yet, the reality for many recent graduates is often stark: entry-level wages that can be surprisingly lower than those of individuals with vocational training or entrepreneurial experience. The common employer refrain is “you need experience, not just a degree.” But how do you gain that experience without the initial degree, unless you have the advantage of family connections or influential mentors? This creates a significant question mark over the initially anticipated financial benefits of a traditional four-year education. In fact, a significant portion of college graduates find themselves underemployed. Studies show that over 50% of graduates with only a bachelor’s degree are underemployed a year after graduation, working in jobs that don’t typically require a college degree, and this number only slightly improves to 45% even a decade later (Abel et al.; Higher Ed Dive). Many graduates struggle to afford basic necessities like rent and loan repayments on their starting salaries, leading some to question whether entering the workforce directly might have been a more viable option.

So, why isn’t society more attuned to this evolving reality? Perhaps it boils down to the perceived initial investment. While it might sound blunt, consider this: we often pour significant resources into our children’s success through traditional schooling, yet the return isn’t always guaranteed. Market fluctuations, inflation, the choice of major, industry demand, academic performance, and networking all play a role. Yet, students can easily find themselves burdened with six-figure debt for a degree they might not even directly utilize. Shockingly, roughly 37 percent of college graduates are working in jobs that don’t require a degree (Abel et al.). Let’s put that in perspective: for every three graduates, only about two are working in their field of study. So, what are the others truly learning for that hefty investment? Often, it boils down to the discipline of following instructions and completing assignments – valuable skills, no doubt, but are they worth $100,000+? It’s a question worth serious reflection.

Now, let’s explore the alternative: dedicating those same four years to building a business, embracing the path of entrepreneurship. The reality is, it will be challenging, but absolutely possible – just as navigating the academic world presents its own set of difficulties. The key here is to identify your child’s genuine interests during their high school years and invest heavily in nurturing those passions. For some, traditional learning is the desired path, and that’s perfectly valid, especially for degrees with a clear and high market demand. But for others, the entrepreneurial route holds immense potential. Invest in their exploration, connect them with relevant mentorship programs, and support their inevitable trial-and-error process. Help them launch their ventures, build their online presence, hone their interpersonal skills, and develop their professional network. Instill in them the discipline to follow through on tasks and produce tangible results. Just as academic assignments lead to a diploma, their entrepreneurial “trials” – the experiments, the prototypes, the market tests – can ultimately yield a profitable and impactful business. While startup failure rates can be high, with around 20% failing in the first two years and 45% within the first five (Exploding Topics), the potential for high growth and direct correlation between effort and reward can be incredibly motivating.

The focus here, just like in choosing a specific college major, should be on concentrated effort in one area. Replicate the structure and dedication expected in academia but apply it to a potentially more lucrative and multifaceted learning experience. Imagine: after four years of focused entrepreneurial endeavor, your child could possess a strong professional network, a diverse range of practical skills and perspectives, and the ability to create products or services that solve real societal problems and impact their community. They will have firsthand knowledge of various business aspects – from ideation and prototyping to securing investment, leading teams, working independently, and mastering the art of sales and business setup. In contrast, a traditional employee might spend those same four years (and many more) performing a specific, often repetitive task within a larger organization. Worse still, the very entrepreneurs who create thriving businesses often rely on the skills and labor of employees to bring their visions to life – a thought that warrants deeper consideration. Notably, data suggests that microbusiness owners without a college degree can contribute similar amounts of income to their household as those with a degree, with a significant portion earning six-figure incomes (GoDaddy Venture Forward).

Ultimately, both paths involve risk. There’s no guarantee of immediate employment and the desired salary after graduation, just as there’s no foolproof formula for entrepreneurial success. You might face difficult bosses and stagnant wages in the traditional workforce, just as an entrepreneur might grapple with initial failures and inconsistent income. Layoffs are a stark reminder of the inherent insecurity in relying solely on employment. Starting over in an unrelated field can mean beginning at the bottom of the wage ladder. The choice, therefore, requires careful consideration of individual strengths, passions, and risk tolerance.

The question of initial funding for an entrepreneurial venture is valid. Perhaps the savings earmarked for college could be redirected as seed capital. Explore small business loans and grants as alternative funding avenues. It’s worth noting that many startups begin with less than $5,000 in funding (Apollo Technical), making it a potentially more accessible initial investment than a four-year university. This could be an investment in a potentially higher-yield future.

In conclusion, while society has historically championed the traditional four-year college degree as the primary route to success, and while parents naturally guide their children towards this familiar path, it’s crucial to recognize that it is not the only way. It doesn’t automatically guarantee generational wealth, and choosing an alternative path does not equate to failure. It’s time to shift our perspective, encourage the early development of discipline and focus in chosen areas, and be willing to invest in entrepreneurial pursuits with the same dedication we apply to funding higher education. Even if an entrepreneurial venture doesn’t immediately lead to massive success, the skills, resilience, and real-world experience gained will undoubtedly provide a powerful foundation for future learning, whether that includes a more focused and informed college experience or continued entrepreneurial endeavors. The key is to empower the next generation to explore diverse paths and define success on their own terms.

What are your thoughts? Share your experiences and perspectives on the value of college versus entrepreneurship in the comments below.

---

Works Cited

Abel, Jaison R., et al. “Do the Benefits of College Still Outweigh the Costs?” Federal Reserve Bank of New York, 6 Feb. 2024, liberty street economics.newyorkfed.org/2024/02/do-the-benefits-of-college-still-outweigh-the-costs/.

Apollo Technical. “20 Entrepreneur Statistics You Need To Know (2025).” Apollo Technical, 4 Jan. 2025, apollotechnical.com/entrepreneur-statistics/.

Exploding Topics. “Startup Failure Rate Statistics (2025).” Exploding Topics, 26 Apr. 2025, explodingtopics.com/blog/startup-failure-stats.

GoDaddy Venture Forward. “Entrepreneurship Doesn’t Require Four-Year Degree, Says GoDaddy.” Venture Forward, 17 Sept. 2024, www.godaddy.com/ventureforward/entrepreneurship-doesnt-require-4-year-degree-says-godaddy/.

Higher Ed Dive. “Half of Graduates End Up Underemployed — What Does That Mean for Colleges?” Higher Ed Dive, 25 Mar. 2024, www.highereddive.com/news/half-of-graduates-end-up-underemployed-what-does-that-mean-for-colleges/710836/.

Investopedia. “Cost of College in the US.” Investopedia, 29 Aug. 2024, www.investopedia.com/financial-edge/0912/the-real-cost-of-college.aspx.