Business degrees are not for entrepreneurs.

The depreciating value of a [business] degree

I graduated from one of the top business schools in Canada. I had won a few competitions making me feel like I was better than my peers; I was ready to take on the world!

“My knowledge of Porter’s Five Forces, SWOT, cash-flow projections, and refined networking skills were going to propel me towards building and selling a great business.”

How wrong I was.

In the past, creators would build great product, cars, household appliances, drugs, buildings, etc; business gurus would then package and sell those products. Creators had no desire to deal with distribution, finance, and marketing, so this relationship between creatives and executives worked well. However, a lot of the time, the business guru got the glory; if creatives wanted to move up to the executive suite an MBA was required.

Now, the tables have turned. If you’re lucky, the executive suite is a basement with small windows and a broken toaster oven.

When we look at the creator + executive relationship; who needs who?

In the past it was a balance; a creator could build something amazing but without the executive it would sit in a lab collecting dust. The executive could put together a refined business plan but without the widget the plan was worth only the paper it was written on.

Today a creator builds something, puts it on kickstarter and instantly they have a marketing channel; if the product solves a pain, they have paying customers. Digital distribution and accounting is done with the click of a button and now they have a business.

An executive realizes a pain in the market; they do market research , put together a promotion and distribution plan, and for the next few years dream about how it could change the world. The end.

A few years back, I was at a demo day in Vancouver; 80% of the audience were individuals with an idea, without the skill to create it. The number one question I got was “are you an engineer?” When I replied “no,” the conversation quickly faded.

I can only provide insight as a commerce graduate; however, I assume any degree that does not give you the skill to create is not a degree for entrepreneurs. In fact, any degree that does not teach the skills to create is not a degree for someone seeking employment.

Paul Krugman wrote a post reflecting on the question, “Why does the United States have such high unemployment?”

For years people like me have been engaged in a running argument with people who insist that the reason we have high unemployment is that American workers don’t have the skills required for a 21st-century economy. It’s normally implied, although not always stated, that we’re talking about technological skills, knowledge of science and math, and in general the cutting edge. — http://krugman.blogs.nytimes.com/2013/09/30/a-sew-sew-labor-market/?_r=0

He argues that if this were true there would be millions of job openings for scientists, and mathematicians all paying over 100k each.

Granted, there are more job openings in these fields, compared to others. However, even if they were filled the U.S. would still face significantly high unemployment.

Paul references a New York Times article that showcases an industry paying higher wages due to a lack of skilled workers. The skill is operating sewing machines.

We have high unemployment because few people have the skill to create. We have spent years admiring consumption. “Look at the car he bought.” “How did he get that new phone first?” Instead we should have been admiring creation. Who cares who consumed it? Care about who built it. I admire them. I want to be like them.

I saw someone driving a Lamborghini the other day and I became jealous. Not of the consumer, but of the creator. What an incredible skill; I would love to be able to build an amazing looking and performing machine like that.