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Is Entrepreneurship A Good Alternative To College?
Originally Published in Forbes, October 3, 2019. “Is Entrepreneurship A Good Alternative To College?” Written By Terry Powell, the Visionary Founder of The Entrepreneur’s Source.
I have an idea that may sound crazy at first, or even on the second go-around, but it’s a concept that may grow on you. Here it is: Instead of paying for your kid to go to college, you could use the money to help your son or daughter start a business.
To some parents, this may sound laughable. Of course, some 18-year-olds aren’t ready for the responsibility of running a business and should be in college, vocational school or the military. There are also plenty of young adults (and middle-aged and older adults) who simply don’t want to own businesses. So, I’m not saying that this is a good idea for everyone. But there are plenty of 18-year-olds who are clearly done with school. They simply are not interested in more homework and tests and aren’t at their best in a classroom. Instead, they show a lot of promise and entrepreneurial ambition. It’s those young adults I’m thinking of.
Is this a good idea for your child? Let’s take a look at some of the pros and cons.
Pro: Your kid won’t be saddled with student loan debt.
On average, a four-year degree now costs somewhere between $40,000 (at an in-state public college) and $150,000 (at a private university). We also live in a world where 3 million Americans over the age of 60 are still paying off their student loans — and are seeing their Social Security checks garnished as a result.
Meanwhile, plenty of people are on the fence about whether college is actually worth the money. For instance, a poll conducted by NBC News and the Wall Street Journal revealed that 49% of Americans agree that a four-year degree is worth the cost, but almost as many — 47% — said that a degree isn’t worth it “because people often graduate without specific job skills and with a large amount of debt.” Among the young people polled, 57% felt a four-year degree wasn’t worth the high price tag.
I can’t promise your kid won’t take out loans for his or her business and wind up having trouble paying those back. But they could avoid the crippling student debt that affects many graduates. Additionally, if you explore business ownership through franchising, much of the start-up work is done for you and you are following a business model that could get you to cash flow much quicker.
Pro: Your kid could pursue post-grad goals sooner.
Why do many people go to college? And why do many people go to business school specifically? To learn how to run their own business or work at a big corporation. If you have an entrepreneurial-minded high school graduate who is eager to implement ideas and gain real-world experience, they could learn better by doing.
Con: Your kid won’t get the “college experience.”
During their time on campus, your child could be exposed to Shakespeare, biochemistry, philosophy and numerous other worthwhile pursuits that may pique their interest or lay the groundwork for a future career. There’s also a lot to be said for dorm life, fraternities and sororities, and extracurriculars. A university atmosphere, in general, can be a great incubator not only for academic learning, but also for learning about who you are as a person.
Con: Your kid’s business could fail.
There is potentially a huge risk involved with helping your child start a business. They could run it into the ground and lose your investment. If you would feel better being involved on a day-to-day basis or are unsatisfied with your own career, this could be an opportunity to co-own a business. You could be the senior partner and your child the junior partner. In a sense, you would function as your kid’s college professor, teaching your son or daughter the ins and outs of the business world and helping them avoid making the sort of mistakes that could devastate a business.
Of course, only you — and your kid — can figure out the right path. The one that I suggest may be an unconventional path, when compared to college, vocational school, the military or even a minimum wage job, but for the right person, starting a business could be a viable option. Whatever you decide, I don’t think it’s ever a mistake to invest in your child’s future.
Are you interested in learning more? The Entrepreneur’s Source® can offer the education, awareness, and discovery through Your Career 2.0® and our network of award-winning alternative career coaches. They are highly trained, and many have been right where you were: at the same career crossroads, choosing to become empowered rather than just employed. They have the “cred” to shepherd you on your Journey of Discovery.