Do You Need a Business Degree to Be a Successful Entrepreneur? What the Highest-Paid CEOs Studied

Excerpt

A business degree can help prepare you for entrepreneurship, but is it necessary? New DataCamp research reveals what America’s highest-paid CEOs studied in college, including why engineering nearly matches business administration. Explore what the findings mean for aspiring entrepreneurs and the skills needed to start and grow a successful business.

Key Takeaways

• Business administration is the most common field of study among America’s 100 highest-paid CEOs, with 39 executives having studied the subject.
• Engineering ranks a close second, appearing in the educational backgrounds of 34 CEOs, followed by economics, finance, law, and computer science.
• Harvard University has the most alumni represented in the study, but attending a prestigious university does not guarantee business success.
• Aspiring entrepreneurs do not necessarily need a business degree, although financial management, marketing, sales, and planning skills are essential.
• Professional experience, mentoring, online education, and practical business training can help entrepreneurs develop skills without returning to college.
• The research examines highly compensated corporate executives, so its findings should not be interpreted as proof that particular degrees lead to entrepreneurial success.

For someone thinking about starting a business, whether a business degree is necessary can be surprisingly hard to answer. A formal business education can provide a solid foundation in finance, marketing, and management, but many entrepreneurs start with backgrounds in engineering, technology, the arts, or fields that have little to do with running a company.

A new study from DataCamp, a data science education provider, offers an interesting look at the educational backgrounds of America’s highest-paid corporate executives. By examining the colleges and degree subjects of the CEOs featured in the 2026 Equilar 100 ranking, the researchers found that business administration was the most common field of study, followed closely by engineering.

The findings challenge the assumption that business leaders must follow a traditional business education path. They also raise a more relevant question for aspiring entrepreneurs: Is it the degree itself that matters, or the knowledge, skills, and experience someone develops along the way?

While running a major corporation is very different from building a small business, the research provides an opportunity to explore what education can contribute to entrepreneurial success and what aspiring business owners can learn outside the classroom.

What Did America’s Highest-Paid CEOs Study in College?

DataCamp analyzed the educational backgrounds of executives appearing on the 2026 Equilar 100 ranking, which identifies 100 of the highest-paid CEOs at major publicly traded companies in the United States.

Using information from official company websites and LinkedIn profiles, researchers identified the subjects these executives studied and the colleges they attended. Business administration emerged as the most frequently studied subject, appearing in the educational backgrounds of 39 CEOs.

Engineering was a close second, with 34 executives having studied the subject. Economics followed with 20, while finance, law, and computer science also appeared prominently.

The Most Common Degree Subjects Among America’s Highest-Paid CEOs

Rank	Degree Subject	Number of CEOs
1	Business Administration	39
2	Engineering	34
3	Economics	20
4	Finance	13
5	Law	12
6	Computer Science	10
7	Politics	5
8	Management	4
8	Accounting	4
8	History	4
8	Physics	4

Source: DataCamp analysis of the 2026 Equilar 100. Executives who studied multiple subjects may appear in more than one category, so the figures should not be added together.

The results suggest no single educational background is shared by every highly compensated corporate leader. Although business administration was the most common subject, many executives arrived in leadership positions after studying technical, scientific, legal, or other disciplines.

It’s also important to understand what the numbers do not tell us. The study examines educational backgrounds among a selected group of highly paid CEOs, not the likelihood that graduates of a particular degree program will become CEOs. Nor does it establish that one field of study produces better business leaders than another.

Nevertheless, the variety of backgrounds is worth examining, especially for entrepreneurs who worry that they lack the educational credentials needed to start a company.

Why Engineering Is So Common Among Top CEOs

Perhaps the most interesting finding is the strong representation of engineering graduates. With 34 CEOs having studied engineering, the subject trails business administration by only five executives in the DataCamp analysis.

Among the executives identified are Shankh Mitra of Welltower, RJ Scaringe of Rivian, and Niraj Shah of Wayfair. Their companies operate in very different industries, but the findings illustrate how technical education can be part of a path toward business leadership.

Engineering programs typically emphasize analytical thinking, problem-solving, systems design, and the ability to work through complicated challenges. Those skills can help when running a company, especially when business owners must weigh competing priorities, spot inefficiencies, and make decisions with incomplete information.

Consider someone starting a manufacturing business. Understanding how a product is designed and produced can help the founder evaluate suppliers, control production costs, and identify opportunities to improve quality. A software entrepreneur may use technical knowledge to build an initial product, assess development requirements, or communicate more effectively with programmers.

Even entrepreneurs outside technical industries can benefit from the same approach to problem-solving. A home-based business owner struggling with delayed customer orders, for example, might examine each stage of the fulfillment process to determine where delays occur rather than immediately spending money on additional staff or software.

These are not skills exclusive to engineers, of course. But they demonstrate why technical knowledge and business management can complement each other.

As we discuss in How Entrepreneurs Think and Act: 11 Instincts for Success, entrepreneurship often involves recognizing problems, questioning assumptions, and finding better ways to meet customer needs. A technical background can help develop those abilities.

What a Business Degree Can Teach an Entrepreneur

The popularity of engineering among top executives does not diminish the value of studying business. In fact, business administration remained the most common degree subject in the DataCamp findings, appearing among 39 of the 100 CEOs examined.

The study identifies Broadcom CEO Hock Tan and Citigroup CEO Jane Fraser as executives who studied business administration.

For aspiring entrepreneurs, a business education can provide exposure to several disciplines that become important once a company begins operating. Accounting and financial management help owners understand where money comes from and how they spend it. Marketing introduces the process of identifying customers, communicating value, and developing strategies to generate sales. Management courses can help future business owners understand organizational structures, employee development, and decision-making.

These subjects are especially relevant to people with a product idea or professional expertise but little experience running a commercial operation.

A talented baker, for example, may know how to create excellent cakes but still need to learn how to calculate ingredient costs, price orders profitably, manage inventory, and attract customers. A graphic designer opening an independent studio may understand design but be unfamiliar with contracts, financial forecasting, or the challenges of managing subcontractors.

These gaps can create serious problems if they are ignored. Being exceptionally good at producing a product or delivering a service does not automatically mean someone knows how to build a profitable business around it.

The U.S. Small Business Administration’s guidance on writing a business plan emphasizes the importance of understanding customers, analyzing the market, defining business operations, and identifying revenue streams. These are fundamental business planning activities, regardless of whether an entrepreneur learned them at a university or through experience.

A business degree can provide structured instruction in these areas, but entrepreneurs can also develop the same knowledge through continuing education, independent study, professional experience, and hands-on business ownership.

Does Going to a Prestigious University Make a Difference?

Beyond degree subjects, DataCamp examined the universities attended by executives in the Equilar 100.

Harvard University had the largest representation, with 17 of the executives having attended the institution. The University of Pennsylvania followed with eight, while New York University and Stanford University each had five.

Universities Most Frequently Attended by the CEOs in the Study

University	Number of CEOs
Harvard University	17
University of Pennsylvania	8
New York University	5
Stanford University	5
University of California system	4
University of Chicago	4
Massachusetts Institute of Technology	4
Brown University	3
Northwestern University	3
Yale University	3

Source: DataCamp. The University of California’s campuses were grouped together, and executives who attended multiple universities could be counted more than once.

The concentration of executives from certain universities is interesting, but it would be a mistake to interpret the ranking as proof that attending an elite institution leads to greater business success.

Selective universities may offer access to influential alumni networks, recruiting opportunities, and specialized educational programs. However, the study does not isolate the effect of attending these institutions from other factors, including prior academic achievement, family background, professional experience, or career opportunities.

It is also worth remembering that the research focuses on CEOs of large corporations. Corporate leadership positions often involve career paths, hiring processes, and professional networks that are quite different from those involved in starting a home-based business.

For someone planning to open an online store, launch a consulting business, or provide a specialized local service, attending a prestigious university is not a prerequisite. Understanding the market, offering something customers are willing to pay for, and managing the business responsibly are far more immediate concerns.

Can You Become a Successful Entrepreneur Without a Business Degree?

Absolutely. No one needs a business degree to start a company, though certain professions and regulated activities may require specific qualifications or licenses.

Many small businesses start when someone develops expertise in a field and sees an opportunity to turn that knowledge into a product or service. A teacher may launch a tutoring business, a mechanic may open a repair shop, or an experienced administrative professional may begin offering virtual assistant services.

In these situations, the founder’s industry knowledge can be a substantial advantage. Someone who has spent years working directly with customers may understand their problems and expectations more clearly than someone who has studied business concepts without practical industry exposure.

That doesn’t mean business knowledge is unnecessary. It means entrepreneurs need to identify the skills they already possess and recognize where they need additional training or support.

For example, a photographer may have strong creative and customer service skills but struggle with pricing and financial planning. Rather than pursuing an entirely new degree, the photographer could take a bookkeeping course, learn how to estimate project costs, and consult a mentor about establishing profitable service packages.

The same principle applies to individuals starting businesses later in life or after working in another profession. Their previous experience may have given them valuable skills in communication, project management, sales, customer relations, or technical problem-solving.

What matters is learning how to apply those abilities to the demands of running a business.

Our guide to the skills every entrepreneur needs to succeed examines several of the practical competencies that new business owners can develop, even without formal business training.

Five Skills That Matter More Than Your College Major When Starting a Business

No matter what you studied, starting and running a business requires a mix of skills that a diploma alone can’t measure.

The following five areas deserve particular attention from aspiring entrepreneurs.

1. Understanding What Customers Actually Want

One of the biggest mistakes new entrepreneurs make is assuming that enthusiasm for an idea automatically translates into customer demand.

A product may be innovative, beautifully designed, or technically impressive, but those qualities matter little if intended customers don’t see enough value to buy it.

Before committing significant money to a business idea, entrepreneurs should investigate the market. Who are the potential customers? What problems are they trying to solve? How are they solving those problems now, and what would persuade them to choose a new product or service?

The SBA recommends conducting market research and competitive analysis to understand demand, identify customers, and evaluate competing businesses.

This research does not necessarily require an expensive consultant or a large budget. Small business owners can begin by interviewing potential customers, studying competitors, reviewing industry information, and testing their offerings on a limited scale.

For entrepreneurs with limited resources, our article on researching your market on a tight budget offers practical ways to gather information before making major investments.

2. Managing Money and Understanding Cash Flow

An entrepreneur does not need to be an accountant, but every business owner should understand the basic financial numbers that determine whether a company can remain in operation.

Revenue alone does not tell the whole story. A business may generate impressive sales while struggling to pay suppliers, cover operating expenses, or replace inventory. If too much money is tied up in unpaid invoices or unsold products, even a profitable business can struggle financially.

Consider a small online retailer that receives a surge in orders during the holiday season. Sales may look excellent, but if the owner must pay suppliers before customer payments arrive, the business could run short of cash just as demand is rising.

Understanding cash flow helps owners anticipate these problems, plan expenses, and make more informed growth decisions.

Business owners should become comfortable reading basic financial statements, separating personal and business finances, preparing budgets, and regularly reviewing cash available to meet upcoming obligations.

Our guide to analyzing the financial numbers of your business explains how entrepreneurs can use profit, expenses, and cash flow information to evaluate business performance.

3. Learning How to Sell and Communicate Value

Some entrepreneurs excel at creating products or providing services but feel uncomfortable selling. They may believe that customers will recognize quality on their own, only to discover that attracting buyers requires consistent marketing and communication.

Successful selling begins with understanding why customers should choose your business instead of another option. This involves more than listing product features or offering the lowest price. Customers want to know how a product or service will solve a problem, save time, reduce costs, or improve their lives.

For instance, a freelance web designer may be tempted to focus on coding languages and technical capabilities when speaking with prospective clients. A small business owner considering the service, however, may care more about whether the new website will generate inquiries, make it easier for customers to book appointments, or improve the company’s credibility.

Being able to explain that value clearly can make a substantial difference in winning business.

Sales and communication skills can be developed through practice, customer conversations, feedback, and an understanding of what motivates purchasing decisions. Entrepreneurs do not need a marketing degree to begin learning these skills, but they do need to treat selling as an essential part of operating a business.

4. Making Decisions and Solving Problems

Running a business means making decisions without always having complete information. Entrepreneurs must decide how much inventory to purchase, whether to raise prices, when to hire assistance, and which opportunities deserve their attention.

These decisions often involve balancing competing considerations. Expanding too quickly can strain cash flow, while moving too cautiously may allow competitors to capture customers. Investing in new equipment might improve productivity, but it also creates financial commitments.

This is where analytical thinking, a skill commonly associated with engineering education, can be especially useful.

Business owners can improve their decision-making by reviewing available information, considering alternatives, estimating risks, and evaluating past decisions. Not every decision will work out as expected, but a disciplined approach makes it easier to recognize mistakes and adjust.

Equally important is the willingness to admit when something isn’t working. Entrepreneurs sometimes become attached to an original idea or strategy even when customer feedback suggests changes are necessary.

Learning to distinguish between persistence and stubbornness is an important part of business ownership. As discussed in our article on the common traits of successful entrepreneurs, adaptability and the willingness to keep learning can help business owners respond to challenges.

5. Building Relationships and Knowing When to Ask for Help

Entrepreneurship is often portrayed as an individual achievement, but even solo business owners depend on relationships with customers, suppliers, contractors, advisers, and other professionals.

A home-based entrepreneur may not have employees, yet still need an accountant, a website developer, a reliable shipping provider, or someone who understands the legal requirements of operating a business.

Developing relationships with experienced business owners can also provide valuable guidance. A mentor may help a new entrepreneur recognize problems that would otherwise take months of trial and error to understand.

Organizations such as SCORE offer access to business mentoring and educational resources, while SBA local assistance programs can connect entrepreneurs with counseling and other support services.

These resources are especially useful for people with strong professional skills but limited experience running a company. Instead of trying to master every aspect of business ownership alone, entrepreneurs can learn from people who have already faced similar challenges.

How to Build Business Knowledge Without Going Back to College

If you already have a degree in another field, or can’t afford the time and expense of a traditional business education, there are practical ways to build entrepreneurial knowledge.

First, identify the areas where additional training would make the greatest difference. An aspiring consultant may need help with pricing, contracts, and finding clients, while someone opening an e-commerce business may need to understand inventory management, online advertising, and fulfillment.

Instead of studying every business topic at once, it often makes more sense to focus on the skills needed for the next stage of the business.

An entrepreneur preparing to launch could begin by researching potential customers, estimating startup costs, and developing a basic financial plan. Once the business starts attracting customers, attention may shift to marketing performance, customer retention, and daily operations.

Free or low-cost educational resources can help make this process more manageable. The SBA Learning Platform provides training resources for business owners, and SCORE offers workshops and mentoring opportunities.

Online courses, community college programs, industry associations, and local entrepreneurship centers can also provide targeted instruction without requiring a four-year degree.

Practical experience remains an important part of the learning process. Entrepreneurs can test business ideas on a small scale, work with established businesses, take on freelance projects, or develop a product while continuing their current employment.

For those who want to begin without making a large financial commitment, our guide on starting a small business with limited capital explores ways to control initial expenses and build a business gradually.

The goal isn’t to collect as many certificates or credentials as possible. The goal is to build knowledge you can use to make better decisions and build a more sustainable business.

What the CEO Study Really Tells Aspiring Entrepreneurs

The DataCamp research offers an interesting snapshot of the educational paths of some of America’s highest-paid corporate executives. Business administration is the most common background, but engineering, economics, finance, law, and computer science are also well represented.

These findings remind us that leadership skills can develop through different disciplines and professional experiences. However, they should not be interpreted as evidence that choosing one college major over another will determine a person’s chances of becoming a successful entrepreneur.

The executives in the study represent an unusually small, highly compensated segment of corporate America. Their careers, resources, and opportunities differ considerably from those of someone starting a local service company or building a business from home.

For aspiring entrepreneurs, the more useful lesson is to view education as a source of skills rather than a qualification that determines whether someone can run a business.

A person with an engineering degree may need to strengthen their understanding of marketing and finance. Someone with a business degree may need to develop technical expertise or gain more experience working directly with customers. An entrepreneur without a college degree may already have substantial industry knowledge but need additional support in planning and financial management.

None of these backgrounds automatically guarantees success or failure.

Starting a business requires a willingness to keep learning, solve problems, understand customers, and adjust as circumstances change. A college education can help prepare someone for those challenges, but becoming a capable business owner continues long after formal education ends.

Ultimately, the better question may not be whether you have the right degree to start a business, but whether you are prepared to learn what your business needs you to know.

Research attribution: This article draws on educational background research conducted by DataCamp using the 2026 Equilar 100 CEO compensation ranking. The study examined educational information from company websites and LinkedIn profiles. The study counted degree subjects and universities separately when executives had multiple educational backgrounds. The entrepreneurship guidance and interpretations in this article are editorial analysis rather than findings established by the DataCamp study.

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