Why Are Many Startup Founders Dropouts?

Why Are Many Startup Founders Dropouts?
7 min read
31 December 2023

Lots of famous startup founders never finished college. Bill Gates dropped out of Harvard. Steve Jobs dropped out of Reed College. Mark Zuckerberg left Harvard. Why do so many successful startup founders drop out of school? As a dropout myself, I have some thoughts on this.

School Isn’t For Everyone

Not everyone is built for the classroom environment. Some people learn better by doing real work, not sitting through lectures. Some get bored and need more stimulation. Some chafe under the strict schedules and rules. And some are so excited by their ideas they just can’t wait to start building their company. The structured path of school doesn’t fit them well.

Starting a company is thrilling - you choose what to create, you follow your passion. For some, school starts feeling dull compared to the excitement of bringing a new idea to life. Once bitten by the startup bug, it’s hard to let it go to sit in a classroom.

Learning By Doing

In startups, you learn as you build. You talk to users, try new product ideas, see what works and doesn’t. This trial-by-fire style suits some people better than textbooks and tests. You learn real skills that matter today, not theoretical knowledge for the future.

Some kinds of intelligence and talent only reveal themselves when you put them into practice. For example, how do you know if you’ll be a great salesperson, manager or recruiter until you do those jobs? The classroom can’t test aptitude for real-world work the way the real world can.

Speed and Momentum

Startups move fast, school does not. In startups you iterate quickly, test with users, pivot ideas, scramble to stay alive. School has long lead times between problem and solution - you learn now to maybe use years later.

Once you have an idea you’re excited about, it’s agonizing to wait. School can feel excruciatingly slow when your brain is running a million miles an hour on your new concept. Successful founders often have extraordinary momentum and drive once they latch onto an idea. They put fuel on their own fire by getting started building right away.

No Proof It’s Needed

There’s no evidence you need a degree to start a successful tech company. Plenty of famous founders dropped out and did just fine. Of course you need strong technical abilities, but those can be learned outside school if you’re motivated. And running a startup relies on creativity, grit, hustle and people skills - things they don’t teach in lectures.

The barrier is not needing permission or credentials, it’s having the vision, determination and raw talent. Those are hard to measure in GPAs and test scores. If you have those entrepreneurial traits in spades, school may just hold you back from putting them to use.

Financial Pressures

It’s no secret that startup life is cash-strapped in the early days. Student debt and tuition are hefty expenses when you need every penny for your fledgling company. Some founders realize they need to drop out and work full time on their startups just to survive.

Of course no one has to drop out - many founders work on startups while staying enrolled. But it can be a financial relief not to carry heavy student expenses during an already high-risk time. Deferring school is a tempting option to ease the financial strain.

Fear Of Missing Out

For aspiring startup founders, nothing provides FOMO fuel like college peers launching successful companies. Reading about student-launched startups in school newspapers is envy-inducing. Seeing classmates get attention and funding for their ideas can be motivating or agonizing.

Even if you’re learning useful skills, it’s hard watching peers build world-changing startups while you’re stuck studying. The drive to drop out and join the startup gold rush is very real, especially at top universities crawling with ambitious entrepreneurs. Startup hype on campus can be hard to resist.

Youth and Energy

Economists will say experience brings increased earnings - but founders also know there’s value in the unbridled energy and bravery of youth. Startups are all-consuming pursuits that demand long hours and total dedication. Doing that while young and unencumbered by family obligations can be an advantage.

Twenty-something founders can pull all-nighters and be “all startup, all the time” more easily than older founders with more life commitments. The incredible pace of startup life is intrinsically connected to the youthful drive of founders like Zuckerberg who started Facebook at age 20.

Control and Independence

For some founders, dropping out is about wanting to take charge of their career and path. Even more than financial pressures, they balk at the required hoop-jumping and busywork of school when they’d rather be directing their energy toward creating value in the world. Control over one’s time and priorities is a key motivator.

Founders want agency over what they work on. Resenting the assignments and structures imposed by school can motivate wanting to leave. Even without specific startup ideas percolating yet, the desire for autonomy and self-direction leads some to quit school in search of control over their trajectories.

Bigger Dreams Than Degrees

Startup founders skew visionary - they imagine massively transformative solutions and businesses. You have to think big and disregard the impossible to build a world-changing company. Not everyone is wired that way, but the most successful startup founders are.

That huge vision can dwarf the more incremental goals of university. Getting the degree starts feeling meaningless compared to plans for revolutionizing entire industries. Dropping out is prioritizing grand ambition over credentials. For startup founders reaching for stratospheric goals, school starts feeling like unneeded baggage weighing down their rocket ships.

One Size Doesn’t Fit All

The norms of education don’t fit everyone. Standard academics-to-profession pipelines are not the only valid paths. Startup founders tend to have a streak of nonconformity that makes educational deviations more likely.

Society is shifting to embrace more personalized career flows, portfolios of varied experiences, and self-driven lifelong learning. Startup founders have always embodied the self-motivated learner identity; it makes sense that educational detours and departures are part of their journeys. Rather than judging dropout decisions, we can expand definitions of success to include diverse, personalized paths.

The Magic Can’t Wait

Startup founders are builders at heart - they want to create products and solve problems. They bias toward action and have a high metabolism for progress. School and startups operate at vastly different speeds.

Founders get antsy sitting still when their dreams feel just out of reach. Once conviction takes hold about ideas with promise, patience runs thin. Once you glimpse clues about what users want or how to delight them, the urge to deliver overtakes everything else. When the entrepreneurial magic starts sparking, the natural instinct is to start fanning those flames. That’s why for some founders, once promising startup ideas take hold, the magic can’t wait for distant graduation days - they have to start building now.

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partha c 2
I am the founder of Tactyqal Labs. Tactyqal Labs provides AI-augmented offshore marketers to do pre-defined tasks and helps entrepreneurs grow their businesses...

I am the founder of Tactyqal Labs. Tactyqal Labs provides AI-augmented offshore marketers to do pre-defined tasks and helps entrepreneurs grow their businesses and save up to 95% of employee costs.

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