HOW IMPORTANT IS EDUCATION IN CREATING SUCCESSFUL ENTREPRENEURS?

Abstract

The purpose of this study is to analyze the importance of formal and informal education in creating successful entrepreneurs. We started from the fact that the great successful entrepreneurs of the world gave up their studies and did not continue a formal education, and yet we all use their products and services for which they solve a number of problems for us. We conducted a focus group with 10 IT entrepreneurs, in which we discussed with them about the importance of education in creating successful entrepreneurs. Entrepreneurs said that education is extremely important, noting that there are a number of ways in which an entrepreneur can get an education.

Full text

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HOW IMPORTANT IS EDUCATION IN CREATING SUCCESSFUL
ENTREPRENEURS?
Lorena Florentina DUMITRAȘCIUC
Alexandru Ioan Cuza University, Iași, Romania
Doctoral School of Economics and Business Administration
lorena.popescul@gmail.com
Abstract: The purpose of this study is to analyze the importance of formal and informal education in
creating successful entrepreneurs. We started from the fact that the great successful entrepreneurs of the
world gave up their studies and did not continue a formal education, and yet we all use their products and
services for which they solve a number of problems for us. We conducted a focus group with 10 IT
entrepreneurs, in which we discussed with them about the importance of education in creating successful
entrepreneurs. Entrepreneurs said that education is extremely important, noting that there are a number of
ways in which an entrepreneur can get an education.
Keywords: entrepreneurs, formal education, non-formal education, success.
1. INTRODUCTION
Today, we notice that information and communication technologies are changing
more rapidly, so the topic of education and learning becomes a broader topic to be
debated (Ilie, 2019). In this respect, the results of entrepreneurial learning should meet
the social and economic needs of all stakeholders involved in the community of which it
is a part (Fayolle, 2013). If we refer to lifelong learning, we believe that lifelong learning
is as important as formal education, which takes place in institutions, universities and
schools (Ilie, 2019). Also, due to inherent changes, the perishability of knowledge occurs,
so lifelong learning is needed (Dromereschi, 2013). In terms of entrepreneurship, it
represents the strongest economic force in the world (Kuratko, 2005).
Thus, both formal and informal education contribute to the improvement and
development of entrepreneurial skills, which are closely linked to the development of the
economy (Baseska-Gjorgjieska, 2012, McMullan and Long, 1987). Entrepreneur
education is an integral component of the community to which they belong, and they
must benefit from innovation centers, business incubators, science parks, technology
transfers, and venture capital operations (McMullan and Long, 1987).
In addition, it is education that creates new opportunities for entrepreneurs. Thus,
it is important to analyze how the entrepreneur succeeds in developing and perfecting his
people (Maxwell, 2005). Also, entrepreneurs need to constantly learn in order to support
their business, considering that many companies go bankrupt within the first five years of
activity (Kiyosaki, 2014). On the other hand, there are a number of other ways in which
an education can be obtained. This is the case of many successful entrepreneurs in the
world, renowned for having dropped out of education, either because of a lack of interest
in formal education, or because of financial, environmental or even family problems.

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However, the great successful entrepreneurs who did not attend a formal education have
made a number of remarkable changes in the society we live in now. Which makes us
think about to the following two questions: "What do all these entrepreneurs have in
common?" And "Is it enough that these entrepreneurs have been self-taught?"
2. THE IMPORTANCE OF EDUCATION IN CREATING SUCCESSFUL
ENTREPRENEURS
As a rule, entrepreneurs are creative, take risks, have leadership skills and have a
great desire to succeed in their own business. However, without having a proper
education, their talent may not be sufficient (Maxwell, 2008). If the talent of the
entrepreneurs were enough, then the most influential and efficient people would always
be the most talented (Idem). Therefore, talent alone is not enough, but it offers an
advantage in front of others, until the moment the entrepreneurs get to use it anymore.
Entrepreneurship educators and researchers need to take a series of measures to create a
community at the professional level that aims to share common values and goals, in order
to fundamentally change both nature and practice and the effects of entrepreneurial
education (Fayolle, 2013). To cultivate the talent of entrepreneurs they need to practice
because this is just a starting point (Maxwell, 2008). Especially since every entrepreneur
has a talent they can develop. This is why they need formal education as well as informal
education (such as the support of a life coach to help them realize their potential,
mentors, etc.).
Regarding the future of entrepreneurial education, it refers to the relevance,
usefulness, coherence, as well as the effectiveness and efficiency of the courses, as well
as the programs that the entrepreneur needs at different levels of education and training
(Fayolle, 2013). Also, the biggest obstacle to the success of entrepreneurs is the lack of
confidence in their own forces. Thus, entrepreneurs need to harness their potential to
build their confidence (Maxwell, 2008). Taking into account the fact that an ordinary
man uses only 10% of his potential (Powell, 1995).
In addition, the cause of entrepreneurs' failure is due to lack of confidence in their
own forces (Maxwell, 2008). So they need mentors and coaches to support them to keep
going. They need another form of learning, by which to know themselves. Through
education, entrepreneurs actually learn how to work with their people to achieve success
(Maxwell, 2005). In this way, they learn how to have teams and train them to reach the
desired level of performance. Thus, the organization that intends to facilitate the
education of all its members and continuously transforms itself is defined by the
existence of organizational conditions that favour learning (Pedler, et al., 1989).
In this sense, for leaders to be able to develop other leaders, education and
training are needed to have a positive attitude, in terms of encouraging people to join a
leadership position (Maxwell, 2005). Kiyosaki (2011) tells us that it is essential for
entrepreneurs to consider three types of education. The first form of education refers to
the academic one, in which they learn to write, read and solve problems. Thus, the
entrepreneur's ability to keep abreast of changes in the information field is very
necessary, as opposed to what they learned yesterday.

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Just that often, academic education is not the smartest move for entrepreneurs,
because they need to learn the skills and tactics of the "real world" by taking concrete
actions. Practically it is impossible for entrepreneurs to learn something without doing
that (Kiyosaki, 2011). So people learn most 90% of what they say and do, 70% of what
they say, 50% of what they hear and see, 30% of what they see, 20% of what they hear
and 10% of what they read (Dale, 1969). So no matter how good a human being is at a
theoretical level on a particular subject, he must also know how to apply that knowledge
and influence other people as well. Otherwise, the knowledge becomes redundant.
Then, there is a need for vocational education for job security, which refers to the
knowledge of a job, from which they can earn money (Kiyosaki, 2011). It's just not
enough professional education, because it refers to the trades such as: lawyer, doctor, etc.
Which means that vocational education does not turn these people into entrepreneurs?
And last but not least, we are talking about financial education that represents a financial
culture by understanding the specific language and figures (Kiyosaki, 2018).
In other words, financial education refers to how much money entrepreneurs can
keep and how much money they manage to work for him and how many generations he
manages to make money (Kiyosaki, 2011). Basically this is the level at which the
entrepreneurs have to reach the level of education. But in order to reach this level,
Kiyosaki (2018) teaches us that entrepreneurs must carefully choose their teachers from
whom they want to learn, especially if they are not rich people. Then there is a need for a
certain attitude, which represents 80% of the financial education, if an entrepreneur uses
expressions such as "I can't afford it", "I don't care about money" etc., then he will always
be poor. And last but not least, we are talking about learning the language of money,
which entrepreneurs must master in order to become rich, words such as: "maximum
rate", "net operating income", etc.
Also, those who want to become entrepreneurs and study this phenomenon,
cannot learn this skill from a book because experiential learning is required. So another
form of education is failure. Failure is a significant evolution of entrepreneurs, because
they learn from trials and personal mistakes (Maxwell, 2005).
Also, entrepreneurs can learn from the mistakes of others to stop repeating them
too, so that they can make time to grow and develop their business. Therefore, the best
form of learning is to learn from experience. Thus, people who do not achieve
performance either did nothing meaningful in life or learned nothing (Maxwell, 2005 and
Kiyosaki, 2011).
3. METHODOLOGY
The purpose of this study is to analyze the importance of formal and informal
education in creating successful entrepreneurs. We started from the fact that the great
successful entrepreneurs of the world gave up their studies and did not continue a formal
education, and yet we all use their products and services for which they solve a number
of problems for us. In other words, entrepreneurs focus all their attention on "making
things happen" in the real world, rather than focusing on the academic approach.

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In the first part of this study we conducted a focus group with 10 IT
entrepreneurs, with 3-5 years experience in the field, in which we discussed with them
about the importance of education in creating successful entrepreneurs. Focus group
included 3 questions. In the second part we conducted a case study in which we studied
the life stories of 14 successful internationally renowned entrepreneurs, related to the
education side, and identified the main characteristics that guided them to achieve
performance. Regarding the field of intelligent specialization: information and
communications technology, space and security, within the national strategy for research,
development and innovation 2014-2020, "the field is one of the most dynamic in the
country. The industry is supported by the entrepreneurial experience accumulated in the
last decades (...) ”, IT technology is a decisive factor for the economic growth because it
provides the knowledge necessary to convert the factors of production into goods and
services, offers an efficient division of labor, improves productivity and allows the
accumulation of capital (Marcus, 2016, op. cit. Dumitrașciuc and Jitaru, 2018).
4. RESULTS
At question no.1 "What forms of education do you use in your develop?" 90% of
entrepreneurs referred to the fact that they use non-formal education. One of the
modalities of non-formal education refers to learning through practice. All entrepreneurs
said they were learning when working with the team. In this way, they have a greater
chance of success. However, the people he has in his team are very important, because
the people around him can take the entrepreneur to the heights of success or on the
contrary they can bring him down (Maxwell, 2005).
Also, all entrepreneurs said that they call on the mentors, when they need the
necessary experience of a qualified specialist and 90% of entrepreneurs said that they call
on the coaches, because IT is a constantly expanding field and they must always be
attentive to rapid changes and opportunities coming to the market. Thus, we find that
non-formal education is in fact a necessity because formal education is often too complex
to cope with such changes.
And with the avalanche of new information on the market and the opportunities
that have emerged in the life of the entrepreneurs, a very high level of stress is installed, a
number of discouragement can occur, a state of agitation can be installed, negligence of
privacy can occur, as well as other problems (Popescul, 2017), which can often cause
entrepreneurs to give up in certain situations. This is why entrepreneurs need specialized
people to help them define, explain and capitalize on their own values through both
formal and informal activities (Dromereschi, 2013).
In addition, entrepreneurship educators need to be experts in different fields and
especially in the fields of entrepreneurship and education. They need to understand both
the concepts and theories of entrepreneurship and education (Fayolle, 2013). Thus,
entrepreneurship is art and science, and the role of teachers in formal education is to build
critical theoretical knowledge about entrepreneurship and to give students the opportunity
to enrich and improve the management skills needed for an entrepreneurial career (Jack

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and Anderson, 1999). But they only offer the overall picture, which is why the practical
part of entrepreneurship is needed.
Also, the entrepreneurs have stated that they listen to audio material from
motivational speakers (100% of entrepreneurs) and go to networking events to get in
touch with them (100% of entrepreneurs). In addition, they said they watch Youtube
videos (80% of entrepreneurs) and buy courses to improve their field (60% of
entrepreneurs). At the same time, the entrepreneurs have stated that they read specialized
articles (70% of entrepreneurs) and buy books from famous authors in order to connect
the new trends (80% of entrepreneurs). Entrepreneurs said they participate in trainings
(100% of entrepreneurs), personal development workshops (90% of entrepreneurs) and
debates organized in the companies they run (100% of entrepreneurs), as well as from
outside (90% of entrepreneurs). Entrepreneurs have stated that they apply story telling
(80% of entrepreneurs) and brainstorming (100% of entrepreneurs) in their companies to
come up with new ideas and solutions to their own products and services and to solve the
company's internal problems. Regarding of formal education, they referred to the
professors from the college (60% of entrepreneurs), which in turn is useful, as they seek
to master in depth a certain aspect of their business.
It is necessary to consider the fact that each entrepreneur is unique and that each
of them has different needs in terms of their learning experience. Because there are
studies that indicate that formal education has a positive impact on the entrepreneur, more
specifically on increasing opportunities for business growth (Dunkelberg and Cooper,
1982, Gimeno et al., 1997). In addition, education is closely linked to entrepreneurship,
since entrepreneurs have a higher level of education, as opposed to those who choose to
be employed only (Robinson and Sexton, 1994).
Indeed, there are great entrepreneurs in the world who have not opted for an
academic education, and this has happened because their minds are different, because
they have felt leaders and because they have the freedom to think and they have not been
conditioned to think like an employee. Thus, education is needed in order to process the
mass of information with which we are supersaturated (Kiyosaki, 2011). It is also
necessary to adopt a critical and constructive attitude regarding the questions that
entrepreneurs raise and regarding the problems that they approach. There is a need for a
break in the silos between the thinking and the action side, between the academic and the
practical worlds, as well as between the disciplines that consider entrepreneurship
education (Fayolle, 2013).
Regarding question no. 2 "What does it mean to you, a successful entrepreneur?"
Education gives meaning to information, which means we can use that meaning to live
better (Kiyosaki, 2011). Contrary to what many people believe, success is not
synonymous with money, power, goals and achievement. 90% of entrepreneurs said that
the journey they make is more important than the results they get. In addition to the travel
side, 90% of entrepreneurs reported that the attitude they adopt towards success and the
principles behind which they live are equally important. So even if entrepreneurs go
through the same process, the results can be unique every time. Due to their experiences.
In this sense, people need to learn to fish and not to give them fish, because financial
education gives them the power to change the world (Kiyosaki, 2011).

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Another aspect that all of entrepreneurs referred to was knowing their own
purpose in life, benefiting and reaching a maximum potential. The purpose of the people
is to help their peers and to show compassion towards others (Maxwell, 2005), and in this
case we are talking about leaders. Also, all of the entrepreneurs reported that success is
achieved through perseverance and repetition. So they must also have a dose of
enthusiasm about the results they will finally get. And last but not least, entrepreneurs
need to be encouraged and supported to be successful (Keller, 2012). In addition, without
education, man cannot translate education for personal purpose because information
without education is limited (Kiyosaki, 2011).
Regarding the question no. 3 "On a scale from 1 to 10, how important is education
in creating successful entrepreneurs?" Educational experiences aim to promote flexibility,
intellectual openness, and breadth of perspective on self-directed values (Kohn and
Schooler 1983, op. Cit. Schwartz, 2007). Thus, Schwartz (2007) indicates that the same
experiences increase the openness to ideas and activities that are not routinely central to
the values of stimulation. All of entrepreneurs related that education is extremely
important, noting that there are a number of ways in which an entrepreneur can obtain an
education, and here we do not refer only to a formal academic education which usually
involves the part of exams, courses and go to college. Thus, there is a need for teachers
who are deeply rooted in the field, because educating people in entrepreneurship requires
a broad set of skills (Fayolle, 2013).
Entrepreneurs have stated that formal education is important, but it is not always
the best option for successful entrepreneurs, if we are to refer to the world's great
entrepreneurs. This is why they need other non-formal education sources. Thus,
education is positively correlated with achievement values (Schwartz, 2007). In the case
of formal education, there is a strong need for the development of knowledge, skills and
the reflexivity of teachers in the field of entrepreneurship (Fayolle, 2013). In addition,
financial education for entrepreneurs is particularly important, considering that we are in
the Information Age, and job security and retirement are no longer guaranteed (Kiyosaki,
2014).
5. ANALYSIS OF THE LIFE STORIES OF SUCCESSFUL ENTREPRENEURS
We conducted a case study where we studied the life stories of 14 successful
entrepreneurs related to the education side and identified the main characteristics that
guided them to achieve performance. We analyzed entrepreneurs such as: Thomas
Edison, Steve Jobs, Nikola Tesla, Walt Disney, Mark Zuckerberg, Michael Faraday,
Henry Ford, William Shakespeare, Mark Twain, Bill Gates, Abraham Lincoln, Andrew
Carnegie, Richard Branson and Michael Dell. Following the analysis we found the
following: they did not benefit much from formal education either because they were
poor or because they did not have enough time for study and entrepreneurship, or because
they had no interest in it.
These entrepreneurs had many failures to succeed, but each failure for them was a
lesson, so they always continued to be self-taught and continued to show their curiosity in
the field they liked to study. So, learning from books or from the reality of the market is a

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pretty important feature that defines the success of an entrepreneur. And non-formal
education takes place regardless of whether the results obtained by the entrepreneur are
negative or positive (Ilie, 2019).
Also, passion is the main engine that guided them in their lives and the fact that
they knew exactly what they wanted from their lives. In addition, the passion for lifelong
learning is essential for entrepreneurs (Kiyosaki, 2018). Thus, these entrepreneurs had a
strong motivation to go ahead regardless of the results obtained, they were persevering,
they were ambitious and loyal to the business idea, they always maintained their integrity
and they trusted themselves. These issues have led entrepreneurs to become world
leaders.
6. CONCLUSIONS
The results of this study show that non-formal education is much easier for
entrepreneurs, as opposed to formal education. Because through non-formal education,
entrepreneurs learn exactly what interests them in a much shorter time, than if they go to
university courses for example. Also, the results of this research show us that
entrepreneurs use a wide range of knowledge, methods, resources and information from
non-formal education, which creates diversity and gives entrepreneurs more perspectives
to see things. We can see that time is a valuable resource for entrepreneurs, and time
means money, which is why entrepreneurs need to be careful how they value this time so
that they are not at their expense.
If we were to define in one word what defines the entrepreneur is discipline. We
have seen in this study that discipline actually helps entrepreneurs make much easier
decisions, helps them develop self-confidence and helps them develop their self-control
capacity. They also have great concentration power, because we have seen that they do
not deviate from what they set out to do.
In addition, we can observe the consistency of their efforts by the fact that they
are persevering and are always looking to learn new things. This can be attributed to the
fact that the IT field is constantly changing and must be aware of the new trends and must
face the external pressures. Because in this area the fight between the most powerful
leaders in the market is taking place.
Also in this study, we saw that in addition to the fact that entrepreneurs must be
self-taught, because the learning process never ends. They must be patient, constantly
measure their progress, periodically evaluate what worked and what did not work in their
discovery process, if a certain strategy did not work, they must change their horizons and
look for new solutions to problems and constantly work for the results that entrepreneurs
want to achieve because there are never any shortcuts or fireworks to reach the
performance. In addition, we noted that entrepreneurs would not have reached such a
process of awareness if they had not resorted to the methods of formal and non-formal
education, by which they have outlined a set of values that come from the essence of
people's identity and from faiths. So, unconsciously, values come from education, from
teachers, from new people that they admire, friends, parents, colleagues and others with
whom they intersect and that have a certain impact on them.

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In real life, we can see examples of people who have finished college and have
only become employees, so their only way is to make money and not to create more
value for others around them as make entrepreneurs successful. Especially since today we
need entrepreneurs who focus more on "doing" things that happen, who leave the comfort
zone and who love the risk as opposed to an employee who loves safety and comfort, and
life. it is linear.
As a result, entrepreneurs learn much better from their own experiences, as well
as from other people who have been involved in the business, who have tested different
experiences on their own skin, so that they can offer personal advice and prepare them for
what follows, such as coaching and mentoring, which is a non-formal learning model.
We recommend that entrepreneurs resort to life coaching sessions because when
entrepreneurs turn to life coaching sessions, they improve their relationships with others,
help entrepreneurs set their SMART goals, and help entrepreneurs increase their
performance (Popescul, 2017).
As we have shown in this study, academic education helps entrepreneurs to
deepen a certain area as part of their business. In terms of formal education, raising
awareness of entrepreneurship among students can be achieved by analyzing case studies
and by bringing entrepreneurs to the classroom (Jack and Anderson, 1999). We conclude
by saying that education, regardless of its form, gives entrepreneurs the opportunity to
open up intellectually. At the same time, education gives entrepreneurs the opportunity to
become flexible in what they do.
The results of this study can benefit the entrepreneurship education providers
(teachers, mentors, and coaches), the future entrepreneurs, as well as the entrepreneurs.
This study provides a basis for understanding the importance of formal and informal
education in creating successful entrepreneurs. The study will be useful for future
entrepreneurs, experienced entrepreneurs, researchers, and for facilitators in education
such as: teachers, mentors, coaches, etc.
Entrepreneurship education providers could put in place a series of strategies and
programs to encourage both future entrepreneurs to continue to pursue this path of
entrepreneurship, as well as experienced entrepreneurs to overcome the obstacles they
face throughout this process.
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