by Robert J. Zimmer
March 1, 2013
An increasingly familiar and seductive story has been circulating about young people who, drawing inspiration from billionaire entrepreneurs and computer giants, consider dropping out of college a fast track to business success.
Names like Jobs, Gates, Dell, and others lend star power to the myth of the wildly successful college dropout. One recent New York Times homage to the phenomenon compared dropping out to "lighting out for the territories to strike gold," with one young executive describing it as "almost a badge of honor" among startup entrepreneurs. Like any myth, this story has a kernel of truth: There are exceptional individuals whose hard work, determination, and intelligence make up for the lack of a college degree. If they could do it, one might think, why can't everybody?
Such a question ignores the outlier status of these exceptional drop-out entrepreneurs and innovators.
Those who are able to achieve such success often rely on a set of skills already developed before they get to college. They know how to educate themselves, get a bank loan, and manage their time and their money. They may benefit from a network of family, friends and acquaintances who open doors and provide a safety net.
But what happens to young people without access to these important resources? For them, skipping college to pursue business success is like investing their savings in lottery tickets in the hopes they will be a multimillion-dollar winner, or failing to pursue an education because they expect to be an NBA superstar. The reality is that the next college dropout will not be LeBron James, James Cameron, or Mark Zuckerberg. He will likely belong to the millions of college drop-outs you don't hear the press singing about. These are the 34 million Americans over 25 with some college credits but no diploma. Nearly as large as the state of California, this group is 71 percent more likely to be unemployed and four times more likely to default on student loans. Far from being millionaires, they earn 32 percent less than college graduates, on average.