Want to know the best degrees to own a small business? Your craft skills alone won’t cut it for running a successful business. A bakery owner needs more than just baking skills to thrive, no matter how good those pastries might be.

Small business owners are part of a huge entrepreneurial world. The U.S. Small Business Administration reports that America has 34.8 million small businesses in 2024. These businesses make up 99.9 percent of all U.S. businesses. Many of these businesses fail because they run out of money. The right education is a vital part of success. A degree gives you the knowledge you need about management, finance, and strategy. This helps you make smart decisions and avoid getting into costly mistakes.

Look at successful business leaders like Elon Musk and Diane von Furstenberg – they studied economics in college. You’ll find many paths that lead to entrepreneurial success. This piece breaks down seven degrees that work for small business owners in 2025. You’ll learn about practical ways to invest in your education.

1. Business Administration

A Business Administration degree is the substance of successful entrepreneurship. Many people start businesses because they’re passionate, but they don’t have the business know-how to last. The Small Business Administration reports about 50% of small businesses fail within their first five years. This happens because of poor management rather than product issues.

Key skills from Business Administration

A Business Administration degree gives you tools you need to succeed as an entrepreneur. You’ll learn to lead teams, share your vision, and make tough decisions under pressure. The numbers back this up – companies with agile leadership are 70% more likely to outperform their competitors when things change.

The degree builds your money sense too. You’ll learn to read financial statements, handle budgets, and make smart choices about your resources. Strategic planning becomes second nature, helping you spot opportunities while running your business smoothly.

You’ll also gain these valuable skills:

Problem-solving and analytical thinking
Delegation and team management
Clear and effective communication
Market research and customer analysis
Digital literacy and technological adaptability

TalentSmart’s research shows that 90% of top performers have high emotional intelligence, a skill you’ll develop through Business Administration programs.

How Business Administration helps small business owners

Small business owners find that Business Administration knowledge gives them a complete foundation to tackle multiple challenges at once. You get structured knowledge of business basics—from accounting to marketing—without the steep learning curve that self-taught entrepreneurs face.

The degree helps you make better decisions. Instead of just going with your gut, you’ll tackle challenges using data and proven frameworks. Harvard Business Review found that 70% of employees work better when leaders share a clear vision, something you’ll learn to do well.

Your education lets you create standard processes that save time and cut down on mistakes. You won’t need to start from scratch with each new challenge. Instead, you’ll use tested methods to run your business better.

Best of all, Business Administration training helps you avoid mistakes that often kill startups. You’ll create efficient business structures, automate routine tasks, and build systems that keep your company on track.

Real-life applications of Business Admin

Business Administration skills work in every phase of owning a business. Starting up? You’ll get a full picture of the market and find real customer needs before spending big money. Then you’ll create solid business plans and financial projections that attract investors and guide your choices.

Once you’re running, your Business Administration background helps set up clear organizational structures. Everyone knows their role and responsibilities. This makes decisions faster, builds accountability, and improves company-wide communication.

Money matters become clearer too. Your training helps you keep accurate records—vital for following rules and making smart choices. You’ll understand financial statements, manage cash flow, and budget effectively.

The degree really shines when managing teams. You’ll build strong teams, delegate tasks well, and create an environment where people do their best work. Studies show that poor communication causes 86% of workplace failures, but your training prevents this common issue.

As your business grows, you’ll use strategic planning to find new opportunities and manage risks. You won’t chase every opportunity. Instead, you’ll make smart choices based on data and market insights.

Business Administration isn’t just theory—it gives you real tools for business success. While a degree doesn’t guarantee success, this foundation boosts your chances of beating the odds and building a thriving business.

2. Accounting

Financial skills are the foundations of business success. That’s why an Accounting degree gives small business owners a significant edge. Accounting stands out from other business fields by offering concrete tools that track, measure, and analyze your company’s financial health. Research shows that financial mismanagement leads to 82% of business failures. This fact shows why accounting knowledge helps businesses survive longer.

Key skills from Accounting

An Accounting degree gives you specialized financial skills you need to own a business. You’ll learn how to read and prepare five key financial documents: income statements, balance sheets, profit and loss statements, cash flow statements, and bank reconciliations. These documents work together to show your business’s complete financial picture.

This knowledge helps you master both cash-basis and accrual accounting methods. Cash-basis accounting tracks money when it moves between accounts. Accrual accounting records transactions when they happen, whatever the payment timing. Cash-basis might seem easier, but accrual accounting shows your company’s financial health more accurately.

Other valuable skills include:

Budget development and expense tracking
Financial analysis and forecasting
Tax planning and compliance
Risk assessment and management
Business valuation techniques

You’ll also learn about Generally Accepted Accounting Principles (GAAP), the standardized accounting practices that are 50 years old, created by the Financial Accounting Standards Board. These principles ensure your financial reports meet professional standards – a great way to get trust as your business grows.

How Accounting helps small business owners

Small business owners find that accounting knowledge turns financial management from a scary task into a powerful tool. We tracked every dollar moving through the business systematically. Studies show entrepreneurs spend about 21 hours per week on manual bookkeeping tasks without proper accounting systems.

Accounting expertise lets you make decisions based on data. Numbers, not hunches, help you assess opportunities, spot problems early, and use resources wisely. This approach helps manage cash flow better – crucial since poor cash flow causes most business failures, even when profits look good on paper.

Accounting knowledge helps set up internal controls that protect your business assets and stop fraud. These safety measures become vital as your business grows and more people handle your money.

Technology-wise, accounting graduates know how to use modern financial software effectively. Cloud-based accounting platforms save businesses up to 15 hours monthly through automation. These tools provide immediate insights into your business’s performance with dashboards that update as transactions happen.

Real-life applications of Accounting

Accounting knowledge changes how you run your business daily. During startup, these principles help create realistic financial projections, set pricing strategies, and get funding through well-laid-out business plans.

Once you’re running, your accounting background helps set up the quickest way to handle bookkeeping—using software like QuickBooks, Xero, or FreshBooks, or creating structured manual processes. You’ll handle accounts payable and receivable confidently and ensure vendors and customers pay on time.

Strategically, accounting expertise helps you analyze costs and benefits. This process weighs the pros and cons of business decisions by comparing potential benefits against costs over time. A restaurant owner might ask if $5,000 in extra yearly sales justifies spending $3,000 on outdoor seating permits and equipment.

Tax preparation becomes easier with accounting knowledge. You’ll know which expenses you can deduct, how to keep proper records, and ways to reduce taxes legally. As your business grows, you’ll make smarter choices about hiring financial help—whether it’s bookkeepers for daily tasks or CPAs for complex tax planning.

The future of accounting goes beyond just numbers. Modern accountants now work as strategic advisors and use AI tools and data analytics to predict trends. By 2026, about 90% of finance teams will use at least one AI solution. This shows why learning about technology is now crucial in accounting education.

3. Finance

A finance degree enables small business owners to manage money beyond simple bookkeeping. Finance education gives entrepreneurs the tools they need to scale their ventures with confidence. Studies show that poor cash flow management causes most business failures, even when companies look profitable on paper. Small business owners need to understand financial principles to launch and sustain successful businesses.

Key skills from Finance

Finance programs build a complete skill set in strategic money management. Students become proficient in financial analysis and learn to assess market conditions, identify risks, and spot potential opportunities. This analytical foundation helps them make data-driven decisions instead of relying on gut feelings.

Students master investment evaluation skills that become valuable when they assess business purchases or expansion opportunities. They learn to use quantitative analysis techniques to determine if investments will generate enough returns.

Other valuable skills include:

Capital budgeting and resource allocation
Risk assessment and mitigation strategies
Economic and statistical analysis
Corporate finance and funding strategies
Cash flow forecasting and management

Students develop expertise in business strategy formulation. Most undergraduate finance programs teach students about identifying target markets, analyzing industry attractiveness, and determining the best market entry approaches. To name just one example, students learn to assess whether their startup should become a low-cost leader or separate products to justify premium pricing.

How Finance helps small business owners

Finance knowledge changes money management from a stressful task into a strategic advantage for entrepreneurs. Students learn to create realistic budgets that guide business decisions and expansion plans. A well-laid-out budget provides a complete view of the company’s financial health and leads to confident decision-making.

Finance education helps entrepreneurs secure funding. They can forecast resource needs accurately and establish structured financial plans to attract investors or secure loans. This knowledge becomes particularly valuable during startup phases or growth opportunities.

Finance knowledge helps maintain positive cash flow—the core of any business. Proper cash management lets owners track money coming in and going out. They can spot potential shortfalls before these become emergencies. In fact, steady positive cash flow shows a healthy company, while ongoing cash problems might signal the need for operational changes.

Finance education prepares business owners for economic uncertainty. This preparation becomes significant during potential market instability, like election years. Understanding how policy changes might affect regulations, taxation, or consumer behavior helps develop contingency plans that protect the business while capitalizing on new opportunities.

Real-life application of Finance

Finance knowledge improves every aspect of business ownership. During startup, owners use financial principles to assess fixed and variable costs, establish contingency funds, and set realistic revenue projections. They develop multiple scenarios—best-case, worst-case, and most-likely outcomes—instead of creating optimistic forecasts.

Operating businesses benefit from effective cash management strategies. Owners might label expenses as “essential” versus “discretionary,” which allows quick budget adjustments when market conditions change. This flexibility helps businesses adapt and maintain financial stability during economic fluctuations.

Finance education helps conduct thorough cost-benefit analyzes of potential business investments. A restaurant owner might calculate if projected additional annual sales of $5,000 justify spending $3,000 on permitting and equipment for outdoor seating. This analytical approach arranges resource allocation with potential returns.

Business growth requires protective structures that shield personal assets. Forming appropriate legal entities like S corporations or LLCs creates separation between business and personal finances while optimizing tax treatment. Proper debt management strategies help use financing opportunities without stretching resources too thin.

Finance education provides tools for long-term planning, including personal considerations. Business owners can establish work-life boundaries and implement tax-advantaged retirement savings plans like SEP-IRAs. Their financial knowledge helps secure both business sustainability and personal well-being. This complete approach ensures their business trip supports rather than sacrifices their quality of life.

4. Marketing

Today’s customers drive the marketplace. A Marketing degree gives small business owners tools to attract and keep clients. Marketing builds connections between your business and potential customers, unlike purely financial disciplines. Studies show marketing helps entrepreneurs in emerging markets grow sales by 52%. They also see profits rise by 36% and workforce expand by 24%. This skill becomes more important as 66% of customers want companies to understand their specific needs.

Key skills from Marketing

Marketing programs develop skills that directly affect business success. You’ll gain strong communication skills—both written and verbal—to express your business value to different audiences. These skills help you write compelling product descriptions, email campaigns, and social media content.

Data analysis is another significant marketing skill. You’ll learn to extract insights from website traffic, user behavior, and campaign metrics. This knowledge base helps you make data-driven decisions that boost marketing ROI and customer engagement.

Additional valuable skills include:

Digital marketing fundamentals, including search engine optimization and online advertising
Market research techniques to identify customer priorities
Social media strategy and content development
Email marketing campaign creation and optimization
Budget management for marketing initiatives

Marketing education teaches you about consumer behavior—the psychology behind buying decisions. This knowledge is great for customer-facing roles where persuading potential clients matters most.

How Marketing helps small business owners

Marketing knowledge turns customer acquisition from guesswork into a clear process. It provides a framework to separate your business from competitors. Most businesses fail to attract customers because they look too similar without effective marketing. Marketing answers a key question: “Why should customers choose you over competitors?”

Marketing expertise creates tailored customer experiences. Companies that excel in personalization beat their revenue goals. Their customers buy more often and stay loyal longer. This ability becomes more valuable as 80% of adults want retailers to customize their shopping experience.

Marketing benefits go beyond finding new customers. A marketing background helps you create detailed strategic plans that link short-term goals with long-term results. These plans make sure all promotional efforts match business objectives while using resources wisely.

Marketing knowledge helps you adapt strategies quickly during economic uncertainty from market changes or global events. You can develop backup plans that protect your business by understanding how policy changes might affect consumer behavior.

Real-world applications of Marketing

Marketing knowledge makes daily business operations better. You’ll use marketing principles to create a detailed plan that outlines your target audience, competitive advantages, and promotional strategies when starting up. You’ll find specific demographics that match your offerings instead of chasing every potential customer.

Your marketing background helps you run effective promotional tactics once you’re operating. A bakery owner with marketing training might showcase products in local supermarkets to establish quality reputation. A beauty salon owner could add premium services like specialized hair extensions to stand out from shops that offer only simple options.

Marketing education prepares you for new online trends. By 2025, AI will change marketing from past result reporting to future outcome prediction. It will forecast demand, optimize budgets, and speed up decisions from days to minutes. This adaptation matters more as consumers use social platforms that naturally combine discovery and purchasing.

Marketing is more than promotion—it’s a complete system for business growth. Your marketing degree gives you tools to develop detailed marketing plans, find ideal customers, and create messages that appeal to your target audience.

5. Computer Science

Technology mastery has become vital for entrepreneurs in 2025. Computer Science stands out as one of the best degrees for small business owners. Traditional business education focuses on management theories, but computer science gives you practical technical skills that boost operational efficiency. Recent studies show 54% of small businesses will spend more on technology. Understanding the digital world is no longer optional for anyone asking what degree do you need to own a business in our tech-driven economy.

Key skills from Computer Science

Computer Science programs build technical capabilities that create immediate business advantages. We learned coding in languages like HTML—a simple yet powerful tool for entrepreneurs. This fundamental language helps you build and maintain websites. You can save about 25% on costs that would go to external developers.

The program teaches data analysis using Excel, Python, and SQL. These tools help you process customer information, track inventory, and create business insights without expensive third-party services.

Other valuable technical skills include:

WordPress proficiency for website management and content creation
Cybersecurity knowledge to protect sensitive business and customer data
Cloud computing familiarity for managing IT infrastructure efficiently
SEO and internet marketing techniques to increase online visibility

Computer science education teaches problem-solving methods that work for all business challenges. This structured approach becomes a great way to get through your business experience.

How Computer Science helps small business owners

Technical knowledge helps turn daily operations from labor-intensive to streamlined. It lets you automate processes by replacing manual tasks with digital systems that save time and reduce errors. Small business owners spend about 21 hours each week on manual bookkeeping tasks without proper systems.

Technical expertise gives you confidence in making technology decisions. You won’t need to depend completely on consultants or vendors. You can assess options yourself and make sure technology investments line up with business needs. This skill becomes more valuable as AI, blockchain, and 5G continue to revolutionize business operations.

Technical knowledge improves communication with specialized professionals. Understanding technical concepts helps you explain business requirements better to developers, IT consultants, and digital marketers. Clear communication leads to better project outcomes and lower costs from miscommunication.

Computer science skills help you adapt quickly during economic changes. You can implement new technologies fast to meet changing market conditions or customer priorities.

Ground applications of Computer Science

Technical knowledge improves every part of business ownership. Web development skills help you create professional websites that build credibility and attract customers. You can build and maintain your online presence yourself instead of spending thousands on external developers.

Your computer science background supports evidence-based decision-making. To name just one example, you might build customer relationship management systems that track priorities and buying patterns. This information guides inventory, marketing, and product development decisions.

Technical skills let you automate processes through tools like Quick Base. This no-code platform helps you build custom business applications without advanced programming knowledge. One entrepreneur saved over $4,000 by creating an application that found billing discrepancies. This shows how technical skills directly affect profitability.

Computer science knowledge helps you use emerging technologies that small businesses might find hard to access. From AI tools that boost customer service to cloud solutions that cut infrastructure costs, staying current with technology gives your business advantages that only large corporations used to have.

6. Economics

Economics ranks among the best degrees for small business owners who want to build lasting ventures. It goes nowhere near just studying GDP figures. The subject gives you a framework to understand markets, hidden costs, and what customers value. Business owners can use this market-focused viewpoint to guide both day-to-day decisions and larger economic trends.

Key skills from Economics

An Economics degree sharpens your analytical skills that directly improve how you run your business. We learned economic analysis that teaches you to spot opportunity costs, weigh trade-offs, and allocate resources wisely. These analytical foundations help you make smart choices about using your limited resources.

Simple economics training builds several significant skills:

Supply and demand analysis to develop pricing strategies
Cost management techniques to optimize resources
Revenue forecasting methodology
Investment assessment frameworks
Market structure analysis

Economics education shows you how to spot information gaps – when one party knows more than others. Traditional textbooks see these gaps as market failures. Smart entrepreneurs see them as chances to succeed.

How Economics helps small business owners

Economic knowledge can revolutionize your business strategy. It gives you a clear way to make decisions. Your economics training helps you weigh risks and rewards before jumping into opportunities. You’ll know whether to accept, reduce, or avoid those risks.

Economics expertise lets you see how policy changes affect your business. Small business owners often back policies that can hurt their customers, staff, and market without realizing it. When you understand economics, you can spot which rules drive up costs and which create better business conditions.

All the same, economics might be most valuable because it focuses on human behavior. Since entrepreneurship is about creating products or services that help others, learning about human behavior, incentives, and resource use becomes vital.

Ground applications of Economics

Economic knowledge makes daily operations better. When starting up, you’ll use economic principles to assess market chances. You’ll avoid being too optimistic by using realistic assessment tools.

Once you’re running, your economics background helps set smart pricing strategies based on consumer surplus – the gap between what customers will pay versus your actual price. This knowledge lets you adjust prices to maximize revenue while keeping customers happy.

Your economic training helps you focus on your business “microclimate” instead of worrying too much about bigger economic indicators. This targeted approach keeps you focused on things you can control while staying aware of how bigger economic changes might affect your market.

During uncertain times – whether from inflation, tariffs, or policy changes – economics knowledge helps you adjust strategies and find new chances. This flexibility is especially valuable when markets change, letting your business thrive in shifting conditions.

7. Human Resources and Organizational Leadership

Small business owners need people-management skills more than ever, and that’s why Human Resources and Organizational Leadership rank among the best degrees for small business owners who want lasting success. Your business’s growth depends on how well you manage your employees – a responsibility that shapes both performance and culture.

Key skills from Human Resources and Organizational Leadership

This degree helps you develop leadership skills that give your business an edge. We learned about emotional intelligence – knowing how to understand and respond to others’ emotions. Leaders who excel at emotional intelligence build better company cultures, make employees happier, and boost team participation.

You’ll also master these skills:

Communication skills that make leadership clear
Ways to solve conflicts
Process management and organization
Team building and finding great talent
Skills to manage change

These abilities come with tech-savvy knowledge – which 68% of employers rank as their third most important skill for leaders.

How Human Resources and Organizational Leadership helps small business owners

HR knowledge turns talent management from a headache into your secret weapon. The numbers speak for themselves – companies with solid recruiting strategies grow 3.5 times faster than those without.

Good HR practices let you build and keep a positive workplace culture. Companies where employees actively participate see 23% more profit. Your HR expertise will keep you on the right side of labor laws, protecting you from legal troubles that often trip up small businesses.

Ground applications of Human Resources and Organizational Leadership

HR knowledge makes your business run smoother as it grows. You’ll start by creating clear onboarding steps that make new employees feel welcome and informed. This approach keeps new hires engaged and reduces how many leave early.

Your HR background lets you set up systems that track how well employees perform. You can set clear goals, give quick feedback, and reward good work to keep spirits high. Clear communication makes employees 12 times more satisfied with their jobs, which helps keep your best people around.

Remote work needs strong HR leadership skills. Since 80% of workers put flexible hours at the top of their wish list, offering flexible work options helps you attract the best talent.

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The right educational path can shape your success as a small business owner. This piece explores seven degrees that work for entrepreneurs in 2025. Each degree brings its own benefits to the table. Business Administration builds strong management foundations. An Accounting degree gives you vital financial skills. Finance degrees help you master money management skills to maintain positive cash flow and make smart investments.

Marketing knowledge creates meaningful customer connections and helps your business stand out in competitive markets. Computer Science degrees are no longer optional. They provide technical skills that improve operations and cut down external vendor costs. Economics training leads to better decisions through market and consumer behavior insights. HR and Organizational Leadership prepare you to handle team management challenges as your business grows.

No degree guarantees success in business, but proper education improves your chances of success. Many small businesses fail because owners lack basic knowledge in key areas. Good education helps avoid common mistakes that can sink promising ventures.

The best degree choice depends on your business goals, strengths, and market conditions. Smart entrepreneurs blend formal education with hands-on experience. This combination creates a strong base for better decisions. Note that education is just the starting point, not the end goal. Business success needs ongoing learning as markets change and new challenges pop up.

The right knowledge prepares you to join millions of small business owners. These entrepreneurs are the foundation of the American economy. They don’t just survive – they thrive in today’s complex business world.

7 Best Degrees for Small Business Owners