Emprendiendo Ando: Do I Need a Degree for that?

When it comes to education and entrepreneurship in Mexico, credentials do not always equate to success. While formal education can provide valuable skills and knowledge, many successful entrepreneurs in Mexico have thrived without advanced degrees.

As of recent data, about 24% of Mexicans aged 25-64 have completed some form of higher education (university or vocational training) according to OECD standards. The number is lower compared to other OECD countries, reflecting various socio-economic barriers like access to education and high dropout rates.

What kind of business can one do without a degree in Mexico?

In terms of entrepreneurship, roughly 33% of Mexican entrepreneurs hold a post-secondary education degree. Interestingly, the types of businesses these entrepreneurs run often differ from those without formal schooling. Entrepreneurs with higher education are more likely to venture into industries that require specialized knowledge, such as technology, finance, consulting, and manufacturing. They often focus on innovation-driven businesses, which can lead to larger-scale operations and international collaborations.

In contrast, entrepreneurs without formal education tend to dominate micro and small enterprises in sectors like retail, food services, and local craftsmanship. These businesses are typically rooted in practical, hands-on knowledge and family traditions, showing that success can come from various sources of expertise.

The landscape shows that while education can be an advantage in navigating complex industries, entrepreneurial success in Mexico is achievable through multiple paths, often driven by creativity, adaptability, and community support rather than formal credentials alone.

There are limited official statistics in Mexico specifically tracking entrepreneurs without formal education who transition from micro or small enterprises to large-scale businesses or other industries. However, anecdotal evidence and case studies suggest that such transitions do happen, especially in sectors that rely on hands-on experience, family-driven businesses, or trade expertise.

Several reports and studies do point out factors that help facilitate this transition:

1. Access to Financing and Microcredit: Programs targeting informal and small businesses have been shown to help entrepreneurs with little formal education expand their operations. Microcredit, government-backed loans, and mentorship programs provide the support these entrepreneurs need to scale up.
2. Digitalization and Technology Adoption: Entrepreneurs who integrate technology into their businesses, regardless of formal education, often see greater opportunities for scaling up. COVID-19 accelerated the digital transformation for small businesses in Mexico, helping many informal businesses access new markets, as mentioned in OECD reports.
3. Skills Transfer: Entrepreneurs without formal education who grow from micro to larger enterprises often rely on skills passed down through generations. This is particularly common in sectors like agriculture, retail, and food services.

One study by the Global Entrepreneurship Monitor (GEM) found that 29% of entrepreneurs in Mexico with little or no formal education run businesses that have been growing steadily for several years, often transitioning to medium-scale operations, particularly in the retail and food industries.

INEGI and OECD studies show that most entrepreneurs in micro-businesses, representing 97.3% of businesses in Mexico, focus on local markets and often lack access to formal financing or educational backgrounds in management, which can limit their ability to scale. Still, there are anecdotal success stories where entrepreneurs transition into larger businesses, particularly in sectors like retail and manufacturing, through innovative approaches and leveraging informal networks.

In the dynamic world of entrepreneurship, education isn't a one-size-fits-all solution, but it can be a game changer. Whether entrepreneurs are leveraging advanced degrees to break into high-tech industries or using street smarts to build thriving local businesses, one truth remains: success is measured by innovation, adaptability, and the ability to learn from every experience, formal or informal. The entrepreneurial journey in Mexico shows us that while education opens doors, grit and resilience are often the keys to staying in the game. In the end, it's not just about credentials; it's about how you use what you know to build something great.