Startup Vs. Grad School

Paul Graham recently gave a lecture at MIT, encouraging undergrad students to create their own startups after they graduate.
Reading this article made me think of the reasons why people pursue masters education:
1. More knowledge
2. Credentials that will help them get a good job and be able to progress in their careers
3. Opportunity to do research

For most people going to grad school is a step to secure their career with more credentials and knowledge. Offcourse people who want to pursue research do not come into this category. They have to go to grad school followed by a PhD.

If you had two options, either go to grad school or create your own startup, which of these do you think would help you more: I think creating your owb startup would:
1. You will defenitely gain a lot of technical (real world not just college projects) knowledge in the process of creating your own startup.
2. This knowlede will be significantly in-depth, because you will have to solve involved technical problems such as concurrency, scaling up, integration, etc
3. You will get ample opportunity to do research.
4. Creating a startup will probably cost you as much as a graduate degree. However there is a chance that after two years you might actually create good financial value in your startup.
5. Finally let's talk about credentials. Having a startup does not give you a degree, but the fact that you have started one, says you can take risks, can get things done, can understand customer requirments, and you have the ability to work hard.

These are the attributes that hiring managers look for in candidates. Not just degrees. So even if you were to look for a job after attempting a startup for 2 years, you probably would stand a better chance at getting a good employment opportunity than someone with just a grad degree. You will also have a concrete portfolio to show to prospective employers. There is also a chance that your startup may succeed and you will not need to seek employment elsewhere. This is what you should work towards.

If you are still thinking about the learning aspect, remember that college is not the only option. Informal, networked, and self directed learning are actually very effective options.

Check out:
1. Networked reciprocal learning
2. Personal learning environment

You can read Paul Graham's excellent article here.

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Parag