Dropping Back In

A few college students have special extracurricular activities: running their own companies. They're former dropouts dropping back in.

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Conventional wisdom holds that a college education is the key to success. But for entrepreneurs who dropped out to start their own companies, what is the point of dropping back in, especially if you're already running a successful business? After all, college dropouts Bill Gates (Harvard), Steve Jobs (Reed College), and Michael Dell (University of Texas) did just fine without a bachelor's degree.

"Being an entrepreneur is part rational and part emotional," says Andrew Zacharakis, professor of entrepreneurship at Babson College in Wellesley, Mass. "Successful entrepreneurs are passionate about what they do, and sometimes this means leaving sooner to get on with it."

For Michael Brown, "it" was starting mortgage brokerage firm Wells Street Financial in Chicago. Just two semesters shy of a bachelor's degree, Brown dropped out of the University of Michigan to run his business, which employs three people and handles about $60 million worth of financing annually. His decision to return to college was based on both professional and personal reasons. First, he wanted the credibility that a college degree confers. "In the long term, I want to raise money from pension funds," says Brown, 25. "I have a fiduciary responsibility, and I think it would be tough for them to see that in someone without a college degree." And then there was the promise he made to his mother to graduate, something his father never did.

Deciding to return is easier said than done. For a year, Brown took three night courses in Chicago while running his business during the day. Eventually, he moved back to his parents' house in suburban Detroit and returned to his alma mater full-time to major in history with an emphasis in business. "I was a dinosaur in finance class, but the kids looked up to me," he says. "I knew tons of stuff based on real-world experience. We got A's on all of our group projects." Outside the classroom, Brown focused on existing accounts instead of courting new ones, which cost him lucrative opportunities. He managed by delegating part of the workload to his one employee at the time and relying on technology -- checking in with clients between classes or via BlackBerry during a 45-minute commute to campus.

"Successful entrepreneurs are passionate. Sometimes this means leaving sooner to get on with it."

Whereas Brown finally got his degree within four months, Alex Fortunati, CEO of outsourcing firm Support Services America in Norwalk, Calif., expects to frame his in five years. The 45-year-old dropped out of Catholic University in Buenos Aires during his freshman year because, true to the entrepreneurial mindset, he thought he could learn business on his own. He hasn't done a bad job: The 120-employee SSA earned $10 million in revenue and made the Inc. 500 at No. 143 last year. Still, "I want a larger business," he says. "I want to show reliability and that I have an education to creditors, bankers, and potentially large customers. I realized that I needed to upgrade my education."

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