Fear factor: what's really holding you back from starting your own business? These 31 tips will help you face your fears and finally get the guts to become
Author: Entrepreneur

IN THE third season of The Apprentice, contestants were divided into two teams, high school vs. college graduates. In a real-life spin, we asked four entrepreneurs with various levels of education, Are street smarts or book smarts more important in business?

Armed with the gifts of gab and persuasion, Steven Arroyo spent time around restaurateur clients as an espresso bean salesman and became convinced he had the street smarts to excel at the restaurant biz himself. He started what is now Cobras & Matadors in Los Angeles 10 years ago. "I knew that my style was as good as anybody's out there," says Arroyo, 36, who never attended college. "When you have a degree, you pay someone tuition to tell you what you can and cannot achieve. No one has ever told me what my capabilities or limitations are." Arroyo now has four restaurants and projects 2005 sales of $7 million. "The street will teach honesty, integrity, humility and how to BS," he says. "Lack of knowledge is sometimes my best weapon."

A high-school dropout at 16, Barry Liben, now 52, co-owns New York City travel agency Tzell Travel Group. Liben became friendly with the owners of Tzell, which was next door to the summer camp he ran, and an inheritance from his uncle allowed him to buy part of it at 24. Taking full control six months later (a silent partner still remains), Liben credits his ability to deal with people, something an MBA can't guarantee, for growing a business that boasts 2005 sales projections of $550 million. While some businesses benefit from book smarts, Liben says a people-oriented business needs street smarts: "Treating people the proper way, with respect--you won't learn that in any class or book."