Both are very important, but being street-smart indicates that the person is adaptable and can handle real-world situations rather than just artificial scenarios.
Education and on-the-job training can give the person the book-learning and tools needed, as long as he or she has the desire and character to work hard.
I would much rather hire a "hungry" and passionate person with real-world experience than an academic with poor common sense or inadequate people skills. You can always buy a book for a street-smart person
Or you can find yourself an MBA with street-smarts. Since the two aren't mutually exclusive.
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