A Practice Enterprise (also known as a practice firm or virtual enterprise) is a virtual company that runs like a real business silhouetting a real firm's business procedures, products and services. A practice enterprise resembles a real company in its form, organization and function. Each Practice Enterprise trades with other Practice Enterprises, following commercial business procedures in the Practice Enterprise worldwide economic environment.
A Practice Enterprise is a simulated company set up by trainees, with the assistance of a facilitator, to undertake commercial activities. It provides trainees with hands-on business skills and enhances their knowledge and experience of business practices.
Working in a Practice Enterprise provides trainees with the necessary skills and knowledge to become an entrepreneur or find employment after they finish their work in a Practice Enterprise. Practice Enterprises foster entrepreneurial attitudes and skills among young people (e.g. secondary school students, college students) and among adults (e.g. employees, unemployed people, women returning to work, adults with disabilities, university students, etc.)
Although there is no actual transfer of goods or money, other transactions take place: orders are made, invoices issued and financial records maintained - including creditors, debtors, stock holdings and so on.
A Practice Enterprise is very often assisted by at least one real Mentor Company whose products and services the practice firm silhouettes. Mentor Companies supply information on technical and management issues.
A Practice Enterprise researches the market, advertises, buys raw materials, transports, stocks, plans, manufactures simulated goods, sells simulated products or services, and pays wages, taxes, benefits, etc.
Practice Enterprises offer practical training in:
A couple of the objectives of the Practice Enterprise methodology are to train the ability to take initiative, self-reliance and also to deliver knowledge on how to establish and run a company. Practice Enterprise trainees learn how to work in a team, to take on responsibility, to develop self-initiative and to improve their soft, professional and technical skills.
Trading with other Practice Enterprises is an essential component of the concept. Practice Enterprises trade with each other in a closed economy according to strict commercial principles. The global practice enterprises network consists of thousands of Practice Enterprises.