Page 85 - guidance-supporting-europe-s-aspiring-entrepreneurs-policy-and-practice-to-harness-future-potential

Guidance supporting Europe’s aspiring entrepreneurs
Policy and practice to harness future potential

in real economic activities, albeit on a small-scale, so as to be able realistically to
experience how companies operate.
These activities are an important tool in career exploration for all IVET
students; they provide an important opportunity to experience entrepreneurial
activity and potentially to broaden their career horizons (European Commission,
2005b). Many studies refer to mini-companies as ‘the most effective way’ of
exposing learners (and teachers) to business methods and challenges. They see
it as particularly suited to students in vocational education as many VET students
prefer active learning rather than sitting in a traditional school environment and
passively taking in knowledge.
Mini-companies can be applied in all types of schools and at all levels of
education (primary, secondary and tertiary), although most mini-companies are
found in upper secondary education, including IVET. In some countries, company
programmes mainly take place within the school programme (such as in Austria,
Czech Republic, Finland, Ireland and Norway). In others they are outside of
normal school hours and the school programme (such as in Belgium (Wallonia),
Germany, Estonia and Sweden). In a few Member States, mini-companies can
be seen in both settings (ibid.).
There are two principal types of mini-company (European Commission,
2005b). First, ‘real companies’ produce and sell products bringing together
groups of students who are then responsible for the whole range of activities
linked to the operation of a company: choosing their company’s product or
service, preparing a business plan, nominating managers, raising capital,
developing a marketing strategy, procurement and producing and selling their
chosen product/service.
Second, those developed as virtual, fictitious or practice firms to provide a
realistic simulation of an economic activity. Mini-companies that are based on a
simulation also require groups of students to undertake a wide range of activities
that replicate the operations and challenges of a real company, apart from
actually producing and selling a product or service. Within this group of mini-
companies there are again two different types. First are those that depend
heavily on computer simulation, but also involve team work (i.e. for making
business decisions) and interaction with actors within and outside of the school
environment (i.e. teachers, mentors from the business or local community).
Second are those that emulate a real company as realistically as possible, for
example by providing students with an office space and the necessary
equipment; in this case the only difference between a real mini-company and a
virtual mini-company is that no goods or services are produced and no real

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