Running a Simulated Business in High School: A Summary of Findings on the Implementation and Costs of Virtual Enterprises

States, districts, and schools are increasingly focused on strategies for expanding work-based learning (WBL) opportunities but have limited evidence on promising models that can be scaled. Classroom-based simulated businesses can immerse students in workplace culture and expose students to the expectations of a workplace. This brief presents findings and recommendations from a report on the implementation and costs of a WBL program called Virtual Enterprises (VE), which is offered in hundreds of high schools across the United States.

VE is an immersive, project-based learning experience offered through a high school course. Students in the VE course—typically 11th and 12th graders—establish and run a simulated business, taking on key roles and responsibilities in their firm (e.g., chief executive officer, marketing director). They demonstrate their business knowledge and skills in regional and national competitions and participate in a national marketplace run by the program’s developer, Virtual Enterprises International (VEI). VEI provides a curriculum and resources on a learning management system, as well as ongoing training and support for VE teachers.

The report evaluated the VE program in four high schools in Kern High School District (KHSD) in Bakersfield, California, and two schools in New York City Public Schools (NYCPS). The authors of that report surveyed and interviewed teachers and students, conducted site visits to schools, and created a cost tool.

The Six Schools Fully Implemented Four of the Five Core Program Components

There are five core components that all VE programs should offer (Figure 1). The authors found evidence of successful implementation for four of the five VE program components. Two schools in KHSD did not report implementing all the VE curriculum components that VEI had designated as core components.

Although these program components are important to effective program implementation, schools have flexibility around the design of their VE programs. The six schools studied delivered the program in varying ways, including:

Core Component	What Virtual Enterprises Includes	Study School Findings
Student-Driven Learning	Teacher is to be a “guide on the side” rather than a “sage on the stage” Students who lead departments are responsible for overseeing their teams and completing tasks with limited teacher support	All six schools implemented such learning with full fidelity Students and teachers emphasized the amount of student-driven learning as unique Students reported support from their peers as a team
A Business Environment	The classroom environment should mimic a business environment Students should have computers and other technical equipment, such as large screens for presentations The classrooms also implement business practices and norms (e.g., “clocking in,” acting professionally)	All six schools implemented the environment with full fidelity Observed classrooms did not look like typical classrooms (e.g., student groups arranged by department conference tables, stock tickers displayed)
Extended Learning Opportunities	Participation in regional trade shows and competitions (e.g., business plan, financial literacy, elevator speech) Youth Business Summit is a multiday event held in New York City every spring; only a subset of schools attend Engagement with employers to get exposure to business environments	All six schools implemented these opportunities with full fidelity Engagement in competitions varied, and KHSD schools were most enthusiastic Interaction with employers varied
Teacher Training and Support	Annual three-day, in-person conference Online orientation sessions for new teachers Regional training opportunities are offered, but vary across regions and over time Five regional directors provide on-demand support via email, videoconference, or site visits Teachers’ Lounge section of the online VE Hub for teacher questions	All six schools implemented training with full fidelity Teacher training choices varied Most teachers attended the in-person conference at least once
Project-Based Curriculum and VE Ecosystem	A year-long project to plan for and operate a simulated business Curriculum materials: (1) have tasks for all students and department-specific tasks; (2) designate some concepts as core and others as optional; and (3) specify sequence and timing A virtual marketplace and learning management system hosted by VEI	Four schools implemented the curriculum with full fidelity, two with partial fidelity Teachers were generally positive about the curriculum

The six schools studied delivered the program in
varying ways, including:

• Number of course periods: The two NYCPS schools offered the VE program as a two-period daily course, while the KHSD VE programs were one-period daily courses.
• Whether the course is built into a career and technical education (CTE) pathway: Four of the study schools across districts embedded VE into a pathway with one or more prerequisite courses, while two KHSD schools did not.
• Whether to use selective admissions processes: Five schools across the two districts reported using a selective process for choosing students for the program, including teacher recommendations, application processes, interviews, and course grades.

Teachers across the six schools reported only one barrier to implementing VE: insufficient time to cover the curriculum’s content and participate in extended learning opportunities. Teachers and school leaders reported many factors that supported the successful implementation of VE, including sufficient funding, VEI and district staff support, the embedding of VE in a business pathway, and student selection processes.

Teachers, administrators, counselors, and students perceived the VE program as offering many benefits for students, such as building general business knowledge, growing specific technical skills, getting opportunities for career exploration, and developing career and workplace readiness (also known as soft) skills. Teachers also described growth in students’ self-confidence. Both teachers and students shared that they enjoy the course more than their other courses.

The Costs of the Program Varied Widely Across Schools, and Travel and Teacher Compensation Were the Primary Cost Drivers

The report focused on the direct costs to districts and schools for the VE program. All VE programs pay an annual fee to VEI to access the curriculum, additional teaching resources, and training and support. Other costs include teacher compensation, administrative costs, business equipment, and travel for regional and national competitions. Costs were calculated on a per-student basis, and class sizes varied from 17 to 33 students.

The per-student costs of the VE program varied substantially across schools, from $1,862 to $6,024. Teacher compensation was a major driver of VE costs, accounting for 32 to 92 percent of total costs across the six study schools. NYCPS teachers allocated a greater proportion of their teaching time to VE, leading to higher overall compensation costs. Compensation also varied across districts and according to teacher education and experience. Travel was another cost driver, and two of the KHSD schools had substantial costs for travel across the country to the national conference. When optional costs are excluded, the highest per-student cost for VE was $3,625.

Schools and Districts Should Take Four Steps to Implement Work-Based Learning Programs, Such as Virtual Enterprises

District and school leaders should ensure that the WBL programs in which they invest have an evidence base. There is limited evidence to support WBL approaches; more is needed. Impact findings on VE will come in a future report. In the meantime, schools and districts should consider whether the core features of their approaches are evidence-based. The report describes how the five core features of the VE program are grounded in an evidence base.

School leaders and teachers should look to WBL programs that offer structured resources and support but might also appreciate some flexibility to tailor WBL programs. The VE program offers specified curriculum materials and many training opportunities, practices that should improve the likelihood of successful implementation. Across the six schools, researchers found that the five core features of the program were largely implemented as planned. At the same time, the VE program provides considerable flexibility for teachers in designing the program.

Sufficient funding is essential when districts and schools offer WBL programs, although schools might be able to lower costs by altering the design of the program. The VE program costs at least $1,862 per student, and school staff and leadership emphasized the importance of funding—Perkins, state, and local—in sustaining the program. Travel, multiperiod courses, and small class sizes drove up per-student VE costs, so modifications to these aspects could reduce costs for less resourced schools.

Schools should consider how prerequisite requirements and student selection processes might limit student access to WBL programs. Most of the teachers at the study schools valued their processes for preparing and selecting VE students. Integrating VE into business pathways (as recommended by VEI) provided students with foundational knowledge of business, and selective student admissions helped ensure that enrolled students were well prepared and engaged. However, these practices might also exclude students who would benefit from the opportunity to engage in WBL.

Schools and districts across the United States are interested in scaling WBL opportunities. A simulated business model, such as VE, can help schools overcome some of the barriers to WBL expansion, such as establishing employer relationships and providing off-campus student transportation to workplaces. The research covered in this brief shows that schools with varying settings were able to implement VE well, and the teachers and students participating in VE perceived the program as supporting improved career readiness and skill development among students. More evidence is needed on the program’s effects on student outcomes; a future report will document the authors’ findings on VE’s impacts.

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