Program Description

A Virtual Enterprise is a simulated business that is set up and run by students to prepare them for working in a real business environment. With the guidance of a teacher ("consultant") and real-world business partners, the students determine the nature of their business, its products and services, its management and structure, and engage in the daily operations of running a business. Emphasis is placed on using current business software, communications, and the Internet for business transactions.

More and more classroom teachers have found ways to bring the business world to their students through programs such as the Stock Market Game and Junior Achievement. These programs teach entrepreneurship and practical skills that are essential to career readiness while promoting healthy competition to motivate students. The Virtual Enterprise Program follows in the footsteps of these other efforts, and has the added advantage of linking students in a global business network. This simulation takes the teacher outside of the traditional instructional paradigm and then places the students on the front lines of the business world.

As the network of student-run businesses in the United States continues to grow, Virtual Enterprises are linking together in regional, national and global networks so that the firms have each other as trading/business partners. Such a network permits standardization and coordination of activities among all firms within a city, state, or country.

Virtual Enterprise began in Europe after WWII, though the idea dates back to apprenticeship concepts of the 17th century. There are now over 3,000 Practice Firms (as they are called outside the USA) in Europe, Canada, Australia, Asia, and Latin America. In 1994 and 1995, representatives from the New York City Board of Education first observed the success of the program on a visit to schools in Vienna, Austria. They decided to pioneer the concept in the United States. The first California Virtual Enterprise program in the United States was implemented in seven New York City high schools in September 1996. Currently, there are over 400 practice firms operating in the United States at secondary and post-secondary levels.

The Kern High School District in partnership with the El Tejon Unified School District established the California Virtual Enterprise in 1998. The Kern High School District is the location of the Virtual Enterprise Center (VEC) for the State of California. This center acts as a central office (and clearing house) for the California Network and serves as a link to other national and international firms. For teachers/coordinators the center offers annual training and staff development activities, curriculum resources and consulting. For students the center offers electronic banking and mail services, web page links, company resources, and network coordination of activities.

For more information contact program coordinator Nancy Phillips at nphillips@khsd.k12.ca.us, 501 South Mt. Vernon, Bakersfield, CA 93307 661/396-4430.

California Virtual Enterprise is founded on the five fundamental beliefs that-

• All students can learn
• Learning should be relevant
• Students should apply what they learn
• Students should be encouraged to explore career options
• Students should understand the world of work

Since all schools are basically the training ground for the future's workforce, the Virtual Enterprise Program is leading the way in workforce preparation.

As the business world constantly changes, the business education world must also change to meet the needs of industry. A simulated working environment, equipped with the latest business technology, will allow students and teachers to enter the virtual business world in the pursuit of global business skills through project based instruction. When Virtual Enterprise students graduate and enter their prospective career path, they bring with them a core of skills founded in the Career-Technical Education State Standards.

Virtual Enterprise students understand the implications of global changes and the role of the United States as a major player in the international system. Change is the constant in international, political, social, and economic systems; and Virtual Enterprise is comfortable in this changing world. The goal of every Virtual Enterprise is to combine the motivation to succeed in a chosen field with the skills necessary to manage career advancement. We believe that well prepared, highly motivated Virtual Enterprise students are among the world's best resources for the new century.

California Virtual Enterprise serves a wide range of student abilities and interests. A strength of the program is its flexible nature. The simulation model is utilized to serve diverse student populations ranging from special education students in high school to community college students working on a business degree. Some school sites allow open entry, while other sites require prior course work to enroll in the Virtual Enterprise Program. Regardless of individual models, the Virtual Enterprise Program's goal is to prepare students for the world of work. The guiding curriculum objectives that should be used by each program is outlined in this website. Since the Virtual Enterprise Programs vary significantly, school site teachers and administrators must tailor their desired program outcomes according to their uniqueness. The career preparation standards that should be addressed by all Virtual Enterprise Programs are:

Virtual Enterprise students will understand principles of effective communication. They will communicate both orally and in writing. They will listen attentively and follow instructions, requesting clarification or additional information as needed.

Virtual Enterprise students will understand business-related career paths and develop strategies for obtaining employment within their chosen fields. They will assume responsibility for professional growth. They will understand and promote the role of their field within a productive society, including the purposes of professional organizations.

Virtual Enterprise students will understand key concepts in group dynamics, conflict resolution, and negotiation. They will work cooperatively, share responsibilities, accept supervision, and assume leadership roles. They will demonstrate cooperative working relationships across gender and cultural groups.

Virtual Enterprise students will understand how personal skill development affects their employability. They will exhibit positive attitudes, self-confidence, integrity, perseverance, self-discipline, personal hygiene, and ethical conduct. They will manage time and balance priorities as well as demonstrate a capacity for lifelong learning.

Virtual Enterprise students will exhibit critical and creative thinking skills, logical reasoning, and problem solving. They will apply numerical estimation, measurements, and calculation, as appropriate. They will recognize problem situations; identify, locate, and organize needed information or data; and propose, evaluate, and select from alternative solutions.

The California Virtual Enterprise Program endorses and endeavors to achieve the California Department of Education Business Education Model Curriculum Standards as outlined in this manual.

California Virtual Enterprises partnered with the California Department of Education, County Superintendent of School offices, California School-to-Career Consortiums, Tech Prep Consortiums of California, the California Business Education Project, and Junior Achievement. Through local contact with business partners the Virtual Enterprise student develops an understanding of the diversity of jobs through job shadowing, mentorship, internships and employment. Additional support from Virtual Enterprise Business Partners includes assistance with curriculum development, student and teacher workshops, student scholarships, student internships, teacher externships, and financial support.

The International Network provides structure for all Virtual Enterprise financial transactions. EUROPEN is the international network of practice firms and consists of thirty-five countries with over 3,000 practice firms (Virtual Enterprises in the U.S.). The primary objective of EUROPEN is to support the training of people in the business simulation around the world . For more information visit the EUROPEN web site www.europen.de/english/practicef.html.

The Practice Firm concept has grown rapidly in the United States during the past five years. Currently there are three central offices in the United States that coordinate activities for their respective networks. These include the Center for Simulated Business Services at Mercer County Community College, Virtual Enterprises, International(tm) in New York City, and California Virtual Enterprise in Bakersfield, California. The proliferation of practice firms at secondary, and post-secondary levels within the U.S. and the continued growth of this instructional model, has created a need to establish a federation of central offices to coordinate and guide the growth and development of the concept in the United States. This organization is called The American Federation of Central Offices (AFCO).

The American Federal of Central Offices (AFCO) is the U.S. link to EUROPEN. Members of AFCO may attend EUROPEN meetings, where one vote is cast for United States interests.

Interested schools or districts should contact Iris Blanc (New York) or Nancy Phillips (California) depending upon your geographic distance to either center. You will be referred to a regional office nearest your school, if one exists. Post-secondary institutions outside of California should contact Carol Weber at Mercer County Community College.

Regional networks are comprised of a cluster of schools within a region. A regional office provides services to the schools within that region. Each regional office must belong to a central office. An example of a regional network is the Kern County Region which consists of fifteen enterprises. Students and teachers in the regional network meet periodically to plan and participate in simulation activities. These activities could include conferences, workshops, meetings, and presentations. Each regional network's activities will vary depending on the coordination and participation of teachers, administrators and partners within the network.

The California Virtual Enterprise Center (VEC) is located in Bakersfield, California and is managed by the Kern High School District. For the participating schools, the California VEC provides the following services: electronic banking (a clearing house with other national and international banks), electronic mail, network web site, data collection, company ratings, network meetings, curriculum resources, and also acts as a communication center for the network. State coordinators also organize activities for many California students to attend National and International Trade Fairs. The central office offers annual coordinator training for new participants in the network; this is a mandatory component of the California simulation.

The California Network Statewide Steering Committee develops and recommends policy and direction for the simulation. The committee membership includes broad representation throughout the State of California. Representation comes from three geographical areas: Northern California, Central California, and Southern California. Northern California is defined as all areas North of Modesto running east and west from that point, but not including Modesto. Central California is defined as: all areas including Modesto running east and west to Frazier Park. Southern California is defined as all areas south of Frazier Park running east and west. Certificated committee members consist of two voting participants per region (members must be currently teaching a virtual enterprise class). In addition, a business partner from each region is nominated to the committee by region representatives and is a voting member of the committee. The Coordinator of the California Network constitutes the final voting committee member.

Elections for new seats are voted on in September. All current coordinators are placed on the ballot, unless they decline the nomination. The committee attends two meetings annually. For more information on policy, minutes and committee members; contact Nancy Phillips at nphillips@khsd.k12.ca.us.

The California Network web site is the central communication point for the California based Virtual Enterprises. It offers network calendars, news, curriculum recourses, web links, on-line forms, banking services, email services, and serves as a portal to the virtual world.

The web site can be found at www.virtualenterprise.org.

There are specific requirements of all coordinators to submit data on students involved in the California Virtual Enterprise Program. The purpose of this data collection is to evaluate the educational progress of the California Program and to guide the future development of the simulation. Coordinators must submit information online using Virtual Enterprise Active Server Pages (ASPs). All forms are located on the www.virtualenterprise.org web site. Please contact the California VEC if you have any questions. Other data collection includes student assessments and student submission of company projects. Due dates and detailed information are located in the 'Tasks' section of this program manual.

The success of each Virtual Enterprise is directly correlated to how well each department of the enterprise is organized and managed. Each Virtual Enterprise receives a rating by the California VEC at the end of each quarter or semester based on the outcome of each task. The California Network of Virtual Enterprises, International is made up of two different kinds of companies, ten-hour programs and five-hour programs. A ten-hour program meets two periods per day, five days a week. A five-hour program meets one period per day, five days a week. Programs that do not fit the structure of these two types of companies must set up and submit their own task time line to the California VEC.

There are general timeline rubrics and task specific rubrics used on major quarter tasks. Quarter tasks can be found in the program manual and on the web site. Each company must register completion information on the California website www.virtualenterprise.org. Specific directions are located on each task sheet. Only material submitted according to the task sheet will be evaluated.