The idea of an office simulation can be traced back to the 17^th Century.  In Europe, simulated practice firms have been established for many years as places for commercial training.  Since World War II, however, these simulated offices have evolved into a practical vehicle for interdisciplinary instruction and an in-school work experience.

After visiting practice firms in Vienna, Austria in 1994, the New York City High School Superintendents spearheaded the development of practice firms (virtual enterprises) in seven New York City public high schools. The year was 1996. Today there are 66 firms in fifty-three high schools within New York City, with many more in the planning stage. The New York City Department of Education is proud to have pioneered this concept in the United States.

Virtual Enterprises International™ is a trademark of the New York City Department of Education.  

A Virtual Enterprises (VE) is a simulated business that is set up and run by students with the guidance of a teacher/facilitator and a business partner. This program allows students to experience, in a simulated business environment, all facets of being an employee in a firm.  The Virtual Enterprise involves students in every aspect of a business, including human resources, accounting, product development, production, distribution, marketing and sales.  This workplace simulation enables students to understand how employees, workgroup teams, and departments interact with each other and work together for the goal of the company.  

The program is based on the European concept of practice firms, in which students run simulated offices in their schools and engage in virtual trading with other practice firms. It is a comprehensive and student-oriented approach towards teaching and working that provides practical and task-oriented instruction in a real-world environment, which ultimately conveys the expectations of the workplace.   With communication links to nearly 3,000 firms around the world, the VE exposes students to different cultures, business practices and currencies and gives students a broader international perspective.  Students engage in hands-on applications, problem solving and written and verbal communication.   In addition, students learn about a variety of careers associated with business and industry, acquire global economic knowledge (including monetary and business systems of the countries in which the practice firms operate), and use technology as applied in business, including the use of the Internet for global transactions and communications.    

·         The Virtual Enterprise

Five departments comprise the VE company: Administration, Accounting/Finance, Marketing, Sales/Purchasing, and Human Resources.  The company has a Chief Executive Officer (CEO), a president, and vice-presidents that head each department. The responsibility of Administration is to oversee company operations.  The Accounting Department handles all monetary transactions, including accounts receivable, accounts payable as well as the company banking system.  The Accounting and Human Resource Departments manage the 401K plans for the employees. The Human Resources Department handles all personnel issues, including the development of an Employee Manual (outlining company policies and procedures), the hiring and firing of employees, and employee evaluations. The Sales/Marketing Departments plan and execute marketing, advertising and promotional strategies for the business.

Students actively participate in the proceedings of their respective departments and directly contact other practice firms to do business.  In this process, students learn in a way that allows them to improve their ability to handle information, to make decisions, to work in groups and independently, to set up objectives, and to evaluate—in other words—to be life-long learners. 

The work is task-oriented.  Where possible, students rotate jobs and perform tasks in all departments (except where a special skill is needed--like an art director). Students work alone or as part of a team.  In the VE company, errors in judgment do not bear disastrous consequences.  Instead, they become teaching and learning opportunities. 

The difference between a Virtual Enterprise and an actual business is that no goods are produced nor actual currency exchanged.  The transfer of funds is made electronically through a Web-based simulated banking system that links all U.S. firms with each other and with the rest of the world.

To become involved, students should see their guidance counselor, who can provide them with information about the program, prerequisites, and crediting.

The Teacher As Facilitator

In the VE learning environment, the teacher’s role changes from “sage on the stage” to “guide on the side.”  The teacher’s primary responsibility is to guide and direct student learning, not to deliver a daily prescribed “lesson.”

Corporate Business Partners

Corporate business partners adopt a school and provide direct assistance to VE students in that school. They help to identify professionals within the organization who can provide guidance and advice on various business issues related to the virtual enterprise.  In addition, corporate business partners provide the following:

-     schedule visits to their corporation so that students in the VE

     may visit their counterparts in the corporation.

-     work with the VE on the design of trade fair booths and the

     marketing of their products.

-     provide in-kind contributions (display materials, sample

     products) to support the development of the trade show.

-      provide internships for students or subsidize an internship at a

     community-based, not-for-profit organization.

-      provide externships for teachers

National And International Trade Shows And Other 

      Activities

Students engage in various business activities throughout the year, which create authentic applied learning opportunities.  Participation in national and international trade fairs as well as the business plan competition are the capstone components of the VE program that actualize the world of work, communications, technology and global business. 

Trade fairs provide students with the opportunity to present and market the products/services of their virtual business in a competitive marketplace with their local and global colleagues and peers. 

Last year's event was held on March 29-30, 2007 at the 69th Regiment Armory in Manhattan and it was the largest event ever hosted in New York City, with over 132 schools participating from all over the world.

Now in its twelfth year, this year's New York City Trade Fair will take place on April 3-4, 2008.

During the two-day period, the trade fair will host approximately one hundred exhibitors, representing New York City high school and college-based simulated business firms.  Domestic and international participation will include firms from our national and international network of firms. Set as a professional international exposition, the trade fair hosted more than 2,500 attendees last year and is expected to host 3,000 visitors this year, with delegations of students and educators expected from around the world.