What is a PE?
A PE(Practice Enterprise) is a virtual company designed to enhance self-directed learning and develop human potential. It mirrors the business procedures, products, and services of a real enterprise, offering trainees an immersive and practical work and business experiences.
As “employees” and/or “co-founders” of the Practice Enterprise, trainees are challenged, through practical experiences, to manage roles across different departments. They are responsible for its operations and performance. In addition, each company engages in national and international business activities with other virtual companies within the Practice Enterprise network. All procedures and processes follow standard commercial business frameworks.
By managing the day-to-day operations of a company, students not only develop core work skills and an entrepreneurial mindset, they also identify career pathways that align with their interests, talents, and aspirations.
Under the guidance of facilitators and business mentors, trainees engage in real-world projects and roles that address the demands of the modern economy and society.
Global Collaboration and Learning
PE fosters collaboration by connecting trainees with peers from over 7,000 Practice Enterprises across 40 countries. Training takes place in a safe, simulated environment that combines work-based learning with global perspectives, offering trainees the chance to engage in realistic international trade and develop cultural competencies.
A Solution for Schools and Institutions
PE programs offer schools and institutions a structured yet flexible way to provide students with meaningful, skills-based career experiences. Through task-based curricula, trainees "test drive" careers, build in-demand skills, and identify opportunities that align with their passions and aspirations—all while gaining the confidence to succeed in the workplace or as future entrepreneurs.
Key Players in a PE
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In a Practice Enterprise, the trainees or students assume the roles of 'employees' and/or 'co-founders' of their business. They collaborate in teams to accomplish tasks aligned with their various learning goals. Career experiences encompass business planning, budgeting, marketing, sales, purchasing, taxation, finance, and human resources. In addition, entrepreneurship experiences include business modeling, financing, product development, and business development.
Upon joining their enterprise, trainees develop career experiences ranging from foundational job skills to specific roles and responsibilities (R&R). They gain practical job skills by engaging in projects facilitated by corporate partnerships. Through this process, they learn the business procedures, tasks, and skills necessary for ensuring their company's viability. Like actual employees, they apply their knowledge to the responsibilities of their roles.
Trainees also acquire transversal skills such as teamwork, communication, goal setting, planning, time management, and other competencies essential for employability and career development.
Practice Enterprise emphasizes the following areas:
Self-Directed: Trainees take charge of their learning, progressing at a pace that suits them.
Practical: Trainees gain hands-on experience by applying their skills and knowledge to real-world tasks.
Collaborative: Trainees work with peers, building teamwork skills and understanding the value of cooperation.
Learning from Failure: Trainees reflect on their decisions, learning from mistakes to improve future performance.
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In a Practice Enterprise, trainers and teachers adopt In a Practice Enterprise, trainers and teachers take on the role of workplace coaches or mentors, guiding and supporting trainees as they engage in activities that often differ significantly from traditional learning methods. Their role is to motivate, challenge, and support trainees as they assume diverse roles and responsibilities within the simulated business environment.
Initially, trainers adopt a directive approach, actively structuring and leading the Practice Enterprise activities. As trainees build confidence and competence, trainers transition into a facilitator role, allowing trainees to collaboratively manage their Practice Enterprise. Throughout, trainees are held accountable for both their learning journey and their company’s business development, while remaining under the trainer's supervision.
Practice Enterprise trainers and teachers receive specialized training from their national network, equipping them with the necessary guides, tools, and evaluation procedures to effectively manage and assess the operations of a Practice Enterprise. This ensures consistency and adherence to established business standards.
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In the Practice Enterprise ecosystem, national networks are typically integrated into a ministry, a non-profit association or foundation, or housed within an educational institution.
These networks are overseen by autonomous Central Offices, which perform essential macro-economic functions and provide support akin to what real-world businesses rely on. This infrastructure creates a comprehensive economic simulation tailored to Practice Enterprises within each country.
The Central Office delivers a range of commercial and regulatory business services, including:
Banking systems for transactions.
Customs for virtual trade.
Income and payroll taxes to simulate fiscal responsibilities.
Utilities management.
Business registration processes.
Beyond these services, the Central Office takes responsibility for:
Training trainers to effectively lead and guide Practice Enterprises.
Managing a national database of Practice Enterprises.
Operating the banking system that underpins transactions within the simulation.
Enabling online connectivity between national Practice Enterprises and their international counterparts.
Through these efforts, the Central Office acts as the backbone of the Practice Enterprise network, fostering collaboration and integration between trainers, trainees, and enterprises on both national and global scales.
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Many Practice Enterprises collaborate with mentor companies from the real business world. These mentor companies serve as models for Practice Enterprise activities and assist trainees in preparing for the realities of the workforce.
These real-world companies offer advice and insights on business processes and the functioning of international business. They may also provide real projects and challenges as tasks for students, helping them develop real-world work skills within the Practice Enterprise economy.
By introducing real business practices to Practice Enterprises, mentor companies ensure that training aligns with the needs and demands of the business world. This prepares trainees more effectively for future professional challenges.
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The worldwide network is coordinated by the non-profit association PEN Worldwide. Its administrative and technical team is based in Germany. The team manages the Coordination Center, which serves as the international office of the worldwide network. It ensures the promotion and support of the Practice Enterprise concept around the world.
The Coordination Center supports the commercial activities of Practice Enterprises, organizes international events and competitions, and administers the association. It also partners in projects that enhance work-based skill and competency development, trainers training, and network growth and development.
The History of Practice Enterprises
The origins of the Practice Enterprise concept date back to the late 19th century. Letter exchange clubs were formed in Europe as a way of training in commercial communication. These clubs grew increasingly popular and evolved into the first practice bureaus around 1920, which were used in several countries across Europe.
The first structured approach to the practice bureaus came with the “German Practice Economy” in 1934. In 1948, the first central office for Practice Enterprises was established by the German Trade Unions. This development created a real practice firm market, offering services such as a database for connections, bank services resembling real banking systems, mail exchanges, and international trades with countries like Austria, Sweden, and Switzerland. In the 1960s, the first central office organizing services for the network was formed in Heidelberg, Germany, and the first fair for Practice Firms was held in a gymnasium in Northern Germany in 1964.
In 1993, a European project was funded by the European Social Fund and the German Federal State of North Rhine-Westphalia to connect the various networks worldwide into an international association. This project established the non-profit association EUROPEN, initially a department of the Bfz-Essen e.V. in Germany. As the association grew internationally, it became an independent entity in 1997 and adjusted its name in 2005 to EUROPEN-PEN International to emphasize its global membership. Since 2021, the international association has been known as PEN Worldwide.
The Learning Effect of PEs
Building Future-Ready Skills
The Practice Enterprise bridges theory and real-world practice, providing trainees with an immersive and realistic work-based learning experience. This environment enables them to acquire a wide array of commercial and entrepreneurial skills in administration, accounting & finance, ICT & digital, social & digital media, human resources, sales & marketing, purchasing, planning, communications, and commerce.
Learning for a Lifetime
The Practice Enterprise promotes academic achievements and builds an interest in lifelong learning and self-improvement. Engaging actively in decision-making and learning, trainees build on transversal skills including motivation, creativity, responsibility, and other soft skills. They explore different jobs and careers, develop professionalism, leadership, communication, and teamwork. A Practice Enterprise boosts employability and entrepreneurial spirit by immersing trainees in the practical demands of the workplace and economy.