Running a Business in High School: Evidence on a Work-Based Learning Program from Two Districts

• In Event: Evidence on Participation in High School Career and Technical Education Programs and Student Outcomes

Abstract

High schools across the country are looking for innovative work-based learning programs that can provide students with key career readiness skills in settings that prioritize applied learning. Early research suggests that work-based learning programs can help to improve the likelihood of high school graduation, college enrollment, and employment (e.g., Theodos et al., 2017). However, there is limited rigorous evidence on work-based learning programs that might be effective and scalable.

Virtual Enterprises (VE) is an innovative work-based learning program that is offered in hundreds of high schools across the United States. In the year-long course, students run a virtual firm, carrying out all of the activities necessary to operating a business. Students assume specific roles (e.g.,CEO, human resources director) and work together to develop a strategy for the firm and participate in a virtual economy with other VE firms. Students typically participate (in-person) in regional and national competitions. 

The VE program was identified as promising and in need of additional evidence by the Career and Technical Education Research Network (Hughes, Miller and Reese, 2021). RAND and American Institutes for Research partnered on an evaluation of VE in two districts: Kern High School District and New York City Public Schools. This paper presents early descriptive and quasi-experimental evidence on the VE program. We draw on districtwide administrative data from 2013-14 to 2023-24 and student baseline and follow-up surveys conducted with seniors in six schools in 2023-24 and 2024-25 to conduct descriptive analysis of participant characteristics and assess the impacts of the program using a propensity score matching approach. To assess implementation, we conducted a review of program and training materials, collected surveys from VE teachers in Kern and NYC schools (and a broader set of VE teachers nationally), attended the national competition, and conducted site visits to observe classrooms and hold interviews and focus groups with staff and students.  

Students and VE teachers report that participation in VE is demanding for students and requires strong engagement. Classroom activities are project-based and often student-led (e.g., by the CEO or other leadership), with teachers playing more of a facilitation role. Teachers and students describe the competitions as an important factor driving student engagement. Students and VE teachers perceived the experience to be rewarding and reported that it provided valuable exposure to business careers. Many VE schools use selective application processes to identify VE students. Students who participate in VE differed from other seniors at baseline: they had higher prior test scores; were more likely to have taken honors, Advanced Placement, and business CTE courses; and had more exposure to some other types of work-based learning. Our propensity score analysis leverages our survey and administrative data to eliminate differences in observables. Preliminary findings suggest small positive effects of VE participation on financial literacy, plans to attend college, and plans to start a business. Analysis of historical data indicated that VE participants had higher college enrollment, persistence and completion rates than comparable non-participants.

Authors

• Lindsay Daugherty, RAND Corporation
  Presenting Author

• Umut Ozek, RAND Corporation
  Non-Presenting Co-Author

• Nazia Wolters, RAND Corporation
  Non-Presenting Co-Author

• Kelly Reese, American Institutes for Research
  Non-Presenting Co-Author