Real-world learning through student enterprise-the startup phase

In the fall of 2000, Michigan Technological University implemented an interdisciplinary, multi-year program whereby teams of students solve real-world problems as part of their undergraduate education. Called the MTU Enterprise Program, the main goals are to improve the business and communication skills of the graduates by forming and operating a student-run business. One such enterprise is Automotive Systems (ASE). Formed from scratch, ASE is a consulting firm providing engineering services (i.e., modeling, design, testing and innovation) to the automotive systems market. This paper compares and contrasts the Automotive Systems startup to that of a typical commercial venture. It describes the recruitment, organization and business plan development activities during the first two semesters. Conclusions are then drawn relative to the "real world" value of this experience to students, clients and faculty.