WHAT IS A PRACTICE FIRM?
A commercial practice company (epco) is a trainee-run company that operates like a real business. It reproduces the business procedures, products and services of a real company. A practice firm resembles a real one in form, organization and function.
Under the guidance of one or more trainers/coaches and business mentors, students and trainees create their practice business from the following elements:
- Product development
- Distribution and sales
- Marketing and human resources
- Accounting/finance
- Website design
As employees of the practice firm, trainees are responsible for its performance and, thanks to the learning-by-doing methodology, they develop the following skills in particular:
- Market research
- Marketing and digital marketing
- Inventory management
- Planning and logistics
- Sale of goods or services
- Salary processing and payroll taxes
Each company conducts business, both nationally and internationally, with other companies within a network of practice firms, following standard business procedures and frameworks.
There is no actual transfer of goods and money, but commercial transactions and financial exchanges take place, orders are placed, invoices are issued, payments are made and general and analytical company accounting is set up.
There are standard equipment and information technology (hardware and software) requirements for running a practice. To make the experience as realistic as possible, each learning area is divided into different sections representing the different departments of a company, such as reception, purchasing, human resources, accounting and marketing.
The Practice Enterprise approach emphasizes learning in four key areas by applying the learning-by-doing methodology:
- Ownership: Trainees take responsibility for their own learning.
- Experience: Trainee learning is authentic and realistic.
- Cooperation: Trainees learn together and understand the dynamics of teamwork.
- Reflection: Trainees experience the consequences of their decisions and apply this learning to future challenges.
