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In an era of change and uncertainty, there is a need for employees who are both resourceful and flexible. The creation of such competencies in graduates is the objective of the UK Training Agency′s recent Enterprise Initiative in Higher Education. This Initiative is reviewed and the outcomes of one project, the Shell Technology Enterprise Programme, which exposes undergraduates, of any discipline, to a period of action learning in a small firm, is explored. In total, the experiences and attitudes of 75 students are examined, together with the views of their employees. The study concludes that, as described in the programme, action learning can help develop the requisite competencies in students, at the same time developing their understanding of business and management. However, to be fully effective, it needs to be incorporated into the undergraduate curriculum.

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