Creating a virtual company and keeping it "in the black"

The Wireless Communication Enterprise (WCE) is one of 17 "virtual companies" in Michigan Tech\´s Enterprise Program, launched in the fall of 2000. The WCE consists of about 70 second to fourth year students committed to developing their entrepreneurial and R&D contract experience -for credit - in wireless and photonics technologies. While the author is the faculty advisor for the WCE, the students run the company, create their own product development ideas, negotiate contracts, hire and fire "employees," participate in profit sharing, and build very strong resumes before they graduate. The WCE business model is to create cash flow through R&D contracts with industry, and use the profits for internal product development initiatives. Ownership of the virtual company is very much in the hands of the students. This paper describes both the philosophical and practical aspects of the implementation and sustained growth of our virtual company.