Business simulations in financial management courses : implications for higher education

Abstract

Business simulations provide a teaching method that typically yields (1) more hands-on experience, (2) a higher level of excitement, (3) a higher noise level (and yet a lower incidence of problems), and (4) more commitment than traditional methods of teaching (McLure 1997, 3). Business simulations are experiential learning opportunities that have been successfully used for higher education in a wide range of disciplines. They are also ideally suited for use in adult education, where the focus is more on facilitating learning than traditional methods of knowledge transfer are. This article reports on a study that examines the value added by business simulations in a financial management course, as perceived by the learners. The reasons why learners experience this teaching method as positive are investigated. It would seem that higher education in financial management has much to gain from a wider application of business simulations.