Designing and Implementation of Teaching Factory in the Department of Accounting and Business Administration at Bali State Polytechnic: Fostering Financial Literacy and Entrepreneurship

Vocational education institutions focusing on practical training aim to provide learners with expertise in specific fields. Proficiency in both physical and intellectual skills involves direct engagement with tools similar to those used in real-world settings during the learning process. The Teaching Factory (TeFa) model is a production/service-based learning approach that references the industry standards and procedures, executed within an environment mirroring real-world industry practices. TeFa serves as a bridge to close the competency gap between education and industry demands. In the Department of Accounting and Business Administration, a TeFa collaboration with industry. This initiative stems from need analysis, revealing students’ high enthusiasm for entrepreneurship, while most lack businesses. The TeFa aims to empower more micro, small, and medium enterprises (MSMEs). This paper is a part of the applied research collaboration in the Matching Fund 2023 project to address the demand for entrepreneurship support among students, aligning with the Merdeka Belajar Kampus Merdeka (MBKM) program and government efforts for digitalized MSMEs. The program’s sustainability is crucial for meeting business needs and enhancing awareness in finance, taxation, and accounting. Trust is essential for the close relationship between business and these fields, making early establishment of the student center crucial. Ultimately, this project aims to improve financial literacy, entrepreneurship, and digitalization for MSMEs in Bali, fostering cooperation between academia and industry, addressing skill gaps, promoting student involvement, and serving a dynamic industry landscape.