Despite widespread policy advocacy for work-based learning in vocational education, empirical evidence on how the Teaching Factory (TEFA) model operates as a holistic management system to develop entrepreneurial competence in Indonesian retail business programmes remains limited. This study investigates the implementation of TEFA in the Grade XI Retail Business programme at SMK Negeri 2 Purwakarta, examining planning, organising, implementation, and supervision processes, and their collective impact on students’ entrepreneurial competence. Using a qualitative case study design, data were gathered through semi-structured interviews with twelve key informants, passive participant observation over ten instructional weeks, and document analysis. Findings reveal that TEFA is implemented as a simulated retail operation aligned with industry standards, and that its four management functions jointly contribute to students’ development of technical skills (customer service, stock management, and point-of-sale operations) and non-technical competencies (communication, teamwork, self-confidence, and entrepreneurial mindset). The study further identifies that incomplete curriculum integration and scheduling conflicts represent systemic constraints that limit TEFA’s full effectiveness. These findings offer empirically grounded, contextually specific evidence for policymakers and school practitioners seeking to optimise TEFA implementation as a strategic mechanism for entrepreneurship education in vocational secondary schools
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