This paper explores innovative pedagogical practices within a Business Science degree, emphasizing collaborative learning through a Challenge-Based Learning (CBL) and simulated business processes. The course is designed to engage students in real-world problem-solving through the application of design thinking, structured into stages such as brainstorming, prototyping, testing, and implementation. This approach fosters creativity and analytical reasoning while integrating knowledge from other courses to develop essential business management skills.

The business simulation serves as a key methodological component, facilitating the practical application of marketing, strategy, finance, accounting, taxes and legal procedures within an interactive and structured learning environment. Students are required to design and develop an innovative business model that incorporates market research, financial planning, accounting, and legal compliance. To enhance their analyses, students use statistical software for market research, artificial intelligence (AI) tools for business ideation, and digital platforms for collaborative teamwork. Furthermore, the introduction of unexpected challenges encourages the development of problem-solving skills, which is supported by enterprise resource planning (ERP) software and other information systems.

This pedagogical strategy strengthens critical thinking, adaptability, and real-world business engagement. Ongoing teacher feedback enables continuous refinement of students’ approaches. Although the course successfully fosters engagement, interdisciplinary skills, and innovation, challenges such as team coordination and sustained motivation highlight the complexities of collaborative, hands-on learning. Initial difficulties in adapting to the CBL methodology emerged as a notable challenge, while opportunities were identified in leveraging AI and emerging technologies. Additionally, resistance to teamwork in diverse groups was observed as a potential obstacle to effective collaboration.

The adaptability of the CBL framework allows for customization across disciplines by tailoring challenges and resources to specific academic and professional contexts. This flexibility ensures alignment with diverse pedagogical objectives. Notably, students demonstrated an ability to shift their approach using AI-driven tools, ultimately developing an innovative and well-received business concept. This case study highlights the transformative potential of CBL in fostering collaboration and creativity in response to evolving challenges.

Furthermore, the course stimulates critical thinking and exploratory skills, activating cognitive processes such as reflection, interaction, and integration within simulated business contexts. By addressing real-world challenges, students enhance their entrepreneurial skills, integrate theoretical knowledge with practical applications, and develop essential competencies in problem-solving, collaboration, and critical thinking. This approach ultimately enables students to create actionable business solutions in a dynamic and engaging academic environment.

Keywords: Business Simulation, Challenge-Based Learning, Business Practice, Pedagogical Strategy.