The accelerating pace of socio-economic change in Europe—driven by digitalisation, artificial intelligence, decarbonisation, and labour market transformation—requires the education and training sector to modernise urgently. Vocational Education and Training (VET), situated at the intersection of education and industry, must reposition itself as a catalyst for innovation, resilience, and sustainable growth.

BT4VET (Business Transformation for VET) is a European project co-funded by the ERASMUS+ KA220-VET programme (2024–2026). It responds to the need for systemic change in the VET sector by equipping providers with innovative business modelling and strategic management tools. The project’s core output is a Digital Business Dashboard—a flexible, user-adaptable digital platform that supports VET institutions in designing and implementing sustainable, integrated service strategies aligned with the needs of local economies and societies.

BT4VET’s central aim is to enable VET institutions to become proactive agents of socio-economic development. The project addresses both internal structural challenges—such as institutional inertia and overreliance on public funding—and external perceptions that limit VET’s credibility and visibility as a strategic actor. Through digital transformation and strategic innovation, BT4VET fosters a new positioning for VET: not only as a provider of education and skills but also as a key player in regional innovation ecosystems.

The project is built around three specific objectives:
- To develop strategic positioning capabilities among VET leaders and institutions, enabling them to offer integrated, market-relevant services to enterprises and local stakeholders.
- To enhance institutional and managerial competences through training in operational, digital, and sustainable business models, balancing educational missions with financial viability.
- To reduce dependency on public funding by fostering autonomous, future-proof institutional strategies that ensure resilience and adaptability.

BT4VET is implemented by a diverse consortium of six VET providers from Italy, Belgium, Spain, Latvia, and Poland. This transnational collaboration ensures a broad applicability of outcomes and encourages peer learning across different education systems and socio-economic environments.

In addition to its digital innovations, BT4VET is committed to advancing the principles of Diversity, Equity and Inclusion (DEI) and sustainability, embedding these values across its tools, training materials, and policy recommendations.

This paper will present the conceptual framework, methodology, and early outcomes of BT4VET, with a focus on its implications for VET policy, institutional innovation, and strategic educational leadership. It contributes to the ICERI 2025 themes by offering a replicable, scalable model for enhancing the relevance and impact of VET in the context of Europe's green, digital, and inclusive transitions.

Keywords: Vocational Education and Training, Digital Transformation, Business Modelling, Strategic Innovation, Sustainable Education, ERASMUS+, Institutional Resilience, Educational Leadership, DEI, Green and Digital Transition.