Social Entrepreneurship: How Can Social Innovation Be Tackled Through Challenge-Based Learning, and What Is the Impact on Students’ Entrepreneurial Skills?

Challenge-Based Learning (CBL) is a constructivist pedagogical approach increasingly adopted in higher education, offering experiential learning that enhances entrepreneurial skills while immersing students in real-world job contexts. CBL redefines teaching roles, positioning educators as coaches and mentors, and delivers practical solutions for companies ("challenge providers"). This paper examines CBL as an innovative teaching method to foster social innovation and entrepreneurial skills. It uses the case study of the "Sustainability and Social Entrepreneurship" course at the University of Trento. The 48-hour course (8 ECTS) involves developing social business models based on challenges from local organizations. Diverse student teams are formed using personality tests to ensure balanced collaboration and final assessments include oral presentations and executive summaries. Data collected through the European EntreComp framework and reflective tools show significant gains in entrepreneurial skills, including opportunity identification, creativity, teamwork, problem-solving, and communication. Challenge providers benefit from innovative ideas, talent recruitment, and knowledge exchange. The study acknowledges the limitation of small class sizes and provides managerial insights for educators integrating CBL into management curricula focused on entrepreneurship and innovation.