--- title: What is a business simulation | Cesim Business Simulations description: A business simulation is an interactive software to run a virtual business, improving participants' decision-making, teamwork & essential business skills. image: https://www.cesim.com/hubfs/Cesim%20preview.jpg --- Sales inquiries:(UK) [+44 2033185655](tel:+442033185655) | (US) [+1 (866) 644 0518](tel:+18666440518) | [Our team](https://www.cesim.com/about/our-team) [Login](https://sim.cesim.com) [Register](https://sim.cesim.com/r/) [Request a demo](https://www.cesim.com/demo) 🌐 English Français Español Português-BR Deutsch Suomi Svenska Română 中文 Tiếng Việt Türkçe [![Cesim logotype Off-white](https://www.cesim.com/hubfs/Cesim%20logotype%20Off-white.svg)](https://www.cesim.com/) - Simulations - [What is a business simulation](https://www.cesim.com/what-is-a-business-simulation) - [Cesim Simulations Overview](https://www.cesim.com/simulations/overview) - [Compare Cesim Business Simulations](https://www.cesim.com/simulations/compare-business-simulations) - 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Simulation Learning in Hospitality Management Education | Register now](https://www.cesim.com/webinar-cesim-hospitality-q4-2025) # **What is a business simulation** A business simulation (also known as business simulator, business simulation game or company simulation game) is an [experiential learning](https://www.cesim.com/blog/experiential-learning-in-business-management-education) tool that allows participants to run a virtual company in a realistic, risk-free environment. It promotes the practical application of business knowledge and strategic thinking by immersing students in dynamic decision-making scenarios that span diverse areas such as [finance](https://www.cesim.com/simulations/banking-finance-simulations), [strategy](https://www.cesim.com/simulations/management-strategy), [operations](https://www.cesim.com/simulations/industry-specific-simulations), and [ESG](https://www.cesim.com/simulations/esg) (Environmental, Social, Governance). Modern business simulations increasingly integrate [AI-powered guidance](https://www.cesim.com/simulations/cesim-ai) to support participants with real-time feedback, explanations, and decision support, enhancing both the learning depth and the reflective process. Players develop and practice important soft skills like problem-solving, communication, teamwork, and leadership, while also learning more about performance indicators, market dynamics, and the effects of sustainable management techniques. Business simulations are an essential tool for contemporary education and corporate training because of their interactive and hands-on format, which increases engagement, improves retention, and fosters confidence. *Subtitles available (CC)* ### Reasons for using a business simulation ##### **🛠️ Put theory into practice** The dynamic environment of business simulations allows participants to **put theory into practice in a risk-free environment**. Through this kind of experimentation, participants can put theories to the test, see what works, and become innovative in their solutions to problems. ##### **👥 Boost participant engagement** Learning outcomes are highly dependent on the conditions and motivation for learning. Business simulations are hands-on learning tools that involve **competition between teams/participants**. The game-like nature of business simulations is proven to **engage participants** and develop **deep-learning skills** such as **collaboration**, **critical thinking** and **problem solving**. ##### **🤝 Practical environment for soft skills development** When playing a business simulation participants need to apply and practice important soft skills. These include but are not limited to **adaptability and reliability, teamwork**, **conflict resolution**, **critical thinking**, **communication**, and **problem solving**. ##### **🚀 Increase entrepreneurial and enterprise skills** Business simulations develop participants' **holistic thinking**, **commercial acumen**, **decision-making**, and **strategic skills**. ##### **🧠 Higher knowledge retention** **Experiential learning methodology** is the foundation of business simulations, and provides a **higher level of knowledge retention** compared to other instruction methods. ##### **🔄 Learning to fail and to cope with uncertainty** Failure is never pleasant, but learning from your own mistakes is key part of self-improvement. Business simulations provide a **risk-free environment where failure is safe**, yet the lessons learned are genuine and applicable in real life. Studies have shown that failure in a business simulation **actually improves learning**, as participants are more likely to reflect on and analyze their decisions when faced with suboptimal results. ##### **➰ Flexibility** **Online business simulations** can be applied in a **classroom, hybrid, or virtual format**. Participants can be from less than ten to thousands. The simulation content can be adjusted according to the target group, and facilitation can be handled by the organization's own resources or externally. ##### 🌍 Put ESG into action Integrating ESG (Environmental, Social, and Governance) decisions through simulations allows participants to experience the multifaceted impact of incorporating sustainable development goals into their strategic planning. Engaging in business simulations underscores the vital role of responsible management by seamlessly intertwining it with core strategy and operations, rather than isolating it as a separate policy. This experiential approach not only illustrates the importance of sustainable practices but also provides insights into balancing improved financial performance with delivering comprehensive value to all stakeholders. ##### 🤖 Enhance learning with AI-powered guidance GenAI-powered virtual assistants—such as [Cesim’s Tireless Teaching Assistant and AI Coach](https://www.cesim.com/simulations/cesim-ai) —empower both instructors and students to get the most out of simulation-based learning. Drawing on real-time, context-specific simulation data, these tools enhance teaching effectiveness and deepen student engagement. For instructors, the AI Teaching Assistant helps align the simulation with course learning objectives, analyze results, personalize feedback, and spark meaningful class discussions. For students, the AI Coach serves as a supportive guide, bridging the gap between simulation insights and their individual learning journey. Rather than providing direct solutions or strategies, it fosters growth and self-discovery by asking reflective questions and offering observations—encouraging learners to think critically and make their own decisions. #### **Why business simulations are great learning tools** #### **What participants say about business simulations** ### **Our business simulation portfolio** All simulations Management & Strategy Marketing Hospitality Banking & Finance Industry specific [![Cesim Global Challenge](https://www.cesim.com/hubfs/GC%20icon%202025.png "Cesim Global Challenge")](https://www.cesim.com/simulations/cesim-global-challenge-international-business-strategy-simulation-game) [Global Challenge](https://www.cesim.com/simulations/cesim-global-challenge-international-business-strategy-simulation-game) *Strategy & International Business Management* [![Cesim Service](https://www.cesim.com/hubfs/images/icon-onservice.svg "Cesim OnService")](https://www.cesim.com/simulations/cesim-service-small-service-business-management-simulation-game) [Service](https://www.cesim.com/simulations/cesim-service-small-service-business-management-simulation-game) *Small Service Business Management* [![Cesim Project](https://www.cesim.com/hubfs/images/icon-project.svg)](https://www.cesim.com/simulations/cesim-project-management-simulation) [Project](https://www.cesim.com/simulations/cesim-project-management-simulation) *Project Management* [![Cesim Firm icon](https://www.cesim.com/hubfs/images/icon-firm.svg)](https://www.cesim.com/simulations/cesim-firm-business-management-simulation-game) [Firm](https://www.cesim.com/simulations/cesim-firm-business-management-simulation-game) *General Business Management* [![Cesim Marketing icon](https://www.cesim.com/hubfs/images/icon-marketing.svg)](https://www.cesim.com/simulations/cesim-marketing-management-simulation-game) [Marketing](https://www.cesim.com/simulations/cesim-marketing-management-simulation-game) *Marketing Management* [![Cesim Hospitality icon](https://www.cesim.com/hubfs/images/icon-hospitality.svg)](https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game) [Hospitality](https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game) *Hotel & Restaurant Management* [![Cesim Bank icon](https://www.cesim.com/hubfs/images/icon-bank.svg)](https://www.cesim.com/simulations/cesim-bank-management-simulation-game) [Bank](https://www.cesim.com/simulations/cesim-bank-management-simulation-game) *Banking & Financial Services Management* [![Cesim Power icon](https://www.cesim.com/hubfs/images/icon-power.svg)](https://www.cesim.com/simulations/cesim-power-electric-utilities-simulation-game) [Power](https://www.cesim.com/simulations/cesim-power-electric-utilities-simulation-game) *Electric Utilities Management* [![Cesim Connect icon](https://www.cesim.com/hubfs/images/icon-connect.svg)](https://www.cesim.com/simulations/cesim-connect-telecom-operator-simulation-game) [Connect](https://www.cesim.com/simulations/cesim-connect-telecom-operator-simulation-game) *Telecom Operator Management* [![Cesim Retail icon](https://www.cesim.com/hubfs/images/icon-retail.svg)](https://www.cesim.com/simulations/cesim-retail-store-management-simulation-game) [Retail](https://www.cesim.com/simulations/cesim-retail-store-management-simulation-game) *Retail Store Management* [![Cesim Dealership](https://www.cesim.com/hubfs/images/icon-dealership.svg)](https://www.cesim.com/simulations/cesim-dealership) [Dealership](https://www.cesim.com/simulations/cesim-dealership) *Automotive Dealership Management* [![Cesim Invest](https://www.cesim.com/hubfs/Invest%20icon.svg)](https://www.cesim.com/simulations/cesim-invest) [Invest](https://www.cesim.com/simulations/cesim-invest) *Strategic Investment Management* [![Cesim Stocks](https://www.cesim.com/hubfs/Stocks%20icon.svg)](https://www.cesim.com/simulations/cesim-stocks) [Stocks](https://www.cesim.com/simulations/cesim-stocks) *Portfolio Management* [![Cesim Stocks](https://www.cesim.com/hubfs/Custom%20simulations%20icon.svg)](https://www.cesim.com/simulations/customized-business-simulations) [Custom Business Simulations](https://www.cesim.com/simulations/customized-business-simulations) [![Cesim Global Challenge](https://www.cesim.com/hubfs/images/icon-gc.svg "Cesim Global Challenge")](https://www.cesim.com/simulations/cesim-global-challenge-international-business-strategy-simulation-game) [Global Challenge](https://www.cesim.com/simulations/cesim-global-challenge-international-business-strategy-simulation-game) *Strategy & International Business Management* [![Cesim Service](https://www.cesim.com/hubfs/images/icon-onservice.svg "Cesim OnService")](https://www.cesim.com/simulations/cesim-service-small-service-business-management-simulation-game) [Service](https://www.cesim.com/simulations/cesim-service-small-service-business-management-simulation-game) *Small Service Business Management* [![Cesim Project](https://www.cesim.com/hubfs/images/icon-project.svg)](https://www.cesim.com/simulations/cesim-project-management-simulation) [Project](https://www.cesim.com/simulations/cesim-project-management-simulation) *Project Management* [![Cesim Firm icon](https://www.cesim.com/hubfs/images/icon-firm.svg)](https://www.cesim.com/simulations/cesim-firm-business-management-simulation-game) [Firm](https://www.cesim.com/simulations/cesim-firm-business-management-simulation-game) *General Business Management* [![Cesim Marketing icon](https://www.cesim.com/hubfs/images/icon-marketing.svg)](https://www.cesim.com/simulations/cesim-marketing-management-simulation-game) [Marketing](https://www.cesim.com/simulations/cesim-marketing-management-simulation-game) *Marketing Management* [![Cesim Retail icon](https://www.cesim.com/hubfs/images/icon-retail.svg)](https://www.cesim.com/simulations/cesim-retail-store-management-simulation-game) [Retail](https://www.cesim.com/simulations/cesim-retail-store-management-simulation-game) *Retail Store Management* [![Cesim Dealership](https://www.cesim.com/hubfs/images/icon-dealership.svg)](https://www.cesim.com/simulations/cesim-dealership) [Dealership](https://www.cesim.com/simulations/cesim-dealership) *Automotive Dealership & Business Management* [![Cesim Hospitality icon](https://www.cesim.com/hubfs/images/icon-hospitality.svg)](https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game) [Hospitality](https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game) *Hotel & Restaurant Management* [![Cesim Service](https://www.cesim.com/hubfs/images/icon-onservice.svg "Cesim OnService")](https://www.cesim.com/simulations/cesim-service-small-service-business-management-simulation-game) [Service](https://www.cesim.com/simulations/cesim-service-small-service-business-management-simulation-game) *Small Service Business Management* [![Cesim Bank icon](https://www.cesim.com/hubfs/images/icon-bank.svg)](https://www.cesim.com/simulations/cesim-bank-management-simulation-game) [Bank](https://www.cesim.com/simulations/cesim-bank-management-simulation-game) *Banking & Financial Services Management* [![Cesim Invest](https://www.cesim.com/hubfs/Invest%20icon.svg)](https://www.cesim.com/simulations/cesim-invest) [Invest](https://www.cesim.com/simulations/cesim-invest) *Strategic Investment Management* [![Cesim Stocks](https://www.cesim.com/hubfs/Stocks%20icon.svg)](https://www.cesim.com/simulations/cesim-stocks) [Stocks](https://www.cesim.com/simulations/cesim-stocks) *Portfolio Management* [![Cesim Hospitality icon](https://www.cesim.com/hubfs/images/icon-hospitality.svg)](https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game) [Hospitality](https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game) *Hotel & Restaurant Management* [![Cesim Bank icon](https://www.cesim.com/hubfs/images/icon-bank.svg)](https://www.cesim.com/simulations/cesim-bank-management-simulation-game) [Bank](https://www.cesim.com/simulations/cesim-bank-management-simulation-game) *Banking & Financial Services Management* [![Cesim Power icon](https://www.cesim.com/hubfs/images/icon-power.svg)](https://www.cesim.com/simulations/cesim-power-electric-utilities-simulation-game) [Power](https://www.cesim.com/simulations/cesim-power-electric-utilities-simulation-game) *Electric Utilities Management* [![Cesim Connect icon](https://www.cesim.com/hubfs/images/icon-connect.svg)](https://www.cesim.com/simulations/cesim-connect-telecom-operator-simulation-game) [Connect](https://www.cesim.com/simulations/cesim-connect-telecom-operator-simulation-game) *Telecom Operator Management* [![Cesim Retail icon](https://www.cesim.com/hubfs/images/icon-retail.svg)](https://www.cesim.com/simulations/cesim-retail-store-management-simulation-game) [Retail](https://www.cesim.com/simulations/cesim-retail-store-management-simulation-game) *Retail Store Management* [![Cesim Dealership](https://www.cesim.com/hubfs/images/icon-dealership.svg)](https://www.cesim.com/simulations/cesim-dealership) [Dealership](https://www.cesim.com/simulations/cesim-dealership) *Automotive Dealership & Business Management* ##### **Contact us:** Kalevankatu 16 00100 Helsinki, Finland [contact@cesim.com](mailto:contact@cesim.com) ##### **Sales inquiries:** (UK) [+44 2033185655](tel:+442033185655) (US) [+1 (866) 644 0518](tel:+18666440518) ##### **Simulations:** [Cesim Global Challenge](https://www.cesim.com/simulations/cesim-global-challenge-international-business-strategy-simulation-game) [Cesim Service](https://www.cesim.com/simulations/cesim-service-small-service-business-management-simulation-game)[Cesim Project](https://www.cesim.com/simulations/cesim-project-management-simulation) [Cesim Firm](https://www.cesim.com/simulations/cesim-firm-business-management-simulation-game) [Cesim Marketing](https://www.cesim.com/simulations/cesim-marketing-management-simulation-game) [Cesim Hospitality](https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game) [Cesim Bank](https://www.cesim.com/simulations/cesim-bank-management-simulation-game) [Cesim Power](https://www.cesim.com/simulations/cesim-power-electric-utilities-simulation-game) [Cesim Connect](https://www.cesim.com/simulations/cesim-telecom-operator-simulation-game) [Cesim Retail](https://www.cesim.com/simulations/cesim-retail-store-management-simulation-game) [Cesim Dealership](https://www.cesim.com/simulations/cesim-dealership) [Cesim Invest](https://www.cesim.com/simulations/cesim-invest) [Cesim Stocks](https://www.cesim.com/simulations/cesim-stocks) ##### **Subscribe to our blog:** ##### **Follow us:** [![LinkedIn](https://www.cesim.com/hubfs/images/social-icon-linkedin.svg)](https://linkedin.com/company/cesim) [![Twitter](https://www.cesim.com/hubfs/images/social-icon-twitter.svg)](https://twitter.com/cesimfinland) [![Facebook](https://www.cesim.com/hubfs/images/social-icon-facebook.svg)](https://facebook.com/cesimfinland) [![Instagram](https://www.cesim.com/hubfs/images/social-icon-instagram.svg)](https://instagram.com/cesimfinland) [![Youtube logo sqr](https://www.cesim.com/hubfs/images/social-icon-youtube.svg)](https://www.youtube.com/user/CesimFinland) [![Vimeo logo 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