The spirit of entrepreneurship must be formed in an integrated process in learning so that commitment, responsibility and work ethic on the candidate of vocational high school graduates are effectively promoted. Learning teaching factory teaches students how to find problems, build prototypes, learn to make business plan, and learn to present their own solutions. The research objective is to assess the effectiveness of Teaching Factory implementation in improving the competence and skills of students in the field of entrepreneurship. The method used in this research is case study. Key informants were determined purposively in charge of teaching factory, students, and teachers who teach in productive subject. The results achieved in this study are: 1) culinary and hospitality units are the most active groups in producing products for teaching factory, 2) the role of entrepreneurial groups in each unit of production in order to increase productivity 3) students earn revenues of teaching factory and production unit get percentage of product or service sales, 3) the role of each production unit determines the level of teaching factory effectiveness. © Published under licence by IOP Publishing Ltd.
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