School-based enterprise (SBE) is a hands-on educational program in which students create and manage a business in their community. SBE programs address two general concerns about education today--lack of student motivation and the need for schools to teach students the skills to survive in and contribute to their communities. SBE makes the learning situation more relevant since it is based in the real world of work. Rural communities benefit as students create new jobs that contribute to economic revitalization. To start their own business, students must assess the community to determine what business would be viable, develop a business plan, find loans and financing, begin operations under adult supervision, and evaluate outcomes. Students often take a 2-year SBE core curriculum, which includes a course in small business management. REAL Enterprises, sister organizations in southeastern states that foster SBE programs, have found that projects run more smoothly if students start small, adequate teacher support is available, curriculum guidelines are established, ongoing adult supervision is provided, community support is secured, and supervisors and sponsors refrain from being overly helpful or from "rescuing" projects in trouble. This paper contains 14 references. Appendices summarize SBE program objectives, list "dos" and don'ts" for project success, and briefly describe 25 projects in North Carolina, South Carolina, and Georgia. (SV)