From September 2009 onwards, a new business curriculum which focuses on three key business disciplines, namely management, accounting and finance, has been implemented in Hong Kong senior secondary schools. A new assessment guide has been also proposed in light of the new curriculum. Such business curriculum and assessment reform move in the direction of preparing pupils to be more adaptive to the fast-changing business society; an innovative school-based pedagogical design will definitely be needed. This paper examines and analyzes the nature of the existing Hong Kong business curriculum and assessment reform from a competence-based perspective, discusses the critical issues in the areas of curriculum design, assessment practices, teaching approaches and teacher development, and suggests innovations in these areas for enhancing pupil competence development in the context of Hong Kong senior secondary education. (Contains 3 tables and 1 figure.)