This qualitative study examines the process of student learning in a small-business experiential internship programme that pairs highly qualified undergraduates with local small or start-up companies. The Cognitive Apprenticeship model developed by Collins et al (1991) was used to conceptualize students' reported experiences. The results revealed that the internship structure allowed students to acquire knowledge successfully from experts in the field, situate their learning in the environment of practice, and learn valuable professional and entrepreneurial skills not found in traditional classroom settings. Students reported an increase in self-efficacy and indicated that their interests in working in a small business were solidified or further enhanced. It is argued that these findings have important implications for researchers, small business owners and entrepreneurial and small business support initiatives in higher education. (Contains 1 figure and 1 note.)