The purpose of this study was to bridge a gap in our understanding of the role business simulation games can play in the development of entrepreneurial capabilities in undergraduate students. While entrepreneurship education has come a long way from being a branch of business and management studies, to its current status as a core discipline in its own right, the debate on the pedagogy of entrepreneurship education continues. The best results in entrepreneurship education are achieved when students are exposed to action-oriented experiential learning that encourages problem-solving, creativity and peer evaluation. Game-based learning is an emerging pedagogy that brings together the evolving nature of young learners and experiential learning. Grounded in the theory of experiential learning and action research methodology, this study investigates how a particular business simulation game, SimVenture, develops not only students' business and management skills but also their entrepreneurial attitude and values. The findings suggest that the business simulation allowed students to face their limitations, overcome some of them and make significant progress in their learning. Using SimVenture improved students' appreciation of business in general and the challenges entrepreneurs have to face in running a business.