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Entrepreneurship is one of the solutions to reduce the number of unemployed graduates of vocational level. One way to establish entrepreneurial readiness of students with learning teaching factory. Collecting data using questionnaire in which the respondents is students of class XII Wood Construction Engineering Expertise State Vocational High School 1 Sidoarjo as many as 31 student’s. Data test analysis using SEM-PLS, obtained P 0,016 that it mean <0.05. It concluded there is a significant effect on the implementation of teaching factory learning on student readiness entrepreneurs with a percentage of 54.9%. Implementation of teaching factory learning in the Wood Construction Engineering Expertise State Vocational High School 1 Sidoarjo class XII considered good. This is based on: (a) the ability of student’s to receive order is very good (81.4%); (b) the ability of students to analyze orders is not good enough (30.4%); (c) the ability of students to declare order work readiness is very good (85.6%); (d) the ability of students to work on orders is good (55.4%); (e) the ability of students to perform quality control is not good enough (46.6%); and (f) the ability of students to deliver the order is

The Effect of Teaching Factory Learning Implementation on Student Entrepreneurial Readiness Wood Construction Engineering Expertise Competencies State Vocational High School 1 Sidoarjo