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PurposeThe purpose of this paper is to design and develop a business dynamics model in entrepreneurial orientation for employees (EOE).Design/methodology/approachThe mental model uses the casual loops, stock and flow diagrams in the business dynamics model. Hiring rate, Quit rate, Skill rate, Skill growth rate, EOE skill inventory rate, Performance rate etc. were defined and used with EOE metrics governing the model. VENSIM software package was used to simulate and validate the model using sensitivity analysis. The case study method was used to experiment a pre/post EOE training intervention with employees in an ITES organisation in India. Using a validated EOE questionnaire, data were captured from employees in an ITES organisation in Chennai, for validation of business dynamics model.FindingsThe time frame for imparting initial EOE training and retraining time after EOE training were simulated and results were summarised.Research limitations/implicationsFuture researchers can extend this work and apply in other industries and geographies also. Any organisation can customise and utilise the business dynamics EOE model as per their requirementsPractical implicationsThe model facilitates the measurement of both individual employee performance as well as organisational performance. The EOE business dynamics model contributes to the development of two indices namely entrepreneurial orientation for employees index (EOEI) and organisational performance index (OPI). The policy planners, human resource strategists, management consultants can utilise the business dynamics EOE model for effective decision making, budgetary allocations towards training initiatives and so on.Originality/valueThe model is a novel and first of its kind using business dynamics in entrepreneurial orientation for employees. The human resource planners can use this model for forecasting the man power needs as well as skill development, employee empowerment and organisational development.