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PurposeThe aim of this paper is to conceptualise entrepreneurial capacity-building as an integrated approach within the international higher education sector. Whilst university–enterprise collaboration is recognised as being essential to promoting graduate employability and entrepreneurship, the lack of an integrated approach towards embedding entrepreneurship education and entrepreneurial capacity-building with an entrepreneurial skill and mind-set prevails in the higher education sector. With reference to the retail sector, increasingly competitive job markets and the need for entrepreneurial capacity-building place growing pressures on universities to nurture career-ready graduates with entrepreneurial acumen.Design/methodology/approachThe theoretical paper presents a rationale for embedding entrepreneurship education into university curricula and for promoting university–business collaboration. Secondly, it reviews the extent to which entrepreneurial capacity-building is institutionally embedded to foster graduate entrepreneurship, university–business collaboration and business incubation within one strategic framework. Finally, the paper proposes five propositions within a tripartite approach that can foster graduate entrepreneurs with entrepreneurial skills and mind-set, useful for existing enterprises and start-ups. The implications for these propositions are discussed.FindingsThe authors propose five propositions with a tripartite approach that can foster graduate entrepreneurs with entrepreneurial skill and mind-set, skills for creating enterprises and university–enterprise collaboration within one strategic framework.Practical implicationsIncreasingly competitive job markets and the need for entrepreneurial capacity-building place growing pressures on universities to nurture career-ready graduates with entrepreneurial acumen in social science (e.g. retail, business management and accountancy) and science (e.g. pharmacy, architecture and engineering) programmes centred within the tripartite approach.Originality/valueWhilst university–enterprise collaboration is recognised as being essential to promoting graduate employability and entrepreneurship, the tripartite integrated approach embeds entrepreneurship education and entrepreneurial capacity-building with an entrepreneurial skillset and mind-set in the international higher education sector.