Building on the job demands-resources theory, this study aims to investigate how characteristics of entrepreneurship programs foster students’ study engagement and entrepreneurship competence. Longitudinal data were collected at three time points. A total of 154 Dutch students completed a questionnaire before, halfway, and at the end of an entrepreneurship program. The results of structural equation modelling demonstrated that program demands, such as a challenging learning environment and clear goals and standards, positively related to study engagement. In turn, study engagement was associated with entrepreneurship competence among students. Teacher-student relationships, as program resources, positively related to study engagement. However, the impact of student-student relationships on study engagement was not significant when compared to teacher-student relationships. This study contributes to entrepreneurship education research by providing empirical insights into the relationships between challenge demands, program resources, study engagement, and subsequent entrepreneurship competence. The findings also have practical implications for enhancing teaching effectiveness of entrepreneurship programs. •Program demands and resources positively related to students' study engagement and subsequent entrepreneurship competence.•A challenging learning environment can foster students' study engagement.•Clear goals and standards positively related to study engagement among students.•Compared with student-student relationships, teacher-student relationships are more essential in promoting study engagement.•Students who experienced high study engagement developed high entrepreneurship competence.