Duke of York's challenge to tomorrow's entrepreneurs at Smethwick school visit

But Prince Andrew also admitted the Royal Family is 'not so good when it comes to enterprise' as he spoke to hundreds of students at Smethwick's Shireland Collegiate Academy.

The Duke toured the school and observed 11 and 12-year-olds as they learned about slavery and contributed to classwork on laptop computers.

He praised the Waterloo Road school, which has 1,160 pupils, as 'exceptional' and told pupils about his Inspiring Digital Enterprise Award (Idea), which is backed by celebrities including Will.i.am.

"Idea may well find a good home here," he told students in the 400-seat theatre that opened at the beginning of term. "Members of my family are very good at presenting prizes, unveiling plaques and giving out awards.

"We are not so good when it comes to digital, not so good when it comes to enterprise."

But the Prince said his experience at school, in the Royal Navy and working to develop British business had made it clear to him of the need to 'engage more and invest more in young people's skills'.

"In the 21st century the revolution is going to on around us with the number of new devices we can now use that we can put in our pockets.

"There used to be a simple thing called a telephone. Now it can run your life.

"Young people are going to have to take up the challenge.

"You have to maximise your potential. Idea is about inspiring young people to make more of their lives than sitting in the classroom.

"Employers are looking for all sorts of skills, not just GCSE or A-Level results.

"Take this opportunity because it may benefit not only your life but the lives of people around you and the rest of the world.

"Doing it conventionally is not the answer."

Shireland executive principal Sir Mark Grundy told pupils: "One hundred years ago this town was the hub of industry for the country.

"People who shaped the world grew up in Smethwick.

"Wouldn't it be great if we could be the next tranche of people to shape the world."

The Duke is patron of Nominet Trust which funds ventures that use digital technology.

The Idea initiative looks to help more than one million 14-25 year-olds to develop their digital skills and business ideas over the next five years.

It has already secured the backing of eight of the biggest names from the world of technology, business, education and finance, including Barclays, Microsoft, Telefonica (O2), Mozilla, KPMG, Salesforce.com, Silicon Valley Bank and the University of Huddersfield.

Shireland's assistant principal Kirsty Tonks added, "It is the perfect time for us to take our students to the next level of supporting them in accessing careers in the world of digital business.

"There are so many opportunities for our students to carve out successful careers that something such as Idea is the perfect vehicle with which to do this."

The new performance block incorporates a professional theatre with specialised dance, drama and music facilities.

There are also film and recording studios and a physical education base and sports hall.

The new building also has an 'immersive space' with projectors that put images on three out of four walls and can be enhanced with sound and even smells.

Pupils can be 'immersed' in an experience such as the Blitz, volcanic eruption or a Dubai cityscape.

Yesterday pupils were using Google Earth to learn about the cities affected in the Second World War and were able to see the distance between their school and some of the major battle grounds of the conflict.

For more information about Idea go to www.onemillionyoungideas.co.uk