The study argues that the educational needs of engineering students for entrepreneurship and managerial education are specific and evolving over time toward a set of skills and knowledge needed in digital and dynamic world. Existing research largely ignored the distinct and evolving nature of these educational needs and their implications for entrepreneurship and managerial education of engineering students. Using design thinking and teaching model literature, we proposed teaching model framework and derived propositions from conceptual arguments to address these educational needs effectively. The proposed conceptual teaching model framework elaborates on the incorporation of cognitive acts of design in various aspects at ontological, didactical, and contextual levels. The framework views education as a process of co-construction, centered on students, where the role of the teacher is similar to that of a coach. Students work in teams and practice the cognitive acts of design that lead to the development of interpersonal, entrepreneurial, and managerial skills. For this purpose, open-ended questioning, real-life customer problems, design thinking methodology, and lean methodology are proposed as effective content and pedagogies to promote the entrepreneurial behaviors required in the current industrial scenario.