Nowadays, more and more individuals world-wide, especially college students, are showing increasing interest in starting their own business, which leads to the rise of entrepreneurship and entrepreneurial education, especially in China. Entrepreneurial education and entrepreneurial competency are valued as two crucial elements in promoting enterprise performance, and they play a significant role in the successful development of small business. From the perspective of innovative cooperation between university and industry in modern society, this study aims to reveal the role of university-industry cooperation in developing undergraduate's entrepreneurial competency and help universities explore more effective and innovative approaches in cooperation with industries to foster more potential entrepreneurs among their students. In this study, interview and questionnaire will be adopted among randomly selected small business owners, administrators, students and entrepreneurs to collect some data with methods of Likert scale and regressions.