This story began with the idea of ​​Indonesian students studying in Rotterdam, the Netherlands, including Fadjar Notonagoro and Sumitro. They realized that Indonesia did not yet have a single economics college, forcing students to study abroad. Their vision led to the founding of the Krisnadwipayana College of Economics in Surabaya, founded by Dr. Ong Eng Djie, then Minister of Finance of the Republic of Indonesia. Although this college had to close after operating for a year and a half, it planted the seeds for the future development of economics education.

On January 1, 1954, the Surabaya Economic College Foundation (PTES) was officially established, which was then confirmed through a notarial deed by Mr. Drs. Liem Hie Hian on July 22, 1954.

The foundation brings together prominent figures from various fields, including government officials, business leaders, and community leaders. Its founders include Mas Goenadi Widjoasmoro (Head of the Surabaya Financial Inspection), Liem Djing Lioe (Agent of the Oei Tiong Ham Concern), Raden Mas Soeparto (Resident of Surabaya), and several other prominent figures.

PTES officially began its academic activities on September 15, 1954, with an opening ceremony held in the auditorium of the Faculty of Medicine, Universitas Airlangga. In this early period, lectures were held in several locations, including the Bahari Building (now Tunjungan Plaza), the Agrarian/BPN building, and borrowed rooms at the Faculty of Medicine Universitas Airlangga. The college initially offered only one department, Corporate Economics. In 1957, PTES established a significant collaboration with the Faculty of Economics, University of Indonesia in Jakarta, which paved the way for the development of the General Economics program.

Thanks to the persistent struggle led by R. Samadikoen, Soewondo, and Wilono, PTES reached a significant milestone on September 1, 1961, when it officially merged into the Faculty of Economics Universitas Airlangga through Ministerial Decree No. 31/1961. The faculty maintained its existing programs and added an Accounting major in 1963, with support from the University of Indonesia.

This era was marked by significant educational reform. In 1975, the faculty introduced its first non-degree program—the Business Administration Expert Education (PAAP). Major changes occurred in 1979 when the faculty switched from a package system to a Semester Credit System, significantly improving graduation rates. The names of departments were modernized, with General Economics becoming Development Studies and Business Economics becoming Management. The faculty continued to expand its programs, adding specialized programs in Taxation (1984/1985) and Marketing Management (1985/1986).

The Faculty underwent its first national accreditation in 1996, with Development Studies, Management, and Accounting initially receiving B accreditation. In 2000, both Accounting and Development Studies achieved A accreditation, reflecting the institution's commitment to academic excellence. This period was also marked by significant infrastructure development, including the construction of an extension building in 1996 and a Business Education Center in 2000–2001. The Faculty embraced technological advancements by establishing computer laboratories, internet facilities, and digital resources to support modern educational needs.