JOINT VENTURE - BENEFITS AND RISKS
Businesses of any size can use joint ventures to strengthen long-term relationships or to collaborate on short-term projects.
A successful joint venture can offer:
access to new markets and distribution networks
increased capacity
sharing of risks and costs with a partner
access to greater resources, including specialised staff, technology and finance
A joint venture can also be very flexible. For example, a joint venture can have a limited life span and only cover part of what you do, thus limiting the commitment for both parties and the business' exposure.
Joint ventures are especially popular with businesses in the transport and travel industries that operate in different countries.
The risks of joint ventures