A joint venture (jv) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new projects or any other business activity.
A joint venture involves two or more businesses pooling their resources and expertise to achieve a particular goal. The risks and rewards of the enterprise are also shared.
The reasons behind forming a joint venture include business expansion, development of new products or moving into new markets, particularly overseas.
Your business may have strong potential for growth and you may have innovative ideas and products. However, a joint venture could give you:
- More Resources
- Greater Capacity
- Increased Technical Expertise
- Access To Established Markets And Distribution Channels Benefits
- 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.
- 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