Joint Ventures have been the most visible entity in collaborative businesses in India. In what way they are advantageous in a typical business set-up? How can it turn disadvantageous?

A joint venture is a business opportunity that is undertaken by two or more people, organizations, or parties that still retain their distinctive identities. The goal of a joint venture is to pool specific resources from all entities engaged to accomplish a specific goal. Under the structure of a joint venture, every participant is responsible for the profits, the losses, and any costs which are associated with the project. At the same time, however, the venture will also become its own entity. That makes it separate from the business interests of all the participants. The advantages and disadvantages are listed below: Advantages: Expertise sharing at its best Better access to Resources of every nature Workable for short term periods Risk managed better, cost is shared Embraces flexibility Offers multiple exit strategies Disadvantages: Not always a flexible relationship Difficult to structure an agreement with full equality Can expose an internal expertise imbalance Prone to cultural clash May limit future outside current activities Exit problems may be tedious in certain cases