Joint Venture means an association between two or parties for particular project. It can between any 2 more persons including an individual, partnership, company any form of business. Hence a proprietorship firm can enter into joint venture with the Private Limited Company. There are many benefits of joint venture as listed below.
- To enter into new market: If any person wants to enter into new market, new place or new product then there are some risk that whether such new market will accept the new entrant or not. To decrease such risk joint venture is the best option.
- To reduce the risk: By entering into the joint venture the risk of business will be shared between two people.
- Innovation and technology: To keep the product updated with latest technologies one can enter into joint venture with that person.
- Brand name: To take an advantage of the brand name and goodwill, one can enter into joint venture. It will help to reduce the competition.