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Joint venture is a type of business agreement where two organisations associate together for obtaining mutual benefits and profits. The organisations share risks and profits of the business apart from resources and finance. Here are some of the benefits of joint venture:
1. The available resources and the corresponding operating activities of the business are pooled when a joint venture is formed. It helps in growth of the business.
2. This association helps in expansion of business by expanding the geographical reach which helps reach new markets.
3. By forming a joint venture, companies get access to latest technologies with minimum investment.
4. In a joint venture, the technical knowhow is shared between companies which leads to innovation in product
5. The cost of production is reduced as raw materials are available in plenty.
A public private partnership is where all the risks of business are evenly distributed. In such a partnership the investor risk is less. Here are some benefits of PPP:
1. Risk sharing is reduced as it gets shared with the public
2. By sharing tasks and responsibility the project gets finished faster.