The Small Business Forum
Joint Venture
- Joint venture is investment by two or more parties for a joint defined task.
- The funds may be in loan or equity, and may be in cash or kind.
- The joint venture partner contribution may be in cash or in kind.
- The investment is governed by a JV agreement.
- The venture has a specific period.
- Partners share costs and profits.
- Both parties may participate in management.
- Ends with the project.
- Joint ventures are common between local and foreign investors.
- While the foreign investor may gain in low cost of labour and raw materials, and market, the local partner gains in capital, technical skills and foreign market.