What is the potential Issue(s)/challenge(s) in Joint Venture PartnershipsWhat is the potential Issue(s)/challenge(s) in Joint Venture Partnerships

Generally,we need to understand what might be the potential issues when setting up a joint venture partnership. This might includes the following:

• Conflicts of interest if they are competitors
• Unable to delineate areas of responsibility
• Mistrust of each other
• Fear of loss of know-how
• Cultural barriers
• Different business practises
• Differing in ideas about pay systems and criteria of recruitments
• Strategic needs of the partners in terms of safety,autonomy and/control
• Disputes in profit sharing methodology,
• Non alignment on authority limit of each partner
• Dominance of one partner in the new entity
• Protection of minorities

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• Tax Incentives For The Venture Capital Industry
• Technical Summary Of IAS 31 Interests in Joint Ventures