Disadvantages of Joint Ventures

The disadvantages of joint ventures include the following:

• The objectives of the venture are not always 100% clear
• There may be miscommunication between the partners
• Partners have different expectations in terms of the joint venture
• There is an imbalance between both parties in terms of their level of expertise and investment
• The partners have different cultures and management styles
• Leadership and support are not present from the outset of a joint venture
• Creating a joint venture can be more costly than a consortium
• Joint ventures are often short-lived