India has immense entrepreneurial potential that continues to remain underleveraged. While finance is one element to build a dynamic biosphere of entrepreneurship, the Covid crisis has brought unprecedented urgency to reach and support businesses and create a comprehensive, integrated policy to promote skill development and liquidity. Hence the importance of strategic alliances has gained importance to mitigate various risks attached to small businesses.
Strategic alliances are partnerships between two organizations by way of a partial or full acquisition through the exchange of equity between the two. Why this is required:
- It is critical to the success of a core business goal or objective
- It is critical to the development or maintenance of a core competency or other source of competitive advantage
- Blocks a competitive threat
- Creates or maintains strategic choices for the firm
- It mitigates a significant risk to the business