While most people consider being independent and self-sufficient to be important personal qualities that a small business entrepreneur should have, in today’s volatile economic environment, it is not possible for an entrepreneur to a lone warrior and expect to succeed. This is a common misconception that most entrepreneurs of small and medium business enterprises make while conducting the affairs of their businesses. In today’s global economy, it is not possible for a single entrepreneur to cater to all the needs of his target audience in the market and still stand apart from his/her competitors. It is imperative for entrepreneurs of small and medium scale businesses to enter into strategic partnership agreements or strategic alliances to enhance their competitive edge in the market.
Anura Perera, a renowned expert on strategic business partnerships and the secrets to their success explains most individual entrepreneurs and corporate enterprise refuse to talk to their competitors let alone enter into strategic partnerships with them. Many of these entrepreneurs and corporate enterprises even refuse to associate themselves with same social networking and business class groups as their competitors. This is an indication of weakness and fear that these entrepreneurs and corporate enterprises are not secure with their own proposition. For a competent entrepreneur or corporate enterprise, running into his/ her or its own competitors should not cause such an entrepreneur or corporate enterprise to become anxious. An entrepreneur of a small business enterprise operating and catering to the meets of a local market will have to face stiff competition from larger corporate players and may even find it difficult to stay afloat.
It is imperative such entrepreneurs to look at the bigger picture and enter into strategic partnership agreements with such corporate players. Such entrepreneurs need consider them as allies rather than enemies to gain the competitive edge in the today’s market environment. In the long-run such an entrepreneur can gain by leveraging with such corporate competitors. However, it is important for such entrepreneurs to do some research on their prospecting corporate partner before entering into any legal binding agreements. The strategic business partnership needs to be mutually beneficial for both parties to be effective. Moreover, such a strategic business partnership needs to have the approval of all the stakeholders whose interests the partnership agreement is likely to effect to avoid any possible future conflicts. Even the entrepreneur should not ignore the interests and power of the community his/her business enterprise caters to while entering into a strategic business partnership with a corporate enterprise.
Anura Perera emphasizes that corporate enterprises that create the fastest growth are aware that strategic business partnerships with promising and ambitious small business entrepreneurs is best way to get ahead of the competition in the market. Moreover, for entrepreneurs of small and medium business enterprises need confronting their fears and taking the initiative for enter into strategic business partnerships with such corporate enterprises in order to survive and strive in today’s market economy. Such strategic business partnerships can have mutual benefits for the corporate enterprises, small business entrepreneurs and their stakeholders to the arrangement.