Legal practitioner and global advisor Dr. Jeremy Levitt has visited 37 countries around the world in providing advisory services to international institutions and non-governmental organizations. As an entrepreneur, Jeremy Levitt founded The Levitt Group, LLC., where he built joint venture partnerships with retail concessionaires.
A joint venture partnership represents a business relationship between two entities who agree to collaborate to pursue a particular project. Forming this contractual relationship has certain benefits, such as:
Shared resources - Business entities lacking in funding or human capital will find that entering into a joint venture partnership supplements these scarce resources. Two companies, each with their individual assets, can combine both human and capital resources to fulfill their shared goals.
Flexibility - Partners in joint venture agreements are bound by temporary contracts, which dissolve upon the completion of the project or an agreed-upon date. Joint venture partnerships need not establish a new business entity, and thereby allow each company to resume its independent operations at the end of the contract.
Shared business risk - In joint venture partnerships, financial risk is significantly lower since each company’s contribution has been diluted. With project investments distributed among partners, the risk of a given enterprise becomes less imposing.