Entrepreneurs form strategic alliances for several reasons:
1. Resource Sharing: Small businesses often lack the resources that large corporations have. By forming an alliance, they can share technological expertise, distribution channels, and financial resources. 2. Market Access: Alliances can provide access to new markets. For example, a local company can form an alliance with a foreign firm to enter international markets. 3. Risk Mitigation: Sharing the risks associated with new ventures can be a significant advantage. This can include sharing the costs and risks of research and development. 4. Competitive Advantage: By pooling resources and expertise, companies can create products or services that are more competitive in the market.