Entrepreneurship - A Partnership Advantage
Partnership is when more than two people come together for the sole purpose of exploiting a business opportunity.
It began in pre-historic days when group of hunters came together to hunt down big and fierce animals like mammoth. Partnerships are embraced when a single individual cannot gainfully take on a business venture.
In the 21st century, there are many colourations of partnerships at people's disposals depending on the level and sophistication of the business at hand. One thing is quite peculiar with the formation of partnerships, it gives birth to an entity bigger and greater than those that formed it.
Here are some of the advantages of accruable from partnerships-
Partnership being a pool of different people coming together, it has the greatest possibility of the partners pooling small amounts of money together to form a formidable large sum of funds. Due to the small nature of funds coming from each partner, each of them may not feel any burden in releasing the funds.
Partnerships offer the group of investors a limited liability as only the funds invested are at risk. Their personal properties and other businesses are not part of the new business venture. And thus safeguarded by law.
The different partners are assigned different roles and job portfolios in the management of the partnership. Assigning the partners different offices forms yet another pool of ideas. Due to multiple memberships, each person offers his services to the group to the best of his knowledge. This positions the group in an advantaged position to grab many business opportunities.
As the partnership has a large pool of funds to do business with, they can do large volume of business turnover than single persons. Low gain margin with large funds accounts for the quantum net profits recorded by large organizations. Partnerships enjoy this advantage extensively.
The laws establishing partnerships are rigid, thus its dissolution is not flexible. Thus it helps people achieve their aims and also learn to do business on a long term status. It helps people to learn how to become a team player.
With partnerships, much could be achieved with little effort. It has an advantage of leveraging on many opportunities. It is available to all forms of businesses, age and sex.