Entrepreneurship Development and Communication Skills

7.4.1.2.Disadvantages of Joint Venture

It also suffers from certain drawbacks, which are as follows:

1. The functioning of the business may be badly affected due to misunderstanding between the co-ventures.

2. In case of foreign ventures, it may be in a position to face a lot of legal restrictions.

3. Lack of co-ordination among co-ventures is another drawback of joint venture.

4. Conflicts among co-ventures due to unequal equity participation is a common feature of joint venture.