THE benefits of partnerships accrue not only to small and medium-sized enterprises (SMEs), but also to large organizations. When an SME is able to grow and become more sustainable, opportunities for the larger organization, such as expanding its market reach or building new capabilities, arise. In other words, it’s potentially a win-win situation for both parties involved. Large organizations derive many benefits from partnerships, but for SMEs, they can be the key to success.
Partnerships with SMEs are not a new concept, in fact they have been around for some time. What has changed is the way partnerships are structured and how they work. In the past, partnerships were often thought of as two companies coming together simply to share resources or to fill a particular gap in the market. However, modern partnerships are much more strategic and focused on creating long-term value for both parties involved.
There are several advantages to having partnerships with different outside organizations. First, it helps build trust and credibility with other businesses, which can be essential in winning new contracts or tenders. Second, it can help you access new markets and new customer bases that were otherwise inscrutable. Finally, partnerships can help you spread the risks and costs of new ventures or projects, making them more affordable and feasible.
When looking for a potential partner with these described advantages, there are similar factors and things that companies should keep in mind in their search for the right business partner. In addition to being reputable and having a good track record, they should also be able to provide the resources and expertise you need to achieve your goals. It is also important that they share the same values as your company in terms of business ethics and sustainability. Once you’ve found a partner who meets all of these criteria, only then is it time to start working on building a strong, mutually beneficial partnership.
Defining the scope of the partnership and what each party will bring is of the utmost importance in starting any business relationship. This includes setting clear goals, timelines and deliverables as well as established communication channels and protocols so that both parties can keep abreast of the latest developments. With this in mind, it is important to have a solid agreement in place that outlines the rights and responsibilities of each party, ensuring that both parties are protected should something go wrong.
So if you’re thinking about partnerships for your SME, don’t see it as a short-term solution, but rather a long-term investment that has the potential to transform your business.
As SMEs continue to play an important role in the economy of the Philippines, these partnerships have become key factors in their success. They provide jobs, support local communities and contribute to the country’s overall growth. In order to increase their chances of success, SMEs should explore collaborations and partnerships with other businesses, as it is through them that these businesses can expand their reach, increase their customer base, and improve their overall sustainability.
The business climate in the Philippines provides an environment conducive for partnerships to flourish, providing several channels and platforms that businesses can leverage effectively. Partnerships that are established and nurtured through local and international chamber organizations provide the perfect platform for small businesses to collaborate and grow.
A chamber of commerce is an organization of businesses that seek to promote their common interests while advancing the economic well-being of their community, region, state, or nation. These chambers create encouraging environments for business representatives to come together and develop relationships, find mutual interests and form partnerships, through various activities such as networking events and workshops; they host annual golf networking events and trade missions across the country for its members.
As the Philippines’ own government also recognizes the importance of partnerships with SMEs, it has put in place initiatives that provide businesses with the support they need to scale and grow. One of the main organizations in this endeavor is the Ministry of Commerce and Industry which offers various programs and services that help micro and SMEs to develop their businesses.
One of them is the Center for International Trade Expositions and Missions (Citem), which helps SMEs participate in international trade fairs, allowing them to present their products and services to a global audience – increasing their visibility and helping to generate more sales by planning and implementing trade shows and missions, and executing industry development programs for emerging export products and services.
Strategic partnerships as a whole have proven to be an effective marketing tool. With two brands collaborating to achieve the same goals and reach new target markets, partnership marketing has proven to be a profitable strategy that drives more sales. By collaborating with another organization, your brand has more access to ideas that match your company’s vision, expands your network with more referrals to potential new customers, and increases your overall brand awareness by associating your company with other established organizations.
Anne Los Baños is Head of Partnerships at First Circle.
