Reasons Why Corporates and Startups Should Collaborate

When a large organization faces downfall in the market, a startup business becomes a life savior for them. An organization who previously earned a gracious share in the market suddenly meets the market inconstancy then it is necessary for them to shake hand with a startup business.

Startup business may seem this collaboration as the golden opportunity to generate trustworthiness in the respective industry.

In my opinion, the purpose of this collaboration is similar to the Social Exchange Theory. The underlying concept of Social Exchange Theory is “give and take” rule or “cost and benefit” rule. This theory reveals that people are not independent, they are dependent on each other for example when the organization failed to accomplish their goals, they need to sort out the matter hence they approach startup businesses to remain in the market by sharing their name or reputation and in return, they also provide the infrastructure or other resources. Apart from it, startups and corporates can take the support of windows server VPN ports for smooth business operations.

Major Reasons for Collaboration

There are enormous and distinct reasons for collaboration, out of which few are as below,

  • Lack of Innovation or slow innovation

In my view, one of the fundamentals reasons for collaboration with startups is an inability to bring innovation to customers.  In this busy world, people need innovative and creative products, from technological products to home furniture.

Another point is that startup businesses bring innovation more radically as compared to corporate because corporate have internal barriers and liabilities that do not give them wings to fly comfortably in contrast with startups.

  • Entrepreneur for Handling Problem

Corporate have slow internal and external processes which sometimes make them one handed instead of two in terms of problem solving. However, collaborating with startups help corporates to approach entrepreneurs and problem solvers with the crown of creativeness.

  • Corporate’s Edge on Multiple Resources

Although startups have distinguished innovation ideas still, they become in deep thoughts when we talk about resources. Yes, startups do lack in manpower and to vanish these hurdles, startup collaborates with corporates and enjoys the leverage of using its assets and resources.


Overhead reasons support the social exchange theory that has a cost and benefit, as a primary concept. The collaboration is a win-win situation in which both the parties enjoy the shares and depend on each other abilities. I hope this article will help you to put different cases of different organizations and startups in the aforementioned reasons which extend your area of learning and understanding. Soon, we will post more valuable articles on a business domain so stay with us and keep sharing this information with others.