Startups and Corporations; a virtuous society
Large corporations have bet on startups and young companies as sources of innovation. And big questions have arisen like; What are the reasons for corporations to bet on these projects? Is it only in certain sectors? How do you build relationships with startups? What are the main problems faced in the process?
Corporations work with startups mainly to integrate new technologies and streamline processes, and at the same time, as a way to integrate new ideas or innovations of the so-called incrementals. This “synergy” is beginning in our country and there is enormous potential for the birth and consolidation of startups, as well as for supporting corporations. The main services that the corporation can offer to startups are linking with other different actors, entering the world of business relationships. Likewise, it also gives them access to environments and platforms to be able to test and validate products and services. Another no less important is the access of startups to professional technical support and mentoring by managers.
Corporate entrepreneurship is starting in our country, building and managing work with startups, relying on management or internal areas, seeking a balance between organizational autonomy and the development of startups.
Internally, corporations usually have a minimum organizational resource to be able to take advantage of the “internship” of a startup. And this is very important because, until now, investments in this type of project are usually low and unstable. Hence, I criticize it is to commit in both senses, from corporate to startup and vice versa. Other points in this relationship are the need for agreements and clauses that clearly define the rights of entrepreneurs, as well as certain powers for corporations.
A relevant aspect is the vision of the managers to be able to identify ventures that have potential and are aligned with the strategies of the corporation.
Likewise, some of the difficulties of corporations to work with startups are identifying ventures that are attractive to corporations.
This scheme of work is just beginning, but enormous potential is envisioned with a “win-win” approach. Where some of the challenges are at; stop seeing the participation of a startup as a “favor” that the corporation does to entrepreneurs and integrate it strategically into the vision of the company. The slowness and bureaucracy of the internal processes in the corporations, the lack of personnel prepared to work with startups-entrepreneurs, the understanding by middle managers, the lack of a budget according to the need and the understanding of their function and objective by top management.
This startup-corporate partnership has enormous potential in the regions, and in the very near future it will be a strategic tool for corporations in the world of innovation.