Why Enterprises and Startups Collaborate
The relationship between enterprises and startups is often necessary for both to succeed—despite their seemingly opposed business views. Still, it’s complicated.
82% of surveyed execs at large companies said they can learn how to become a digital business from startups/entrepreneurs, and 50% believe they need to work with startups/entrepreneurs to become sufficiently innovative.
Survey respondents from enterprises expect the proportion of their revenues generated by collaborations with startups/entrepreneurs to rise from an average of 9% today to 20% in five years.
71% of execs at major companies said they are collaborating successfully with entrepreneurs, compared to 57% of entrepreneurs who agree.
78% of survey participants at large businesses said that working with entrepreneurs is “important” or “critical” to their own growth and innovation, but only 67% of entrepreneurs feel this way.
29% of entrepreneurs said large organizations lack the commitment needed to work together, compared to just 7% of execs at large enterprises who say this is true.
75% of survey respondents at big businesses describe themselves as sufficiently entrepreneurial, but 75% of startup leaders who worked at large companies said they left because they didn’t feel that they could be entrepreneurial there.
41% of execs at large organizations believe small, startup-styled businesses are committed to supporting their growth as they work together, but only 24% of entrepreneurs feel large enterprises are similarly committed to supporting the growth of smaller businesses.
46% of survey respondents at major corporations say their government makes it easier for large companies to collaborate with startups/entrepreneurs, but just 30% of entrepreneurs agree.
53% of execs at large organizations said accessing specific skills and talents is a top benefit of collaborating with startups/entrepreneurs, and 50% said the opportunity to enter new markets is a top benefit.
49% of entrepreneurs said getting access to a large enterprise’s distribution network and customer base is a top benefit of collaborating with these companies, while 45% cite the opportunity to serve as a supplier for these big organizations.