| | JUNE 2025 9However, due to a lack of technology and access to talents (they could not compete with MNCs on pay and could not compete with startups on growth prospects), their adapting to changes does not necessarily yield the best outcome. With the potent technology that many startups have, SMEs could be great initial partners to kick-start revenue generation through market access. Lucrative collaborations may result that could catapult both startups and SMEs to higher growth trajectories. Not Always a Walk in the ParkWhile synergizing SMEs' efforts to harness the growth potential of startups may sound promising, there are inherent conflicts of interest that need managing. For example, startups may outgrow the initial foray to access markets where successful collaboration leading to revenue sharing could limit the growth of startups. When such a situation occurs, it is important for SMEs and startups to reassess their collaboration models for a more sustainable symbiotic relationship. Sometimes, this may be to M&A; sometimes, it may be a division of market segments and perhaps at other times, it is the ending of collaborative relationships that have outlived their usefulness. Regardless, the initial collaborations should have made everyone better off than not. The Importance of EnablersVenture capital firms (VCs) could play the role of enablers. Both the relationship with SMEs and startups could originate from them, and they are best placed to be an intermediary to seek out win-win solutions for the collaborators. Of course, it means a lot of efforts need to be put in place. However, the potential payoffs make it worthwhile for the VCs to put in the efforts; after all, management fees could be better justified through tangible value-adding work done in an attempt to improve overall fund performances. These SMEs could be tapped for a strong, potent driving force of growth that could accelerate innovation pursuits and help startups get through the dreaded `Valley of Death'
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