The time and attention of their entrepreneurial management is often diverted to finding and negotiating financing instead of developing markets and distribution systems'¦. The continual need of small companies for capital also limits their maneuverability. "Their marketing and distribution channels are frequently inadequate for getting their innovative products and services to an international marketplace. "Increasing globalization '¦ makes it difficult for small entrepreneurial companies to act alone effectively," wrote Botkin and Matthews. But while their small size enables them to evade the lumbering bureaucracies that hamper the actions of all but the most progressive larger companies, small companies are also limited by certain realities that can be easily addressed by big firms, and these impediments are often emphasized if the small firm hopes to establish a presence beyond its domestic borders. Well-managed smaller companies have long proven themselves to be very adept at anticipating market trends, capitalizing on new technologies, and using their lean structures to outpace larger companies. Partnerships of this sort often cross industry boundaries as Myron Gould explained in Direct Marketing, "Partnerships can be formed in the profit and nonprofit sectors, in the same or different industries, within different divisions of the same company, and in similar market segments/demographics in non-competitive industries." This is especially true in the biotechnology sector and in other industrial sectors characterized by rapid change and innovation. Small but growing companies can offer mature partners access to new customers, innovative products and management practices, and opportunities to bask in the glow of the small business's innovative, contemporary image. Alliances between large companies are still more prevalent, and many large firms continue to prefer to simply swallow up smaller enterprises via acquisition, but analysts and consultants alike contend that growing numbers of large companies are recognizing the benefits that can accrue from establishing partnerships with nimble, entrepreneurial firms. The 1990s saw a general increase in business partnerships between small and large companies.
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