Joint ventures offer a unique opportunity for businesses to share both the risks and rewards of new endeavors. By pooling resources, expertise, and capital, companies can tackle projects that might be too risky or resource-intensive to pursue alone. This risk-sharing aspect is particularly valuable when entering new markets or developing cutting-edge technologies. For instance, two pharmaceutical companies might form a joint venture to develop a new drug, sharing the substantial R&D costs and regulatory hurdles. Joint ventures also provide a level of flexibility, allowing companies to collaborate on specific projects without fully merging their operations. This approach can lead to innovation and growth while minimizing potential downsides for each individual company.