According to the Procurement Leaders survey, CEOs of startups often face high barriers while collaborating with large companies due to heavy and sometimes unnecessary bureaucracy. During the survey, The CEO of one telecommunications startup tells Procurement Leaders that when their company tried to work with one large multinational corporation (MNC), they found that the contract approval process would take approximately 10 weeks.
Large companies are attracted to collaborating with startups due to the new and unique advantages and qualities that they bring to the table. One of the major advantages is Agility. Due to the agile nature of startups, they can innovate quickly and provide solutions to large corporates, which would take much longer time and more money to develop in-house.
The heavy bureaucracy during the collaboration undermines the agility and defeats the purpose of the collaboration in the first place.