Commercial ventures are established by a group of proprietors whose main aim is to make profits and expend their business operations. This is mainly done by financing the current commercial operations and filling in the market gaps left by the current firms within specific market sections. In the process, the needs of the customers who may have been neglected are satisfied in the process of the commercial expansions. Partnerships are critical for economic expansions due to the fact that risks and costs are shared.

Partnerships are special corporate agreements between groups of investors. Kingdom first business associates are a classical example of partnership. The partners came together trying out their hands in different types of businesses. Through the special partnership, they are able to specialize. One could be an expert in finance and accounting matters while the other partner may have special skills in administration. Through the delegation and sharing of duties, costs are reduced. With specialty businesses are run very well.

Partnerships are formed for a number of reasons. Some of the partners could be seeking methods of specialization. Others could be seeking methods of costs reduction. In the process, they court other experts with certain type of expertise. This is then followed by a delegation of duties between the various partners. The directors could take up role of finance and accounting directors in pursuit of cost reduction. Some joint ventures may be established in the process. Separate operations can be run concurrently by a joint venture or a strategic alliance.

Financing of partnerships depends on the agreements between the partners. The active partners are actively involved in the running of different operations within the premise commercial or outside the premises. Financing is commonly done through the pooling of resources by the members of a partnership. Each may be asked to contribute a certain amount of money. The returns from the different operations are shared proportional to the ratio of contribution. Expenses may be ignored or alternatively be shared according to the ration of contribution too.

Partners venture into an area of specialization. Plant specialists, designers, electrical and mechanical engineers tend to venture into manufacturing industries where machines have to be assembled. They also venture into processing industries since they have what it takes to undertake such operations. The accountants, lawyers and financial specialists tend to venture into the service industry since this is where their skills are needed.

Partnership regulations differ from one country to another. There are international regulations that guide the cross border partnerships and especially those on a multilateral level. These regulations are then implemented under different local conditions to suit the local business conditions.

The government may give the local investors some incentives. The incentives are aimed at boosting the local commercial productivity. Some commercial operations may be tax-exempt for some time. This gives the businesses some time to adapt to the business environment. In the process, the initial losses being made are not taxed.

As a way of promoting the local business environment, the government may get into partnership with some of the businesses. For instance, in running of public affairs, the government may contract a private partnership in developing of a project. The private partner is allowed to recover all the expenses by taking up a part of returns from such projects or some time before handing over to the government.