Keiretsu describes a mutually supportive business relationship, typically between a group of corporations with broad power and reach or between manufacturers, suppliers, and investors.
The term was used extensively in Japan after World War II, when strong banks invested in specific companies and encouraged them to supply discounted products and services to each other to promote mutual success.
WashingtonVC, an investment fund, deliberately invests in companies that will complement the firms already in its holdings, chairman and founder Michael Mann says. “We provide a variety of services to our small businesses from our in-house resources.
For instance, one of WashingtonVC has invested in a graphic design studio that provides graphics, copyright work, and marketing copy to all the other companies.
Another firm, which specializes in high-tech installations, has set up wireless networks and state-of-the-art Internet security systems for the entire group. A VoIP telecommunications firm provides that technology to all the companies in the venture capital portfolio.
Outside of the venture capital model, there are cooperative business associations in several industries where small companies band together to purchase in bulk and to provide education and training to their members. For more information, check out the National Cooperative Business Association.
Photo by rob_gonyea.
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