Love not war wins for small businesses and large companies

Imagine a world where David and Goliath are best buds. Well it's becoming reality more frequently in the business world.

Boston Beer Co., maker of Sam Adams, mentors and lends money to small craft brewers. It hopes their sales will grow and take grocery store shelf space from brands like Budweiser, Miller and Coors.

"The best way for us to grow at Sam Adams is by having more craft beers out there," Boston Beer Chairman Jim Koch says.

Instead of feeling threatened and trying to crush smaller rivals that could take revenue from them, corporations like Microsoft Corp., Boston Beer and General Mills Inc. are mentoring and loaning money to smaller companies. It's an arrangement that has benefits for both sides.

"They're not trying to take away the competitive advantage of small businesses but trying to make it work for them," says Leonard Greenhalgh, a management professor at Dartmouth College's Tuck School of Business.

Executives at big corporations are starting to realize they can learn from younger and smaller competitors, according to a survey by Business Performance Innovation Network, a professional networking organization. More than half the executives surveyed said large companies can learn from smaller competitors about focusing on and listening to what customers say they need. A third said large companies can learn about being willing to fail and take nontraditional approaches from smaller rivals.

Here's a look at three mentoring programs:

One company's story: Roc Brewing Co. got a $10,000 loan from Boston Beer in 2011 to buy a machine to wash beer tanks. Since then the Rochester, N.Y.-based company has periodically spoken with Boston Beer employees and gotten help with marketing, purchasing, networking and legal matters, Roc owner Chris Spinelli says. He has also consulted with chairman Koch about expanding Roc Brewing's production, and Boston Beer collaborated with Roc on a beer that sold for a limited time two years ago.

Results: The relationship has brought Roc Brewing publicity, and in turn, more customers. Three­Ninety Bock, the beer Roc Brewing and Boston Beer coproduced, was mentioned in blogs and websites about craft beers. The relationship has also kept Boston Beer in touch with the latest trends in craft brewing, Koch says.

How to participate: Learn more and apply at: http://tinyurl.com/nzqgalc

Program: Microsoft Ventures

Two companies' stories: Slope and CreativeWorx, both software makers get work space, technical advice and feedback from Microsoft employees. The company has given the start-ups $25,000 each.

Microsoft is interested in Slope's project because it builds on the idea behind the company's OneDrive, which stores files online, says Mukund Mohan, Microsoft Ventures' director. Entrepreneurs like Bloom are often aware of ways to improve software because they use the products, Mohan says. CreativeWorx's software performs some of the functions of Microsoft's Dynamics business management program.

Results: Being in Microsoft Ventures has helped Slope and CreativeWorx accelerate product development. Slope found it easier to recruit employees with Microsoft's help. CreativeWorx expects to raise investor money by being in the program.

How to participate: Learn more and apply at: www.microsoftventures.com

Program: General Mills Ventures

One company's story: Keith Lauver took part in a mentorship program at General Mills last year, learning about marketing and product development.

General Mills hopes to learn from smaller competitors how to develop and market products faster, says Meredith Schwarz, General Mills Ventures' manager.

Results: Lauver went on the road in a recreational vehicle to visit retailers and tell his company's story. He spoke to an estimated 5,000 shoppers and sold thousands of packages. The conversations encouraged him to add products, including side dishes.

How to participate: Companies can participate in the General Mills program after joining a network of companies run by CircleUp, which operates a website to help companies raise capital. Learn more at: www.circleup.com