The document discusses the challenges of collaboration between higher education institutions (HEIs) and small- and medium-sized enterprises (SMEs). There are structural, goal, and process differences between HEIs and SMEs that can pose obstacles. SMEs have limited resources and are very time-constrained, with owner-managers handling multiple responsibilities. HEIs need to understand these realities of SMEs to facilitate collaboration. Building trust, simplifying bureaucracy, clarifying research, and establishing intellectual property agreements that benefit both parties can help address challenges and lead to mutually beneficial outcomes like commercialization of research.