Due to recent developments in Information and Communication Technology (ICT), the concept of Virtual Enterprise (VE) became viable as a means to enhance prospective business opportunities for Small and Medium-sized Manufacturing Companies (SMMCs) located in geographically dispersed areas. A VE is effectively a type of outsourcing that is similar to a strong strategic alliance between companies, and has therefore been globally adopted to fulfill customer demands in ever-competitive business environment. This paper first discusses the obstacles that hinder effective collaboration among SMMCs in Korea, and shows the possible benefits that can be obtained by sharing information among collaboration participants through a simulation study. In addition, this study suggests an idea for a security-enhanced collaboration system that helps in enhancing collaboration between companies. Based on these studies, this paper eventually aims to motivate and reassure potential partners who are hesitant to collaborate with others.