Building connections in Latin America
by Alice Arandia
I’ve spent the last week in Bolivia, immersed in the Latin business world. After just a few days, I feel energized and inspired by the go-getter attitude here. It has certainly been a jam-packed week though, at a non-stop pace.
I came here with a detailed task list, and a list of scheduled meetings, but yet again I forgot to factor into my plans just how long meetings can run on, and include enough time for the social aspect of business here with long business lunches and dinners.
Latin American countries are renowned for having relationship-based, collective cultures. But it’s not until you are in the mix of it all here that you really appreciate how influential networking and building relationships are in business, and the extent to which you need to factor this into your planning. Even though I have worked in the region for years, I still haven’t quite hacked how to fit in everything I want to do in just one week.
If you aren’t willing to invest time in building relationships, you are unlikely to acquire the trust and confidence a potential client requires to move forward with business negotiations. This, as we have experienced this week, means meetings can run on from a scheduled 1 hour to 4 hours and more, so plans have to be adjusted. It also means leaving time for social lunches where, as we have found this week, you are introduced to the family, and invest time in general chat before ever talking business. And lunches aren’t quick sandwiches either. They are long relaxed meals. All very enjoyable, but pressure builds up if you start to stress about how much you had hoped to fit into the day, before taking all this into account.
Societies are often characterized by whether they are individualistic or collective (in simple terms “I” v “we”). According to Hofstede’s Country Comparison Insights scale (2022), Bolivia has a low Individualism score of 10 (out of 100) – meaning it is predominantly a collective society; cohesive teams, long-term business relationships, and group membership are usually key to success in the society. In contrast, the UK has a high score of 89 – meaning it is predominantly an individualistic society; individual accountability, detailed planning, and decisive actions are therefore usually key to success.
It is normal to have a preference for an individualistic or collective orientation in business, based on what is your “norm”, influenced by your own cultural background. I have worked in both collective and individualistic cultures long enough that I see pros and cons in both, but I am also aware of the importance of adapting my business strategy according to the culture I am in.
If someone has only ever worked in a culture with predominantly individualistic traits it can be challenging to function effectively in a highly collective culture. Vice versa someone from a collective cultural background may well struggle to succeed in an individualistic business environment.
As we gather knowledge and learn about different cultural traits, we can usually adapt our behaviours, and see things from different perspectives. That takes time though and as we all know time usually costs money in business!
If you are interested in growing your business in this region, we can save you time and costly mistakes by facilitating the process of doing business in Latin America. We already have established relationships with local partners and clients and can give you access to markets a lot quicker. We are very familiar with both UK and LATAM business cultures and work with our clients to facilitate their business growth in new markets as quickly and effectively as possible.
Today, I move on to Colombia, a country I have never been to and am excited to visit. I know that there are a lot of opportunities there to be explored, in a wide range of sectors, and am really looking forward to meeting potential clients, and learning more about the market.
If you are interested in exploring opportunities in Latin America or UK, please get in touch with us.
