Description of how to do business in the tech-heavy areas of the world

1. This presentation is made possible by the support of the American People through the United States Agency
for International Development (USAID). The contents of this presentation are the sole responsibility of Rick
Rasmussen and do not necessarily reflect the views of USAID or the United States Government.
Global Business Cultures

2. Going Global
• Trust is an essential element
• Each country has its own profile
• Learn to navigate local business practices
• Benefits:
– Business expansion beyond local borders
– Adopting local customs allows increased acceptance
– Understanding systems reduces fraud and IP issues
• Pitfalls:
– Legislative and regulatory concerns
– Cultural nuances – open and closed systems
– Protocols of communication and business

3. Global Business Business Clusters
• North
America
• Europe
• Asia
• LATAM
• MENA
• CIS
• Australia,
NZ

4. US Regional Dialects
Each conducting business differently

5. Regional Clusters

6. Doing Business in Silicon Valley
• Meritocracy
• Open business culture and full startup
ecosystem
– Accelerators
– Service Providers
– Universities
– Angels, Angel Networks, Micro VCs, Venture Capital
• Embraces startups and contains all the
elements to help them succeed
• Huge number of networking events, meetups,
pitch contests, hackathons
– Get out of the building

7. Doing Business in New York
• Great pride in being the “center of
the universe”
– Financial capital, cultural and media
center
– Not looking for help from the outside
because they have it all
• Hard working, hard driving, Type A
personalities
• Historically a banker mentality but
beginning to understand startups
• Act confident, be tough and
become respected

8. Doing Business in Los Angeles
• Culture grounded by
Hollywood mentality
• Strong culture in media,
international distribution
and military/aircraft
• Watch for insincerity and
phony-ness

9. Canada
• Top entrepreneurial hubs
– Toronto, Vancouver, Waterloo
• US and Canada have similar business philosophies
– Friendly, generally trusting, direct
– Meritocracy over family and history
– Welcoming of outsiders
– Best product or solution generally gets the deal
• North-south cultural similarities
– Atlantic Canada – Boston
– Toronto – NYC
– Calgary – Texas
– Vancouver – California, Oregon, Washington

10. Europe
• London
• Continental Europe
– Germany
– France
– Scandinavia
– Italy, Spain, Portugal
– Eastern Europe

11. London
• Closest business partner to
US
• Business attire is stylish and
trendy
• Bond over a pint – or even
tea
• Don’t discuss deals with
meals
• Pace of business moves
slower than US
Resources:
London Entrepreneurial Exchange
Old Street in Shoreditch – “Silicon Roundabout”

12. London
• London does not sleep.
People on the move.
• Culture – subtlety and tact
• Londoners are proper
• Brits appreciate classic wry
British humor
• Communication style –
courteous, proper
Resources:
London Entrepreneurial Exchange
Old Street in Shoreditch – “Silicon Roundabout”

13. Paris
• Don’t plan business trips from
July-Sept
– Everyone is on congé
• Don’t expect service at a snap –
exaggerated formality.
• Begin with using “vous”
• Less direct than British - subtlety
and tact
• Be formal in attire & put on your
best behavior
• Talk pleasantries (know what the
latest strike or protest is!)

14. Paris 2
• The French are very well
informed about news, culture,
arts
• A few meals (usually lunch)
before business decisions are
made
• Men always pick up the tab for
the meal (Je vous invite)
• Where you went to school in
Paris has caché
Resources:
Silicon Sentier, LeCamping, HEC Paris Incubator

15. Berlin
• Hip, trendy, great energy.
• Berliners are outgoing
• Talk pleasantries first before
business
• Good for entrepreneurs –
bootstrapping mentality (more
so than London or Moscow)
• Frankness is evident
• High on diversity, international
• English is quite common

16. Berlin 2
• More central in location in
Europe so accessible to both
Western and Eastern Europe
• Little less formal (less dressy
than London or Paris) – but ok
to be formal
• Sticklers for manners
• Avoid history discussions!
Resources:
Rocket Internet, Berlin Web Week,
Next Conference

17. Asia
• Japan
• China
• India
• Four Asian Tigers
– Korea
– Taiwan
– Singapore
– Hong Kong

18. Tokyo
• Very meticulous culture
• Business card etiquette
– It’s like receiving a precious gift
• Gift giving as token of respect
is appreciated
• English is not common – but
subway signs are marked in
English and Kanji
• NO TIPPING (it is an insult,
sign of underservice)

19. Tokyo 2
• Business is conducted over 7
meetings
– First meeting is just an
interaction with no deliverables
– No business discussed before
the 5th meeting
• The rest of business
interaction is not as formal
• Bow back but not as deeply
• Each is a step forward to the
next
• Bonding over drinks happens

20. Taipei, Taiwan
• Many family-owned businesses
– decision makers are the
heads of families
• Management style is more
authoritarian
• Age is venerated as in
traditional Chinese culture, so it
is a good idea to send senior-
most members of your team
• Building trust takes time
– Trust, courtesy, respect, patience
• Same business card protocol as
China

21. Shanghai
• Much more open than other
parts of China
• Chinese business formalities
prevail
• Receiving business cards
• Keep your visa documents
with you at all times
• Guanxi reflects your
personal networks

22. Shanghai 2
• People are relatively up front in
business
• Be aware of local holidays;
avoid August
• Business is formal – be
punctual
• Lot of business people talk
general talk (sports, family and
no politics)
• No Dutch treat on
dinners/entertaining

23. Bangalore, India
• Known as the Silicon Valley of
India
• Many often only think of out-
sourcing in India
• Moving from cost-conscious to
value-conscious consumers - great
for global market expansion
• Consumer market is high in
potential
• Formal business etiquette –
“Namaskara”
• Punctuality expected but
cancellations can occur
• Trust and relationship is essential
• Hierarchical business relationships

24. LATAM
• Mexico
• Central and South America
• Brazil

25. São Paulo, Brazil
• Financial center; hub of
business activity
• International in flavor
– Expect more English to be
spoken here
• Brazilian culture is less
formal
– Infamous for being late to
meetings
• Sao Paulo business people
are more punctual than
elsewhere in Brazil

26. São Paulo, Brazil
• Start with pleasantries before
diving into business talk
• Meetings can run long so plan
accordingly in your schedule
• Brazilians like to wine and be
wined
Resources:
Brazil Innovators, Endeavor,
Aceleradora

27. Santiago, Chile
• Chile has a great atmosphere
for startups
• Entrepreneur community
strong - Startup Chile.
• Dress & personal image
important in Chile
• International outlook – some
English; Spanish gets you
farther
• Business always begins with
relationship building
• Once you get relationship
going, Chileans are quite
demonstrative

28. Santiago, Chile
• Personal networks – “Pitutos”
• Business is hierarchical
• Be formal and respectful
(“Usted”)
• Chileans use both father &
mother surnames – father’s
comes first, address them by
this name.
• Business style – things get
done last minute

29. Mexico City
• It can take time to build relationship –
a few social meetings before business
• Trust is often more important than
professional expertise
• Many Mexicans belong to private
clubs
so these are great ways to network
• English is widely spoken in business
circles
• Logistics is tough in the city (bad
traffic and offices are spread out)

30. Middle East & North Africa - MENA
• Persian Gulf
• Middle East
• Israel
• North Africa

31. Tel Aviv
• #2 Entrepreneurial
economy, Startup Genome
• Global businesses being
created here
• Microcosm of normalcy
• Expect politics to come up
at the end of the day after
business is concluded
• Mediterranean vibe mixed
with the cutting edge high
tech

32. Tel Aviv
• Deals are made in cafés
• Dress is business casual,
business is sharp
• Know the holidays even minor
ones
• Sunday is like our Monday
morning
• Communication style – no
nonsense combined with
Mediterranean expressiveness
StarTau – center for Entrepreneurship

33. Dubai, UAE
• Very formal in business & attire
• Don’t handshake automatically
• Don’t shake hands with women
unless a handshake is offered
• Relationship building is the big
first step
• This may take longer than
expected

35. Casablanca, Morocco
• Morocco has a long history of
positive relationships with the west,
especially the US
• English is getting more popular but
French is the commercial language
• Greetings start with inquiries about
you, your family, etc.
• Meetings can be long – people can
be late to meetings
• Business conducted in offices not
over meals
• Moroccan hospitality is well-known
• It’s all about the relationship – Arab
sensibility

36. Commonwealth of Independent States (CIS)
• Member Nations
– Armenia
– Azerbaijan
– Belarus
– Kazakhstan
– Moldova
– Russia
– Tajikistan
– Uzbekistan
• Participating States
– Turkmenistan
– Ukraine

37. Moscow
• Russians are not punctual but
often expect foreigners to be
• Know who the decision maker
is before the meetings
• Russians appreciate
directness
• Business cards are a must
• Deals are sealed with vodka
• Corruption and petty theft are
common so be careful
• Russians are known for their
hospitality

38. Bribery
• Mordida in Mexico
• Propinha in Brazil
• Baksheesh in Middle East, India
• Bastarella in Italy
1. Cameroon 6. Honduras
2. Nigeria 7. Tanzania
3. Indonesia 8. Yugoslavia
4. Azerbaijan 9. Paraguay
5. Uzbekistan 10. Kenya

39. Relative Ease of starting a company

40. Bribe or Gift? The moral dilemma
• In many cultures, gift giving is a normal part of doing
business
• The US and UK have the Foreign Corrupt Practices Act
which prohibits gift giving to government officials
• Companies are just trying to do business abroad and
observe the local customs
• Many companies just let their local agents handle these
things – be aware of how things are being handled

41. Bribe or Gift? Questions…
• If a gift is needed to seal a deal, is that a bribe?
• What if the local culture encourages gift giving?
Where is the line drawn?
• Are there kinds of gifts that constitute a bribe?
• Open vs. hidden bribery
• What about lobbying or preferential contracts awarded to
some for pushing a deal through?

42. Bribery Economies

43. Conclusion
• There are significant upsides to doing business
internationally, but navigating the country specific
market entry can be tricky.
• Evaluate the upsides against the downsides.
• Hiring the right global experts can help mitigate
country/cultural risk.
• After you’ve committed to going global
HAVE FUN!

44. Chinese
literal
translations
for
European
country
names