Negócios na América Latina / Doing Business in Latin America

Como somos umas das poucas empresas especializadas em negócios com a América Latina em Hong Kong, é normal que meus chefes sejam convidados para dar palestras e participar de eventos de instituições do governo, consulados, etc. Essa semana o chefão, Mr. Wong, foi convidado para apresentar um breve discurso sobre cultura de negócios na América Latina.

Mas claro que dessa vez sobrou pra mim e eu fui a selecionada para preparar o discurso! O que é extremamente cansativo, uma carga extra para todo o trabalho que eu já tenho normalmente. Apesar disso, eu gosto de escrever os discursos. Pelo menos é uma chance de me atualizar sobre assuntos realmente importantes e eu posso escrever 'maomeno' o meu ponto de vista.

Naquelas, já que o chefe faz várias alterações. De qualquer maneira, hoje resolvi postar o discurso que eu escrevi. A versão apresentada pelo Mr. Wong não é a mesma abaixo, eu tentei fazer com que essa versão voltasse a ter o "meu estilo" para poder colocar aqui no blog.

Sinto muito, mas não vou traduzir este texto ao português, é muito grande! Qualquer dúvida, favor referir-se ao tradutor do Google. Espero que gostem! :)

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Being part of one of the few companies in Hong Kong that is specialized in Latin American business, my bosses are frequently requested to give presentations and participate in events organized by government, consulates and etc. This week the big boss, Mr. Wong, was invited to do a brief speech about business culture in Latin America. 

Of course, I was the lucky one chosen to write the speech! This task can be very exhausting, considering the huge workload I already have everyday. Still, I enjoy writing such speeches, it's a good opportunity to update myself and I can kinda write what I damn want.  

Kinda, since in the end my boss changes several things to make it more his style. Anyway, today I decided to post the speech here on the blog. This is not the version presented by Mr. Wong, I try to change it back to the original format when I first wrote it.

Hope you enjoy! :)

Practical Business and Cultural Insights in Latin America

One of the key points for having success when dealing with Latin America is to understand the differences between these countries and the variety of customs, values and beliefs which reflect their unique culture and business style.

Especially now that Latin America has been put on the political and economical global spotlight, many international entrepreneurs have been longing to enter this market to explore all its potential. In this text I will discuss the facts that make Latin America a unique place for business; how to get the best from each country; my personal experience in dealing with the Latin community. The focus will be mainly in the some of the fastest growing countries in Latin America: Argentina, Colombia, Mexico, Chile and of course, Brazil.

So, Latin America, always remembered in the past by economic deficiencies, unstable currencies is now experiencing a robust economic growth that has caught the attention of the whole world. It is clear that the region have shown a high economic growth in the past nine years. In 2010, as Europe presented a growth in GDP of only 2.4%, Latin America had a growth of 6.2%, an extraordinary rise from the economic crisis of the previous year.

When you compare some of the major economical indicators of Argentina, Brazil, Chile, Colombia Mexico and also China, these countries, despite the economical crisis, still maintain a rising economy, which is a common trend followed by the whole region. But in terms of GDP per capita, the results reflect some of the social challenges that Brazil, Colombia and even China are still facing nowadays.

Almost as important as the macroeconomic information, it is also fundamental to understand more about a country’s business environment. Historical and cultural factors can have a long lasting influence on how people do business. I have observed that the main difficulty for Latin American people to do business here in Hong Kong is the lack of knowledge about the system in Hong Kong. It is often the case that the questions they ask mirror the same situation when they are doing business back home - facing time consuming procedures, going through the approval of managers, lawyers, accountants and banks. But eventually, they get really surprised when they see how easy it is to do business in Hong Kong.

A recent report on Doing Business, released by the World Bank, highlights the strengths and weaknesses of each country. For example, Mexico has been strengthening its mechanism of access to credit, by implementing a centralized collateral registry with an electronic online database. Chile has one of the friendliest systems in the world for the starting-up of companies, and has made international trade very flexible by signing several double taxation and free trade agreements, like the DTA with Hong Kong which will be probably signed within this year. Brazil is currently one of the countries that have received more and more foreign direct investments due to the improvements in the business legal compliance. Colombia is easing the administrative burden of paying taxes by adopting electronic filing technologies. Argentina provides equal treatment for domestic and foreign investment, and is strengthening its regulations for transfer of properties.

But there is also a subjective barrier that hinders and in many cases prevents the development of business deals – the cultural factor. It is in the long run fundamental to the success or failure of any business.

But Latin America represents a variety of cultures, habits, geographic and demographic profiles. Even the Spanish language differs from one country to another, not to mention that in Brazil, we speak Portuguese and in the mindset of Brazilian people, we prefer not to be generalized as “Latin People”.

Just like in China, a business deal is based on a good relationship, which we call it “Guan xi” in Chinese. Handling a business with Latin America also requires relationship building. It is crucial to earn their trust over the course of time, by showing them you are capable of being their support to do business in China and Hong Kong because you understand their business needs. On the other hand, Latin American businessmen may not trust you enough until they have persistently asked you numerous questions about your family, politics, religious beliefs, sports, and other topics that you might not be comfortable to talk about in a business meeting.

Another issue that we should pay attention is the concept of time. The handling of time can be challenging for those following Asian costumes. In terms of meetings and appointments, do not get disappointed if they are late. In most Latin countries, a little lateness is expected. Arriving on time or earlier than the schedule might show that you are too eager, which can be interpreted as something negative. The different concept of time in Latin America can be attributed to a deeper social outlook in the Latin world. The solution is to tolerate and understand that such “lateness” can be interpreted as the value of long-term relationship. Therefore it is natural to assume that it will take some time to establish a concrete alliance. But it doesn’t mean you can only wait until they knock your door –periodic visits, a little networking and sometimes offering some personal concern will bring two different cultures closer.

My third observation, which stems from my personal experience in dealing with fellow Brazilians particularly, is that before closing a deal, you should be patient to answer all sorts of questions and prepared to go into every administrative detail of a project with them. It can be more time consuming to close a deal with Brazilians than with other countries. Unfortunately Brazil has a high level of immobility and a complex system of rules and regulations, which Brazilians are vey compliant to. Therefore, they expect to analyze all possible scenarios before approving your proposal or signing a contract. Some people might see this as a sign of distrust, but it’s nothing more than a guarantee that everything will run according to the plan.

A little suggestion for all to do cross cultural businesses - once the alliances have been established and the business starts flowing, do not be afraid of investing in human resources, meaning hiring someone that can be a contact point between the two business cultures – this is why I am here after all!

Despite the ‘awakening’ of Latin America and its newly acquired status as one of the most attractive markets for the rest of the world, there is still a lot to be done. Most countries in the region still face serious challenges in terms of bureaucracy, informal economy and social gap. In terms of competitiveness, there is still room for improvements. Of course, there have been immense improvements in the past decades, and the adoption of sound economic measures and rigid public policies will ensure that Latin America will soon present economic security and living standards similar to the developed countries.

Brazil has already established itself as an important business hub. Its biggest cities, such as Sao Paulo and Rio have embraced the most modern technologies and infrastructure needed for receiving people from all over the globe. With the upcoming world events such as the World Cup in 2014 and the Olympic Games in 2016, there is still much more to come. Also Colombia is now going through a very important historical and social moment, which I had the opportunity to witness. It has invited more foreign investments than ever in the growing mining, water, infrastructure and energy sectors.

Needless to say, in my daily business with clients from these countries, challenges are always there: different languages, different rules, different mind-sets and different practices. Latin America is more than a geographic concept. Whether here or In Brazil, I still face cultural barriers from many quotidian activities. Above are just some tips for those who are going to take on this international journey – study their social and economic environment, understand their business style and cultural habits, and finally, respect one another. Good luck to all!