Business culture in Bolivia

Bolivia is a country located in the heart of South America and is known for its rich cultural heritage. When doing business in this country, it is important to understand and respect local customs and etiquette.

In Bolivia, it is customary to give gifts to a potential business partner, and if you are invited to dinner with the family, something for their spouse and/or children. Cigars, books, art, flowers (for women), fine spirits, or chocolates are all appropriate gifts for business colleagues. A particularly thoughtful gift will go a long way.

When you give someone a wrapped or packaged gift, Bolivians will usually not open it in front of you. They will wait until you leave. There are exceptions, however, and sometimes it is considered polite for them to share your gift with you. For example, a bottle of whiskey, a couple of cigars, or a box of chocolates can be brought out after dinner for both of you to enjoy.

Business Cards

• Business cards are exchanged when you first meet.
• Try translating one side of your business card into Spanish.
• Be sure to include all academic qualifications on your card.

Communication

Bolivians love it when you try to speak Spanish. Most upper-class Bolivians speak English, French, or German. However, if they do, they will admire you more if you try to speak Spanish. Even if your Spanish is terrible, the fact that you tried will win you more points in their eyes than if you showed up in Bolivia simply assuming that everyone else should try for you. Bad grammar and a limited vocabulary don't matter - what matters is that you tried.

If you have no Spanish skills at all, hire a translator. A translator will help you navigate the conversation gracefully and will pick up on social and cultural nuances of the conversation that you may have missed, keeping you informed.

Maintain direct and consistent eye contact with anyone who speaks to you, at all times. Looking down or changing your gaze makes people think you are untrustworthy. Looking away when you are talking to someone or when they are talking to you is poor business etiquette. This makes them feel like you don't value their presence or ideas.

If you are a woman, you will have to work even harder on your business etiquette to be trusted and treated as an equal or at least an ally. Your credentials and experience will be very important.

Dress Code

Men wear suits and ties when conducting business. Do not remove your jacket or tie until your colleague does. In La Paz, people tend to wear dark suits made of heavier fabrics because of the cold.

Women should wear knee-length business skirts, a crisp shirt and jacket. A woman who dresses impeccably and very professionally will be taken more seriously. In Bolivia, what you wear has a direct impact on your professional advancement.

Negotiation Practices

In Bolivia, negotiation practices are deeply rooted in cultural norms and preferred approaches. Bolivians prioritize building relationships before delving into the details of a deal. Establishing trust is critical to successful negotiations. They often take a long-term perspective, focusing on long-term partnerships rather than short-term gains. This approach requires patience and flexibility.

Bolivians often use indirect communication during negotiations. This approach is not a sign of weakness, but a way to move toward a solution while preserving relationships. Bargaining, especially in informal settings, is expected. Be prepared to make counteroffers and avoid initial offers that leave no room for negotiation.

Respect for hierarchy is paramount in Bolivian negotiations. Often they involve a decision maker who may not be present at the initial discussions. Establishing rapport and a sense of mutual respect, known as “personalismo,” is critical. Social interaction outside of formal meetings can be helpful. Pay attention to nonverbal cues such as eye contact and body language. Avoid overly aggressive posturing or interruptions.

Decisions in Bolivian business are often made by superiors with limited input from subordinates. This can be seen as a reflection of the cultural emphasis on respect for authority. The need for approval from higher levels can result in a slower decision-making process compared to flatter organizational structures.

Business Dinner

If you are hosting a business dinner, choose a reputable restaurant and cover all expenses. Follow proper table manners, such as waiting for the host to start eating and keeping your hands on the table while eating. Toasts are common at business dinners. Raise your glass and offer a toast to express gratitude or appreciation. Bolivian cuisine is varied and delicious. Don't be shy about trying local dishes and showing that you appreciate the food.

Holidays and Anniversaries

Bolivia's rich cultural heritage is reflected in its holidays and anniversaries, which can have a significant impact on business operations.

• New Year's Day. Celebrated on January 1st. On this day, most businesses close in accordance with the Bolivian Labor Code.
• Carnival. A multi-day celebration with colorful parades, music, and dancing. Although not an official national holiday, many businesses close or operate on reduced hours, especially in areas with strong traditions.
• Ekeko Day. This unique holiday is dedicated to Ekeko, the god of abundance. People buy miniature images of desired things (e.g. houses, cars) so that Ekeko will "bless" them for future achievements.
• Good Friday. A solemn day of religious celebration of the crucifixion of Jesus Christ. Most businesses close or operate on reduced hours.
• May Day. This day of workers' solidarity is a national holiday during which most businesses are closed by law.
• National Revolution Day. Commemorates the 1809 uprising against Spanish rule. Celebrated on July 16, businesses are usually closed or operate on reduced hours.
• Independence Day. Celebrated with parades on August 6, most businesses close on this day.
• All Saints' Day. On November 1, families honor deceased loved ones by preparing elaborate offerings called "tumpas." Businesses may operate on reduced hours.
• La Paz Traditions Day.  Celebrated on July 15th in La Paz, in memory of its cultural heritage. Businesses reduce their hours.
• Christmas. Celebrated on December 25th, most businesses close and reopen on the 26th.

Also keep in mind that each department of Bolivia has its own regional festivals, which can significantly affect business operations in those areas of the country.

Bolivia has a strong Catholic tradition. Businesses should be mindful of religious observances, especially during Holy Week.

It is also important to remember that the country has many indigenous peoples with their own traditions and holidays. Some of these involve temporary closure of businesses, especially in rural areas. Keep in mind that depending on the industry and location, companies may introduce reduced hours before major holidays and festivals.