Business culture in Venezuela

Venezuela, officially known as the Bolivarian Republic of Venezuela, is a country located on the northern coast of South America. It is known for its rich cultural heritage and diverse population. When doing business in Venezuela, it is essential to understand and respect cultural etiquette in order to build successful business relationships.

Relationships and respect

Building strong and trusting personal relationships is very important to most Venezuelans. While younger businesspeople may focus on the deal first, most older generations feel it is necessary to establish strong connections before committing to any deal. Generally, people may only want to do business with people they know, like and trust. Engage in serious business discussions only after your colleagues have thoroughly gotten to know you. This process can take a long time and require several trips to the country to strengthen ties. Venezuelans tend to distrust people who are unwilling to put in the time or whose motives for building relationships are unclear.

Business relationships in this country exist between people, and not necessarily between companies. Establishing personal relationships with others in Venezuela can create powerful business contacts and help you achieve your business goals. Who you know can determine whether people want to get to know you. Likewise, whether people think you're worth knowing and trusting often matters far more than how competent you are or what kind of business proposition you make. Personal connections can open doors and solve problems that would otherwise be quite difficult to overcome. Maintaining honest and cordial relationships is critical. Meeting third parties can be very useful as a starting point for building trust with a potential partner. Your embassy, trade organization, chamber of commerce, or local law or accounting firm can provide a list of potential "enchufados" or intermediaries. Without this contact, it can be difficult to gain access to the right people.

In Venezuela's business culture, the respect a person receives depends primarily on his status, rank, and education. Showing status is important because people will take you more seriously. It is very important to show respect to people of higher status.

Initial contacts and meetings

Negotiations in a country can be conducted by individuals or groups of negotiators. It is vital that teams are well aligned and that everyone  of the participants were clearly assigned roles. Changing a team member may require starting the relationship building process all over again and should therefore be avoided. Venezuelan negotiating teams are usually very well coordinated.

If possible, make appointments at least two weeks in advance. Because people want to know who they will be meeting with, provide detailed information about the titles, positions, and responsibilities of the participants in advance. It is best to send an individual to the first meeting. Subsequent meetings may include other members of your delegation. Venezuelans generally value punctuality much more highly than other Latin Americans. It is best to arrive on time for business meetings, as being late without a valid and plausible excuse can be a serious offense. If there is a delay of more than 5-10 minutes, especially in Caracas with its chaotic traffic, call ahead and apologize deeply, even if it is not your fault.

Names are usually given in this order: first name, then last name. Most Venezuelans have double surnames: the first from the father, the second from the mother. Use Mr./Mrs./Miss or Señor/Señora/Señorita plus the father's last name, which is always the first of the two last names given. If the person has an academic title, such as doctor or professor, use that followed by the father's last name. Only close friends call each other by name. Introduce or greet the oldest person first. The introduction is accompanied by a strong handshake.

Business cards

Exchange of business cards — important step when meeting for the first time, so bring more than you need. It is recommended to use cards with one side in English and the other in Spanish. When presenting the card, make sure the Spanish side is facing the recipient. Smile and maintain eye contact when accepting someone else's card, and then examine it carefully. Then place the card on the table in front of you. Never put someone's business card in your back pocket or treat it disrespectfully.

Communication

Although the official language of Venezuela is Spanish, it is markedly different from the Spanish spoken in Spain. Many businesspeople speak at least some English, but speaking Spanish is a distinct advantage. Sometimes it is useful to involve a translator. To avoid offending the other party, check in advance whether they can attend the meeting. When communicating in English, speak in short, simple sentences and avoid using jargon and slang. Even if the main language of meetings is English, your colleagues may often speak Spanish among themselves.

Although Venezuelans may occasionally raise their voices to make a point, they do not like loud and boisterous behavior. In restaurants, keep conversations at a low level. Also, avoid dominating the conversation. Venezuelans typically talk in close proximity, standing 70cm or less apart from each other. Never back down, even if it's much closer than your personal comfort zone allows. This can be taken as a sign that you are uncomfortable around them.

Gestures and body language can be lively, especially if they help emphasize what is being said. There may be frequent physical contact with people of the same sex. American "OK" sign with the thumb and forefinger forming a circle can be considered an obscene gesture in Venezuela. Eye contact should be very frequent, almost to the point of staring. This conveys sincerity and helps build trust.

Business meetings

Meetings begin with small talk, which can be quite lengthy. It may include personal questions about your background and family, allowing participants to get to know each other. Venezuelans appreciate a sense of humor, but be careful not to overdo it. Business — serious matter in Venezuela. The first meetings may seem formal, but in subsequent meetings the atmosphere usually becomes a little more relaxed.

The main purpose of the first meeting — get to know each other and build relationships. It's okay to discuss business, but don't try to rush your agenda. It is unrealistic to expect that initial meetings will lead to clear decisions.

Presentation materials should be interesting, with good and clear visual effects. If possible, reduce the number of words and avoid complex expressions. Since Venezuelans generally prefer to be in control, avoid monopolizing negotiations or putting pressure on your colleagues. Translation of handouts into Spanish is not mandatory, but will be useful and highly appreciated by your partners.

After your first business contact, your company's senior management usually writes a thank-you note to their Venezuelan colleague.

Negotiations

Using relationships is an important element of negotiations in Venezuela. Although the buyer is in a better position, both parties to a business transaction are responsible for reaching an agreement. They expect long-term commitment from their business partners and focus primarily on long-term benefits. Basic negotiation style — cooperation, but people may be reluctant to compromise unless it is the only way to prevent negotiations from reaching a deadlock. However, one of the important functions of negotiation exchange is the creation and strengthening of connections. Because Venezuelans believe in the concept of win-win, they expect you to reciprocate their feelings and trust. It is strongly recommended to avoid aggressiveness and open confrontation and maintain a calm, friendly, patient tone of conversation.

If a dispute arises at any stage of the negotiations, you can resolve it by focusing on long-term benefits.

Even if the personal relationship is strong, your Venezuelan partners may be reluctant to share information openly. They believe that confidential information creates advantages in negotiations.

Most Venezuelans are accustomed to pursuing several actions and goals at the same time. During negotiations, they often do not take a holistic approach and may jump back and forth between topics rather than addressing them sequentially. Never become irritated or angry when confronted with such behavior. Instead, constantly monitor the progress of negotiations.

If your colleagues seem to be stalling negotiations, carefully evaluate whether their slowing down of the process indicates that they are evaluating alternatives or that they are not interested in doing business with you. Most likely, such behavior either represents an attempt to create time pressure to extract concessions, or simply reflects the slow decision-making process in the country. Again, patience and persistence are vital.

Venezuelans are accustomed to tough bargaining. Concessions are never easy, and although Venezuelans may be interested in new ideas and concepts, they often find it difficult to change their position. Rather than insisting on concessions, it may be better to re-resolve disagreements in subsequent meetings, giving your colleagues the opportunity to reconsider their positions without losing obvious face. Prices may vary approximately 25-35% between initial offer and final agreement. Give yourself plenty of room to make concessions at different stages. Once you do this, always ask the other party to reciprocate.

Decision making

Most companies have a hierarchical structure, and people expect to work within clearly defined boundaries. Many companies in Venezuela are still family-owned. Decision makers are usually heads of households or senior managers who are often authoritarian but have the interests of the group or organization in mind. They may consult with others before making the final offer. Subordinates may be reluctant to take responsibility. Decision makers also rarely delegate, so it is important to deal with senior management. However, gaining access to senior executives can be difficult. You may have to deal with subordinates who can greatly influence the final decision

When making decisions in Venezuela, businessmen do not rely heavily on rules and laws. They usually look at a specific situation rather than applying universal principles. Personal feelings and experiences are more important than empirical data and other objective facts. Venezuelans are often unhappy with change and reluctant to take risks. If you expect them to support a risky decision, you may have to find ways to get them to accept it first.

Agreements and contracts

It is useful to record and exchange written agreements after meetings and at key stages of negotiations. Verbal commitments may sound more convincing than what your Venezuelan colleagues are willing to put in writing. Do not rely on interim agreements to be final, even if they are in the form of written contracts. Any part of the agreement may change significantly before both parties sign the final contract.

Drafting and signing an agreement — this is a formality. Venezuelans believe that the main strength of the agreement lies in the cooperation of the partners, and not in its written documentation.

Before signing a contract, it is advisable to consult with a local legal expert.

Signed contracts may not always be fulfilled. This depends in no small part on the strength of the ongoing relationship between the contracting partners. It is highly recommended to continue to stay in touch and maintain the trust of your Venezuelan business partner. They usually expect the other party to remain reasonably flexible if terms change, which may include agreeing to change the terms of the contract.

Dress code

Business attire in Venezuela is usually formal: men wear suits and ties, and women — conservative business attire.

Business dinner

Business lunches in Venezuela — an important part of building relationships. Venezuelans love to socialize over food and view dining as a way to get to know their business partners on a personal level. To make a positive impression, it is important to understand dining etiquette. Business dinners are often organized in advance and usually the host extends the invitation. Venezuelans begin to eat only after the owner begins the meal. Alcohol is usually served during business dinners, but it is advisable to drink it in moderation and follow the instructions of the host. During a business lunch, it is customary to raise a toast. Wait until the host makes a toast before taking a sip.

Gifts

Gifting is not a common practice in the Venezuelan business environment. However, if you decide to give a gift, it should be of good quality and not too expensive. It is important to consider the recipient's interests and avoid gifts that could be perceived as inappropriate or offensive. Gifts are usually exchanged on special occasions such as holidays or birthdays. Make sure your gift is wrapped neatly and consider using colored wrapping paper. Avoid giving gifts that are too personal or intimate, as they may be misunderstood or make the recipient feel uncomfortable. If you give gifts to colleagues, it is advisable to give similar items to avoid the feeling of favoritism.

Holidays and observances affecting business activities

Venezuela's rich cultural heritage is reflected in its holidays and rituals. These events may have a significant impact on business operations, including both legal and cultural contexts.

Official holidays

• New Year (January 1). This is a national public holiday provided for by the Labor Law. Businesses are usually closed.
• Carnival Celebrated three days before Ash Wednesday with colorful parades and festivities. Although this is not an official holiday, many businesses are closed or operating with reduced hours.
• Declaration of Independence Day (July 5th) This day celebrates the independence of Venezuela. Banks, government offices and many businesses are closing.
• Battle of Carabobo Day (June 24th) This is a major national holiday commemorating the decisive battle in the Revolutionary War. Most businesses are closing.
• Christmas (December 25th) This is a national public holiday celebrated with family gatherings. Businesses are usually closed.

Regional holidays

• Days of Saints (Días de los Santos). Catholicism plays a significant role in the culture of Venezuela. Regional patron saint days may be local holidays that affect business in specific areas.
• School Holidays (Vacaciones Escolares) During school holidays, businesses that cater to families, such as restaurants or tourist attractions, may have increased activity.

Impact on work schedules

• Shortened hours Ahead of major holidays or during extended holidays, businesses may operate shortened hours to allow employees to participate in the holidays.
• Holiday season. August and December — popular holiday months. During this time, companies may face staff reductions or schedule changes.