Business culture of Georgia

Being one of the oldest cultures in the world, Georgia has some standards of business etiquette that differ from the generally accepted ones. Understanding these rules can help you understand how to behave in Georgia so that you can build successful business relationships.

Meetings and Greetings

Georgia is a hierarchical society where age, status and authority are highly respected. Greetings are usually expressed with a handshake. The person of higher status should initiate the handshake. You should then shake hands with everyone else present (both when greeting and leaving) and maintain eye contact as this is seen as a sign of respect and trustworthiness.

Introductions at the beginning of meetings are the norm. Usually, introductions are made first in order of seniority, although women are also often introduced first. Academic and professional titles are usually used with the family name.

Business cards are exchanged without any formal ritual. A nice touch would be to have one side of your business card translated into Georgian. 

There may be frequent breaks during the meeting, as Georgians see nothing wrong with dealing with more than one issue at a time. Do not take this as disinterest or show mild irritation, as this is normal.

When you first meet your Georgian counterparts, be prepared to give an overview of your background, experience, and the general purpose of your visit. Initial meetings are more about seeing if doing business together is possible, so don't expect any contracts to be signed or any firm commitments to be made.

Dress Code

Men usually wear suits and ties, while women choose modest dresses or suits.

Gift Giving and Hospitality

If you are invited to a business partner's home, it is customary to bring a small gift, such as chocolate, wine, or flowers. Avoid giving gifts that are too expensive or extravagant, as this may cause embarrassment. Give an odd number of flowers, as even numbers are brought to funerals. Small gifts for children are appreciated. Gifts do not have to be opened when they are given.

Georgians are known for their exceptional hospitality. Business-related social events such as dinners and supras (traditional Georgian feasts) are common in Georgia and provide an opportunity to strengthen relationships with your Georgian counterparts. Toasting is an important aspect of Georgian business meetings. Understanding toasting etiquette and reciprocating toasts demonstrates respect for your hosts. Georgians also value eloquence and wit in conversation. While it may take time to master the Georgian language, knowing a few phrases in Georgian can leave a positive impression. Such dinners are a vital aspect of Georgian business culture, so take the time to attend them and build strong ties with your hosts.

Negotiation Practices

Negotiating in Georgia is a complex process in which directness is balanced with respect for relationships and cultural norms. Understanding these nuances is critical to successful deals.

Georgians prioritize building long-term relationships over short-term gains. Negotiations often involve an initial investment in getting to know the other party. This is consistent with Georgia’s collectivist culture, where social harmony and trust are paramount. Direct confrontation is generally avoided. Negotiators may use subtle hints, proverbs, or stories to get their message across. This reflects the importance of saving face and maintaining a sense of mutual respect.

Negotiations can be lengthy, with a process of back and forth that involves reaching consensus. Patience and persistence are essential for success. Appealing to emotions, honor, and a sense of fairness can be persuasive tactics. Demonstrating a willingness to compromise helps build a sense of reciprocity and respect. Body language, facial expressions, and gestures carry significant weight. Maintaining eye contact and confident body language demonstrate strength, while excessive anxiety or negativity can be detrimental.

Negotiations often follow a hierarchical structure. Respect is given to elders or those in a higher position. In most cases, decisions are made by the company's management. Understanding this dynamic ensures clear communication and avoids disrespect in the negotiation process.

Holidays

Georgia celebrates several national holidays prescribed by the Labor Code of Georgia. These are days of complete rest, and businesses are legally obligated to provide employees with paid leave. Some of the major ones include:

• New Year (January 1).
• Orthodox Christmas (January 7). On this day, many businesses close or operate on reduced hours.
• Victory Day (May 9). Although not a public holiday, many businesses close or operate on reduced staff.
• Independence Day (May 26). Public celebrations and official events are common.
• Assumption of the Blessed Virgin Mary (August 28). Another significant religious holiday in the Georgian Orthodox tradition, often accompanied by business closures.

In addition to national holidays, regional holidays that are common to Georgia's diverse cultural landscape can also impact business operations. These holidays are not official, but companies may adjust schedules based on local customs and employee preferences. Here are a few examples:

• Alaverdoba (September 2). A harvest festival celebrated in Kakheti, Georgia's wine-producing region. Businesses involved in wine production or tourism may experience increased activity during this period.
• Loutroforoba (February 13). A pagan tradition observed in some regions, especially Mestia, that includes horseback riding and knightly competitions. Businesses that cater to tourists may see a slight increase in activity.
• City Holidays. Large cities such as Tbilisi or Batumi often celebrate patron saints' days or local festivals that may impact the opening hours of local businesses.