Doing business in Bolivia

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Doing business in Bolivia

• What foreign businessmen should know about their
  Bolivian counterparts

Rafael Gastón Lemaître Leaño Intercultural Team
Management - TIM 99
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Content

• Bolivia at a glance
• Business environment
• Business meetings
• Negotiation style
• Dining
• Visiting

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Bolivia at a glance...

• Area 1.098.581 km2
• Regions Highlands (16), semitropica
  valleys (19) and lowlands (65)
• Population 8.100.000 inhabitants, 56
  indians, 25 blood mixed and 15 whites
• Religion Catholic 90
• Language Spanish, Qhechua, Aymara and
  Guarani
• GDP us 8,6 Billionen
• GDP per Capita us 1.000
• Inflation rate 4,4
• Exports us 1,1 Billion
• Imports us 1,7 Billion

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Business environment

• Business are based in relationships and insider
  status
• The business class in Bolivia conforms an
  economic elite which controls the nations wealth
• Most business persons have ample direct exposure
  to U.S. and West European customs and procedures
• Businesswomen encounter no barriers in Bolivia
• Corruption is present, principally at lower
  levels of government (CPI 2,7 - 71 position,
  Transparency International)

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Business Meetings

• Initial contact
• Local contacts who know the ins and outs of
  Bolivian bureaucracy and trade are essential
• Trade shows, trade missions, chambers of
  commerce, trade associations, government
  agencies, are recommended to make the first
  contact with Bolivian business persons
• The first written correspondence should be in
  Spanish

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Business Meetings

• Setting Appointments
• Request an appointment two weeks in advance
• Office hours 900 to 1200 and 1400 to 1830
• Only two meetings per day
• Orientation to time
• Bolivians are known for they impunctuality
  Bolivian time
• Promptness of social occasions is not expected

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Business Meetings

• The language of business
• Spanish is the official language of commerce
• English is widely spoken
• Hand out materials and business cards should be
  in Spanish
• Personal appearance
• Bolivian business persons are conservative
• Avoid extravagant hair styles, ear rings, tattoos

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Business Meetings

• Dress style
• Businessmen wear dark suits, long arm shirts and
  ties
• Businesswomen wear dark suits or skirts and white
  blouses
• Greetings
• Hand shaking at the first introduction meeting
• Use the counterparts title
• First names are not used between estrangers

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Business Meetings

• Gestures and communication style
• Bolivians use hands, eyes and facial expressions
  to communicate
• Little personal space during conversation
• High contact culture
• No eye contact is signal of shyness or mistrust
• Conversational overlap is not rude
• Topics of conversation
• Family,sports, travel, Bolivian culture

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Negotiation Style

• Bolivians are know as good bargainers
• Friends and family members word is often more
  acceptable than facts
• Business negotiations are slower than in western
  countries
• It could be necessary more than one meeting to
  make a deal

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Dining

• Mealtimes are important times to socialising
• light breakfast (700 to 900)
• Substantial lunch (1200 to 1400)
• Dinner (after 1900)
• Wine, spirits or liqueurs are acceptable during
  meals
• Most of the times the business talking take place
  after the meal

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Visiting and gifts giving

• Promptness is not expected
• It is nice to try each food that is offered
• Compliments on the meal are appreciated
• Good gifts are chocolates, flowers, wine, whisky
• Avoid yellow and purple flowers

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Thank you for your attention!