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Doing business in Spain 07/09/2004 00:00

The way deals are done in Spain can be a shock to the uninitiated. Cross-cultural consultant and trainer Eleonore Breukel offers some advice.

Cultural background Spanish culture has influenced the world greatly in the past. At one time Spain ruled in South America, the Caribbean and as far east as the Philippines.

Having a large network
helps get things done.
  As a result of this large colonial influence today 250 million people around the world have the Spanish language as their mother tongue.
The Spanish Overseas Empire gradually collapsed. Only in 1975, after the dictatorship of General Franco, did Spain make a significant comeback on to the world stage. The country developed rapidly as a global economical power. Many post-colonial ties on a government level and an abundance of family ties across oceans offer the country an advantage in doing business worldwide. Spain has seventeen autonomous regions which in terms of culture differ enormously. Spaniards identify themselves first with their region and secondly with the country. For this reason, always find out the origins of your new clients. Language and religion The Spanish language is Castillian and comes from the region of Castille. It is the official language in the entire country. The Catalans in the strongly developed region of Catalonia, (Barcelona) speak their own language; Catalan. In the north of Spain 600,000 people speak Basque. In the north-west, Galician is the dominant language. Throughout the country most people are belong to the Catholic church.  Doing business Spain has a relational culture. Starting business in Spain means building a network of contacts in different sectors of society. To get your client to trust you right from the start it helps to provide him with references about yourself and your company from important people in Spain. Getting yourself introduced by a trusted relation of your new client is also a very good way to start the initial contact. Relations are built personally, not by telephone or e mail. Out-of-the-office meetings like lunches or dinners offer the best occasions to get to know each other better. You will obtain the best information in a relaxed and pleasant situation and certainly not during meetings between the four walls of the office. In Spain you need a large network to get things done. Remember that when people pay you a favour, some day you will have to pay it back. You cannot avoid this system of exchanging favors as the society is built on it. Company heirarchy Be sure that you enter a company at the right level. If you enter too low you may insult the person at a higher level who you really have to deal with. Check and double-check who the best person for you to contact is. Communication should always take place on equal levels. For this reason, if in the course of doing business your Spanish counterpart has problems getting issues approved within his organisation, ask him if it would be a good idea if your superior should speak to his superior. Family-owned businesses Many large companies in Spain are family owned. Usually those companies are very hierarchical. Many family members are employed on different levels within the organisation. Decisions are made at the top, which often means at the family dinner table. How to address Spaniards Spaniards are initially quite formal in a business setting. This will soon change to into a much more informal behaviour. Always shake hands when you enter or leave a room with people. Address people by their academic or professional titles followed by their surname. For example: Abvogado Sanchez. In case people have no titles address them as senor, senora or senorita and their surname. Spaniards show respect by addressing each other by the title 'Don'. If you speak Spanish use the formal form 'Usted' until you are invited to use the familiar form of address 'tú'. Wait for your Spanish host to initiate the use of first names. In order to create distance Spaniards address their house personnel with the formal 'Usted'. Spaniards stand very close to each other, touch each other frequently on the arm, back and shoulder and maintain good eye contact. Names When Spaniards write their name they use the surname of the father and the mother. For example: Pedro Sánchez Hernández his father is called Sánchez and his mother Hernández. Pedro will be addressed as senor Sánchez. When Maria González Miro marries Pedro Sánchez Hernández her name changes to Maria González Miro de Sánchez. She may be addressed as senora González. Jose Marie Maduro has two first names and may be addressed as Jose Maduro or senor Maduro. Meetings Meetings are usually held to communicate decisions already made. Only in meetings with people at the same level, business will be discussed. People seldom openly give their opinions at the meeting table. For this reason, you should try to obtain some information from the general context of the meeting and from non-verbal communication. You will be prevented from losing face in a meeting, as the general aim is to prevent loss of face of any attendees. Meetings may be loud and noisy. It is not considered impolite to interrupt someone. Concept of time Spaniards may be late for meetings or other appointments. As a foreigner you are expected to be on time. Although Spaniards work very hard the way they live their lives is much more relaxed then the northern Europeans or the Americans. In international business life siestas do not exist anymore. Women in business Few women hold high positions in Spanish companies, unless they are family companies. Foreign women are accepted as businesswomen. But northern European businesswomen are often unpleasantly surprised by the attention Spanish men pay them in the office. Paying compliments on her looks, also in business, is a natural way of telling a woman that she is liked. Thank your Spanish client or colleague for the compliment instead of making him lose face by a nasty remark about it. Dress codes The Spaniards like to dress well. Formal business suits are worn by men with dark colors in winter and light in summer, and fashionable business dress is worn by women. Spain has a large shoe industry, therefore shoes are an important part of their dress. The social status of a person is directly connected to dress. Young people, however, are nowadays generally free to wear comfortable clothes. Socialising Spaniards are friendly and hospitable people. They try to enjoy life as much as possible and expect you to do the same. They speak and laugh loudly and like to go out in large groups. Do not expect to get invited in their homes but you will be invited to a restaurant. If you do get invited to their homes take chocolates, flowers or toys for the kids. Always ask what the dress code is. If you want to make friends invite them to a restaurant, arrange a barbecue in your garden or plan another outdoor event. Keep the conversation light. When people get carried away in a conversation they will speak loud and gesticulate heavily. This merely means that they are interested and not that they are angry. Be warm, pay compliments to people and let them know if you really like them.

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