Nicaragua Culture of Business

By | July 24, 2022

Subchapters:

  • Introduction
  • Addressing
  • Business Meeting
  • Communication
  • Recommendations
  • Public holidays

Introduction

Although business ethics are increasingly approaching the standards valid in Europe and the USA, Czech entrepreneurs may encounter a number of peculiarities resulting from different cultural and social conditions and business practices.

Addressing

The initial contact is quite formal in Nicaragua, both written communication and personal meeting are accompanied by a large number of courtesies. The address begins with an abbreviation for Mr./Mrs. (Sr./Sra.), followed by the first or both surnames. Guatemalans, like many other Hispanophone nations, have two surnames by law – one after the father, the other after the mother (e.g. Carlos Fuentes Macías). Often, however, only one is used in the address, in the overwhelming majority the first one after the first name (Sr. Fuentes). The initial address is always in the form of an exhortation. In subsequent negotiations and correspondence, only the first name is often used, and in the Czech context, the first name is also used earlier. In certain professions, it is possible to encounter more frequent use of academic titles – medicine (Dr.), technical professions (Arq., Ing.), advocacy (Abg.), teaching (Prof.), etc. Concerns about personal security make contact information for employees and executives of private companies and often government institutions difficult to access throughout Central America. It often takes several phone calls, e-mails or even personal meetings to find out the contact details of the desired person.

  • Programingplease: Yearbook 2010 of nation Nicaragua, including population, politics, and abbreviations.

Business meeting

It is a good idea to request an appointment at least a few days in advance, however confirmation often comes just before the date of the meeting. It is good to make the initial contact in writing – depending on the nature of the matter by letter or e-mail, but subsequent confirmation of the meeting by telephone is usually necessary. Communication is often conducted using the extended WhatsApp application.

Meetings usually take place in the company’s office, after getting to know each other better, you can count on an invitation to lunch. An offer to pay the expenses will be appreciated, but given that the Czech company is in the position of a guest, most Nicaraguans will insist on being paid by them. Gifts are welcome but not expected. Handing over business cards is a standard part of getting to know each other.

Timing of negotiations
The first meetings are usually arranged for 9:30, meetings in the evening are no exception. Despite the widespread notion of time flexibility, it is a good idea to arrive on time for a pre-arranged meeting, Nicaraguans are surprisingly punctual when it comes to work. Especially in the capital, you have to take into account the unpredictable traffic situation, and arriving 10 to 15 minutes later is often tolerated. It is not uncommon for meetings to be postponed at the last minute. In that case, try not to look irritated and accommodate the Nicaraguan side.

What surprises a Czech businessman the most during negotiations?
Although business ethics are increasingly approaching the standards valid in Europe and the USA, Czech entrepreneurs may encounter a number of peculiarities resulting from different cultural and social conditions and business practices. Among the most striking are:

  1. the importance of personal contacts – you cannot sell the best product in Nicaragua without a partner who is well-versed and connected in the industry;
  2. personal zone – Nicaraguans are very sociable, a hug is a standard part of the greeting;
  3. family as a topic of business negotiations – the family is a very important social phenomenon in Nicaragua and often becomes the topic of “small talk” during negotiations;
  4. hierarchy – in Nicaragua it is fairly strictly observed, the level of reception corresponds to the level of visit;
  5. corruption – unfortunately, corruption is still present, especially in the state sector.

What are Nicaraguan traders like?
Preparation for entering the local market should therefore be thorough and well thought out. A frequently used, and almost inevitable, market entry model is in the first stage in cooperation with an agent/distributor or partner company (e.g. on the basis of an agency agreement or joint-venture), and in the second stage, if the cooperation develops, the establishment of a Nicaraguan legal entities.

Is negotiating with local traders different, made difficult by cultural/religious/ethnic differences?
It is certainly necessary to take into account the gradual development of business negotiations, whether during personal negotiations, but also afterwards during the implementation of a business case. Although Nicaragua is predominantly Catholic, you will not encounter religious expressions/differences in the business world. In addition, it is still possible to observe a lower representation of women in decision-making positions, as well as frequent social and ethnic divisions within professions. Visit Calculatorinc for more information about Nicaragua culture and traditions.

How do Nicaraguan business people manage time in a business meeting?
In Nicaragua, even with the politeness parts of the conversation described above, business negotiations can be lengthy. Courtesy topics help Nicaraguans get to know their partner and establish an important personal relationship with them, so it is good to be patient when dealing with them. However, if the partner is prepared in advance that the Czech counterpart only has a certain amount of time for negotiations for objective reasons, it is possible to complete the negotiations in a shorter time.

How do Nicaraguan business people deal with emotions in business negotiations?
Nicaraguans are mostly warm, open people. In business negotiations, however, their demeanor does not differ much from European businessmen.

Are there any territorial differences in trade negotiations within the country (North x South, Provinces)?
The differences in business dealings between the city and the province are similar to other countries. In the region, one can expect less experience with foreign trade, less knowledge of English, but a more “Latin American” (more relaxed) personal approach. In Nicaragua, it is also necessary to take into account the stronger interpersonal ties of influential people, with the positives and negatives that this can have for the Czech company.

It is suitable or customary to offer alcohol during business meetings?
The relationship to alcohol in business relationships is very similar to that in the Czech Republic, it does not belong to business meetings, but it does to a reasonable extent to subsequent social activities (dinners, receptions). How to dress for a work meeting? For business meetings, formal clothing is expected, a suit with a tie is suitable, or costume. A certain flamboyance and quality in dressing can be assessed as a good credit rating of a partner.

Communication

Is it important to bring an interpreter with you?
The official language of Nicaragua is Spanish, which is preferred in business negotiations, although many business partners also speak English. Minor mistakes are tolerantly overlooked and the effort to learn Spanish is appreciated. However, for meetings at a higher level, it is recommended to use the services of an interpreter, who can also be recommended by the Embassy of the Czech Republic in Mexico. Spanish is also appreciated for business cards and business materials.

How about language facilities?
Some of the upper management (both private and state sector) speak English at least at a conversational level, at a lower level English is only basic or not at all. It is therefore necessary to be prepared for the fact that the partner prefers to speak in Spanish with interpretation.

Are there any communication taboos?
We certainly don’t want to put our Nicaraguan counterpart in an unpleasant situation, the standard lesson about avoiding topics such as politics, commenting on the security situation, religion or personal financial situation also applies in Nicaragua.

What is the best way to communicate (in person, email, phone, etc.)?
As in the case of other remote territories of countries, Nicaragua is not a country in which one can expect to establish business contacts or implement business cases simply by sending an offer and a company presentation to selected companies from the field. If you are interested in the Guatemalan market, you must expect a certain initial investment, long-term efforts and the need to be physically present on the market often. It is good to make the initial contact in writing – depending on the nature of the matter by letter or e-mail, but subsequent confirmation of receipt of the letter by telephone is a necessity. A personal meeting is almost inevitable for establishing a first contact. Further communication is often conducted via e-mail and the extended WhatsApp application, even within the state administration.

Recommendation

The recommendations, or rather the obstacles and risks that must be taken into account when Czech companies and enterprises enter the Nicaraguan market, are as follows and can be simply summarized in three points:

  • The costs of foreign representation, without which you cannot apply in the territory for a long time, or at least a frequent personal presence on the market, and the risk of recovering these costs.
  • Risks associated with participation in public tenders, which often bear signs of non-transparency and corrupt behavior.
  • Claims for higher competitiveness of Czech goods due to the low price of local labor and high transport costs.

Public Holidays

  1. 1. New Year
    Easter – Thursday and Friday of Holy Week
    1. 5. Labor Day
    19. 7. Emancipation Day
    14. 9. Commemoration of the Battle of San Jacinto
    15. 9. Independence Day (Declaration of Independence 15. 9. 1821)
    25 12. Christmas

Nicaragua Culture of Business