Venezuela Culture of Business

By | July 24, 2022
Basic data
Capital Caracas
Population 31, 30 million
Language Spanish
Religion Roman Catholic 71%
State system Federative presidential republic
Head of State Nicolás Maduro Moros / Juan Gerardo Guaidó Márquez
Head of government Nicolás Maduro Moros
Currency name bolivar
Travel
Time shift – 5/6 hours
Economy
Nominal GDP (billion USD) 52.2
Economic growth (%) -3.7
Inflation (%) 1,098.7
Unemployment (%) 45.5

The government in Venezuela is headed and appointed by the president. The latter was supposed to be elected in 2018, but these elections were manipulated by the ruling socialist party PSUV (Partido Socialista Unido de Venezuela) and were not recognized by a large part of democratic countries. In response to this method of electing Nicolás Maduro at the beginning of 2019, the National Assembly at the time activated constitutional measures and appointed its president, Juan Guaidó, as interim president, who was also officially recognized by the government of the Czech Republic in February 2019. Given that Juan Guaidó does not have the conditions to create own government cabinet and the implementation of the necessary reforms, the country is therefore influenced primarily by the measures of the regime cabinet. This Summary Territorial Information therefore works with this information. Visit Calculatorinc for more information about Venezuela culture and traditions.

Venezuela is a country with absolutely extraordinary mineral wealth (the largest confirmed oil reserves in the world) and a potential that is impossible to evaluate given the restrictions imposed by the ruling regime. During the time of its founder, Hugo Chávez, Bolivarian socialism profited almost exclusively from the enormous revenues from the sale of oil, which it also used to its full extent for its geopolitical interests. Thus, the country does not have a sufficiently developed production base and an agricultural structure capable of ensuring food self-sufficiency. However, after the collapse of world oil prices and as a result of zero funding for the recovery of production and maintenance of equipment, the country was losing regular income at a rapid pace. Exuberant social programs exacerbated the country’s economic decline. Unfortunately, a slight improvement in macroeconomic indicators does not mean an improvement in the overall state of the economy, but a higher tolerance of the system towards the spontaneous dollarization of the country, which, however, is not legally or systemically anchored in any way, apart from allowing payments in dollars. The deep economic crisis combined with the dramatic degradation of democratic institutions was exacerbated by the pandemic situation and the drastic measures of the Chavista government of Nicolás Maduro, not to mention the exodus of people that has been going on for several years. Qualified forces are thus almost non-existent in the country. Some remain only out of fear of confiscation of real estate and assets. Qualified forces are thus almost non-existent in the country. Some remain only out of fear of confiscation of real estate and property. Qualified forces are thus almost non-existent in the country. Some remain only out of fear of confiscation of real estate and property.

This Summary Territorial Information is processed for a country that is so-called accredited. The information is provided in an abbreviated form.

Cultural and business meetings

Subchapters:

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

Introduction

The style and ethics of business dealings in private companies and enterprises are increasingly approaching the standards valid in Europe and the USA, some customs may seem strange to Czech entrepreneurs. However, patience and smooth behavior, including a very well-groomed appearance, are important for all negotiations.

Addressing

It is advantageous to communicate with the people of Venezuela in their native and official language, i.e. Spanish. Negotiation in English is often possible, but never as cordial and efficient. The personal presence of the trader in the territory is absolutely necessary for the success of the trade, you cannot expect to close the trade by fax or e-mail. It often takes several phone calls, e-mails or even personal meetings to find out the contact details of the desired person.

In personal contact, it is important to start with the exchange of polite phrases “Placer conocerle/ Mucho gusto” (nice to meet you, nice to meet you). ‘Como le va?’ Great emphasis is placed on the appearance of the business partner. Clothing and personal hygiene are an image of an individual’s social status and success. It is therefore advisable to change your clothes several times a day and to strictly observe personal hygiene.

Venezuelan Spanish is one of the more difficult to understand and uses many regional expressions. For example, the true meaning of the word ‘mañana’ means not only tomorrow, but also in a few years. This is particularly noticeable in state institutions. Perception of time is far more free in Venezuela than in the Czech Republic or Europe.

Before traveling to Venezuela, it is therefore advisable to visit the websites of some Venezuelan periodicals (for example, El Universal, El Nacional, etc.) and get up-to-date information about the events in the country as well as some local expressions.

Business meeting

Venezuelans are not very punctual when organizing meetings, and it is not uncommon to wait even more than half an hour when the Czech partner is punctual. Punctuality can be better if it is a Venezuelan branch of a multinational company. It is customary to exchange business cards, and the partner will be pleased if the business card is in Spanish.

It is better to arrange business meetings during working hours (usually 8 a.m. to 5 p.m.) with the exception of Fridays and days preceding public holidays or periods of extended leave. The period of Christmas and the end of the year is completely excluded, because most people, more wealthy and less, try to travel to visit relatives during the Christmas period (and Easter week as well), mostly abroad.

Venezuelans have no problem starting business contacts during celebrations or in a restaurant, cafe, or even in the office. Exceptionally, they can also invite their partners home. In this case, it is important to arrive at the meeting at least 15 minutes late, preferably 30 minutes late. On the contrary, if a Venezuelan invites his business partner to his office or company, it is recommended to be more punctual.

A gift is a good way to break the ice. Gifts are usually opened on site as well. The day after the invitation to a business meeting, in addition to a gift from the partner, it is recommended to send a follow-up thank-you note, ideally handwritten.

Communication

It is best to negotiate business in Spanish, however, larger or international companies and businesses usually train their employees in English and more capable business people can communicate in English very well. Italian is also common among the descendants of Italian immigrants. However, in state-owned enterprises and especially in offices, English is very exceptional and it is not expected that people will not communicate. It is therefore recommended to have an interpreter for such meetings.

Venezuelans clearly prefer personal meetings or phone calls, they do not always have to respond to emails.

Recommendation

When traveling to Venezuela, it is necessary to be patient, however, despite being late, Venezuelans are very communicative and nice people. If it is necessary to walk through the streets, non-provocative clothing and overall appearance are recommended due to the high level of crime. On the contrary, it is good to be well dressed and not to underestimate other perceptual components of appearance.

Public Holidays

January 1 – New Year

February – Carnival

March – April – Easter week

April 19 – Beginning of the independence movement (1810)

May 1 – Labor Day

June 24 – Army Day – Anniversary of the Battle of Carabobo (1821)

July 5 – Independence Day (Signing of the Declaration of Independence 1811)

July 24 – Birth of Simón Bolívar (1783)

August 3 – National Flag Day

October 12 – Day of Native Resistance (Discovery of America 1492)

December 25 – Christmas

Venezuela Culture of Business