The Importance of Culture in the Latin American Business World

Are you planning on expanding your business into Latin America? It could potentially provide you and your company with lots of benefits as you open yourselves up to a brand new market. However, if you are going to open up a business in Latin America, it’s important for you to keep in mind that the culture in that part of the world is much different than it is in America and beyond. There are certain customs that you will need to familiarize yourself with to be successful, and you will need to spend time learning about all of the customs, especially if you are going to be bringing local employees on board and asking them to work for you.

Business Has a Personal Element

In Latin America, people consider the companies that they work for to be like their family. You could say the same thing about many American countries, but there’s even more of a focus on family in Latin America. Superiors are expected to protect and look out for their subordinates, while those in the lower levels of a business are expected to show the utmost respect to those in power. But there is also a collective spirit in the workplace with everyone expecting to be treated with a certain level of kindness, no matter where they rank or what job they do.

Loyalty is Emphasized

Those who work in different parts of Latin America are often very loyal to their companies. But they also expect this loyalty to be rewarded. That doesn’t necessarily mean that they want extra money or days off for working a certain number of years. Rather, it means that they want to be acknowledged for staying loyal. This acknowledgment is essential to many people in Latin America, and if you don’t show it, it could cause a rift between you and your employees.

Conflict Resolution

Conflict resolution is another aspect of culture in Latin America that you should be mindful about before opening a business there. When conflicts arise, those in Latin America often appreciate when a superior steps in and helps solve the issue at hand rather than simply scolding both employees and telling them to get back to work. Not all Latin American cultures work this way, but in general, you should think about how you plan to deal with conflict among your employees, regardless of which culture you are opening in. It could save you from encountering a big headache later.

SMG Consulting Services realizes the difficulties companies can face when moving their businesses into Latin American territory. We can help you break down cultural walls and get a better understanding of your new market. We can also help you avoid the potential pitfalls that come along with expanding your business into Latin America. Contact us today to hear about our specialized services.

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