South Asia: Top Ten Tips for Doing Business in the Sub-Continent
Deborah Swallow | August 20th, 2009 in : General, South Asia, tips on doing business around the world
In South Asia the countries have a common colonial heritage
and many of the prevailing attitudes derive from that heritage. The richer, more educated people are very elitist and the poorer classes are very conscious of knowing their place in the multilayered social structure. They accept bribery as a part of normal exchange and view it as commission, not corruption. All these attitudes impact greatly the way business is carried out, with whom, and how things get done.
India is vast with many different cultures, religions and cultures. Referred to as one of the BRIC countries (Brazil, Russia, India, China) it has a fast-growing developing economy. Vast numbers of highly educated, numerate, English-speaking young people have supplied the necessary workforce for a growing high-tech knowledge economy. The modern India, with its Bollywood films, sits firmly by the side of its third world old India.
So far in this section you’ll find the Top Ten Tips for doing business in four countries of South Asia, along with opening times, holiday dates and festivities. These are: India, Pakistan, Sri Lanka, Myanmar (Burma).
India
- Business is conducted at a snail’s pace. Be prepared for a good deal of discussion, followed by a long wait for final decision
- A handshake signals an agreement; but business contracts will be scrutinized and this can take weeks or months.
- A direct ‘No’ is never possible; Indians will say many things that sound like ‘Yes’ but aren’t!
- Phrase questions carefully, i.e. “Where does this road lead?” not “Does this road go to Mombai?” Indian responses can be ambiguous; they’ll tell you what they think you want to hear so as not to please you and so that you do not lose face.
- Always budget for “commissions”; you will be expected to pay for any introductions or favours. These payments are the oil that greases the wheel.
- Indians are often seen as the best negotiators; they’ll drive a hard bargain, and then drive it some more! Negotiating teams are led by management and supported by technical experts. High-level management make the decisions but they may not be represented on the team. Middle Managers do make some input into the decision. Incentives will help the process.
- Relationships are important, along with good contacts for business. Building trust is vital.
- A win/win approach is aimed at, though compromise is acceptable, but trust makes everyone flexible.
- Don’t expect people to use their initiative and make things happen; strong fatalism and predestiny play a large part in people’s thinking. No one will tell the boss he is wrong or making a mistake, even when an underlying knows something is wrong.
- Don’t give criticism as Indians easily take offence; be sensitive to, and respectful of, the concept of Face. Harmony is extremely important
Public Holidays:
January 1 New Year’s Day
January 14 Makara Sakrankti
January 14 Pongal
January 26 Republic Day
February 17 Vasant Panchami/Sri Panchami
February 23 Eid ul Zuha or Adha
March 13 Maha Shivaratri
March 24 Muharram or Ashoora
March 28 Holi
March/April Good Friday* date changes every year
April 14 Baisakhi, Vishu/Bahag, Mesadi, Maghi
April 21 Sri Rama Navami
April 25 Mahavir Jayanthi
May 25 Milad un Nabi or Eid ul Milad (The Prophet’s Birthday)
August 15 Independence Day
August 22 Raksha Bandhan
August 31 Krishna Janamashti or Janmastami
September 10 Ganesh Chaturthi/Vinayaka Chaturthi
October 2 Mahatma Gandhi’s Birthday
October 15 Dussehra (Vijaya Dashmi)
November 4 Diwali (Deepavali)
November 6 Bhai Duj
November 19 Guru Nanak’s Birthday
December 6 Eid ul Fitr
December 25 Christmas Day
Weekend Saturday, Sunday
Business Hours 9.30-5.00
Pakistan
- Focused negotiations and hard bargaining
- Pakistan is a large bureaucracy and business is conducted at a slow pace
- Build personal relationships before attempting to accomplish your business deals. Trust is all important
- Expect to pay, and budget for, services rendered, introductions made, etc. The euphemistic and ethical justification for paying these ‘bribes’ is treating them like sales commission
- Expect a few meetings to take place before you can secure a deal
- Contracts should be drawn up in both English and the local language of the region.
- Don’t worry if the other person challenges your every claim and checks and verifies everything in detail before coming to a decision.
- Don’t turn down tea offered at a meeting; it’s considered very impolite.
- Don’t joke during meetings; it’s considered rude.
- Don’t ask direct personal questions, especially about the women in their family.
Public Holidays:
February 23 Eid Al Adha
March 15 Islamic New Year
March 23 Pakistan Day
March 24 Ashoora
March/April Good Friday /Easter /Easter Monday date changes every year
May 1 Labour Day
May 25 Prophet’s Birthday
August 14 Independence Day
September 6 Defense of Pakistan Day
September 11 Anniversary of the Death of Qaid-i-Azam
November Start of Ramadan (not a holiday) date changes every year
November 9 Birthday of Allama Iqbal (National Poet)
December 6 Eid Al Fitr
December 25 Birthday of Qaid i-Azam (general holiday)
Christmas Day (Christians only)
December 26 Boxing Day (Christians only)
Weekend Friday
Business Hours 9.00-4.00 (Summer 7.30-2.30)
Sri Lanka
- Rapport and trust are necessary to move business along; this takes time to establish.
- Socialising comes before any negotiations
- Both Sinhalese (Buddhists) and Tamils (Hindus) use traditional and religious beliefs, in combination with their personal feelings and current circumstances, to determine the truth and make decisions. Rules and facts are not absolute.
- People tend to place importance on the group and on an individual’s position and rank within the group.
- Responsibility to the self and to personal relationships is high up on the agenda when the Sinhalese make important business decisions.
- For the Tamil’s, an individual’s responsibility to the group (the family, social group and religion) is of paramount concern.
- Business women are rare here but you will be treated with respect
- Don’t try and hurry things; business moves slowly, delays are frequent, and many trips are necessary.
- Don’t be surprised if your counterpart consults an astrologer before making any important business decisions.
- Don’t refuse any refreshment offered at the beginning of your meeting; this is a sign of goodwill. Compliment your host as a sign of your appreciation.
Public Holidays:
January 14 Tamil Thai Pongal
February 4 National Day or Independence Day
February 23 Eid al Adha
March/April Good Friday date changes every year
April 13 Sinhala/Tamil New Year’s Eve
April 14 Sinhala/Tamil New Year
May 1 May Day
May 24 Milad un Nabi or Eid ul Milad-The Prophet’s Birthday
May 26-27 Vesak(and the following day)
December 6 Eid al Fitr
December 25 Christmas Day
Weekend Saturday, Sunday
Business Hours 8.30 – 4.30/5.00
Myanmar (Burma)
- Who you know matters a lot, and good connections are necessary to do business.
- The tradition of repaying favours matters a lot. You are expected to return a favour without being asked.
- Know people’s status, rank, and title. Use correct names and formal titles, especially when dealing with government officials.
- Exchanging business cards is an important transaction.
- Huge acceptance of authority. The boss is there to make the decisions.
- Egalitarianism is perceived as a threat to harmony
- People won’t use their initiative; they’ll be waiting for an OK from their superior.
- Maintain your composure at all times
- Don’t be surprised that astrologers are used in the decision-making process, or prior to business negotiations.
- Don’t expect a good input in discussions; the Myranmar are uncomfortable on committees because governance is by seniority or hierarchy.
Public Holidays:
January 4 Independence Day (1948)
February 12 Day of the Burmese Union
February Eid al Adha
March 2 Peasant’s Day
March 27 Day of the Army
May 1 Labour Day
July 19 Martyr’s Day
Nov/Dec Eid ul Fitr
December 25 Christmas Day
Weekend – Saturday, Sunday
Business Hours 7.30-4.30
Buddhist Events:
April Thingyan Water festival
April Myanmar New Year
May Full moon day of Kason, Birth & 1st Sermon of Buddha
July Buddhist Fast begins
October Buddhist Fast ends (Light festival)
November Tazaungdaing, Full moon, (Light festival, Cloth weaving competition)
November National Holiday
DecemberJanuary Kayin New Year
Things to be aware of:
The Months are dependent on waxing and waning of the moon. There are 12 months per year; 29 and 30 days duration alternately:
Myanmar Calendar Gregorian Calendar
Kason April & May
Nayon May & June
Waso June & July
Wagaung July & August
Tawthalin August & September
Thadingyut September & October
Tazaungmon October & November
Nadaw November & December
Pyatho December & January
Tabodwe January & February
Tabaung February & March
Tagu March & April
Tags: cross-cultural communication, India, Pakistan, South Asia, top business tips, working internationally