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Doing Business in Peru | Peruvian Social and Business Culture

A Peruvian Culture Overview Fact File o o o o o o o Official name – Republic of Peru Population – 28,546,963* Official Language – Spanish Currency – Nuevo Sol (PEN) Capital city – Lima GDP – purchasing power parity $238.9 million * GDP Per Capita – purchasing power parity $8,400*

A Peruvian Overview Located at the crossroads ofthe Pacific Ocean, the Andean Highlands and the Amazon Basin, Peru is a nation whose geography is just as diverse as its population. Peru’s unique population is an ethnic melting pot of Spanish heritage mixed with native Amerindian roots. Peruvians are known for their friendliness and hospitality and will make special efforts to make foreigners feel welcomed. Although Peru has endured periods ofcivil unrest and economic difficulty in recent years, current reforms are making Peru a more stable environment for business endeavours. Having an awareness and appreciation of Peru’s unique cultural nuances is an integral part to ensuring successful business ventures in Peru. Peruvian Culture – Key Concepts and Values Time- Time in Peru is approached in a very relaxed and flexible manner. Businessmeetings are often delayed as a result. This approach towards time is often referred to as “la hora Peruana” or “Peruvian time”, meaning that some meetings will begin as late as one hour. It is therefore necessary to allow several hours for business meetings in case they do begin late, but as a visitor, always make an effort to be on time even if you end up waiting. Relationships- Peruvians placea high emphasis on relationship building. Family in particular is a very important concept to Peruvians so they tend to place the needs of family before the needs of the company. As such, people in Peru will also take the time to get to know their business counterparts before making deals. Religion- Religion plays an important role in the daily life of many Peruvians. Over ninety percent of thepopulation actively participates in the Catholic religion. Many festivals and holidays are centred around Catholic traditions and typically involve cultural dances, music and traditional Peruvian cuisine. Some holidays such as Alasitas involve combining traditions of Catholicism mixed in with indigenous beliefs. Doing Business in Peru After centuries under Spanish rule, Peru gained independence inthe mid-nineteenth century. After a period of political turbulence, Peru is now making progressive steps to reform its current political systems and is experiencing significant economic growth which has given rise to increased confidence in the business sector. Services and manufacturing account for the majority of Peruvian gross domestic product while increased consumption in the private sectorhas improved terms of trade with foreign partners. As such, Peru’s increasing
Doing Business in Peru © Communicaid Group Ltd. 2009

economic growth and stability makes it a promising location for new business ventures. Understanding Peru’s complex economic and social history and culture will give you a competitive edge as you navigate Peruvian business culture. Peruvian Business Part 1 - Workingin the Peru (Pre-departure) o Working practices in Peru • Business hours are normally 8am to 6pm Monday to Saturday. People normally take a longer lunch anytime between 1pm and 3pm. Business lunch meetings are also common and are a convenient time to discuss business deals. Peruvians have a relatively flexible approach to time so don’t be surprised if business meetings or social functions beginlate. Keep in mind that business meetings and negotiations often take a long time so you should keep a few hours open for appointments. Meetings should be scheduled one month in advance and confirmed the week before. Many Peruvians go on holiday between January and March, so it is wise to schedule business meetings outside of this period. You should also avoid making unannounced business calls as...