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The United States of America is founded on a fundamental belief in equality and national and regional identity. Today, the US population represents a multicultural mosaic of cultural and racial heritage. With its division into 50 independent and culturally diverse states, the US combines regional differences into one strong society united by tight national bonds.

America’s influence on business culture across the globe is undeniable, but understanding the local culture and habits is just as important when doing business in the US as in any other country. American culture is unique and may be challenging for any organisation doing business in the US that is unfamiliar with its variety. The following are some of the key challenges of doing business in the US.

Multiculturalism
Every organisation planning to establish their business in the US needs to be aware of the country’s cultural diversity. Immigrants from around the world brought their own values and beliefs to the US, creating a unique American culture. Today, according to the US Census there are more than 100 million people who belong to an ethnic group creating an even stronger multicultural influence. This phenomenon may be very difficult to understand for anyone coming from a homogenous culture. Multiculturalism is also visible in the office environment where people represent different values and beliefs.

Individualism
The concept of individualism is highly significant in American culture. Individual initiative and personal achievement are emphasised and valued. This sense of independence and self-reliance also extends to the workplace where business is frequently carried out autonomously. Consequently, an individual’s position in US society is determined by their own achievements rather than status or age. This may be a challenge for organisations doing business in the US who are accustomed to more hierarchical and collectivist behaviour.

Low Context Culture
The US has a low context culture, defined by the tendency to communicate explicitly. American society is task-centred and the primary purpose of communication is to exchange information, facts and opinions. In the US, conflict is dealt with directly and openly and Americans will not hesitate to say “no” or criticise others in public. This direct style of speech may be interpreted by foreign visitors as rude and may cause embarrassment to those who are unaccustomed to such explicit communication. However, it is important to remember that this bears no relation to personal feelings in an American business context.

Egalitarianism
An important element of American culture is the concept of equality. Despite the many differences within American society, there is a collective understanding of the notion of equality. Americans believe in having equal rights, equal social obligations and equal opportunities based on the concept of individual merit. Consequently, there is a general lack of deference in the US to people of greater wealth, age, higher social status or authority. This is evident in the way in which titles are seldom used in business environments and how Americans call each other by their first names almost immediately. People coming from more hierarchical backgrounds may find it difficult to get used to this lack of formality and visible division of power in the American business environment.

Understanding American multiculturalism, independence and individualism is key to doing business in the US effectively. This can be achieved by following a cultural training program designed specifically for the USA. Attending Communicaid’s Doing Business in the US cross awareness training program will help individuals and organisations to maximise the benefits of their investments in this individualist and self-sufficient country.

© Communicaid Group Ltd. 2010