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Spain is a large country with a diverse landscape and climate. The division of the country into 19 Autonomous Regions which are further divided into 50 provinces forms a range of cultural varieties. The regions differ from one another and at the same time create a united nation. Spanish culture is deeply rooted in tradition and may be challenging for foreign investors doing business there who are not familiar with it.

Any organisation considering doing business in Spain could benefit from Communicaid’s cross cultural training programmes such as Doing Business in Spain to better deal with the challenges of doing business in Spain. Below are some of the key challenges of doing business in Spain which Communicaid’s cross cultural training programmes could help you understand.

Cultural Diversity
The location of Spain on the Iberian Peninsula exposed the country to numerous invasions throughout history. Spanish civilisation was affected by the successive arrival of people of various nationalities bringing their culture and languages to Spain. This resulted in the division of Spanish society into minority groups who retain their native cultural influences. The additional division of the country into 50 provinces keeps the Spanish people culturally separated and independent. Such cultural diversity within one country can be challenging for foreigners who do not understand how culture impacts business throughout the country.

Individualism
Spain’s cultural diversity has created a strong sense of individualism which is seen through strong bonds and a sense of identity within the various cultural groups. Although individual on many levels, family values and a sense of identity and belonging to a group are all integral parts of society in Spain. Contemporary Spanish culture values personal qualities such as appearance, image and personal relationships. In a business context, personal attributes and character are frequently valued as much as technical ability, experience or professional competence. When doing business in Spain, individualism is particularly predominant in management, where Spanish managers are less inclined to favour group decision making and team orientation.

Face
Spanish culture values the concept of face as a very important matter in personal pride and respect. Face is crucial for Spaniards who strive to avoid the risk of losing face. Therefore, any forms of public criticism or causing embarrassment may result in misunderstanding and unnecessary conflicts in Spain. Saving face is important especially in a business context when your Spanish counterparts have to focus on relationship-building to protect their business investments.

Relationship-building
Spaniards value interpersonal relationships on a business level. They tend to take time to get to know their counterparts and will sometimes go out for a drink or dinner to build the relationship. The trust and relationship building process may be time consuming but will benefit in gaining a long-term and reliable business partner. When doing business in Spain, foreigners need to make an effort to gain the trust of their Spanish counterparts and show them that they value their relationship as much as the business opportunities.

Uncertainty Avoidance
Spaniards are cautious not only with business relationships but also with their approach to new ideas. They prefer to feel truly familiar with new situations before taking any steps or making decisions. Patience is necessary when doing business in Spain as Spaniards try to avoid ambiguity and need as much detail as possible.

Having an understanding of Spanish social and business culture is very important when doing business in Spain. Any organisation doing business in Spain should consider attending Communicaid’s cross cultural training programme Doing Business in Spain to increase their knowledge of the cultural diversity and cultural values and attitudes which can result in misunderstandings and conflicts if not correctly interpreted or understood.

© Communicaid Group Ltd. 2010