We liked the information in one blog about business in Germany. And for you, our editorial team selected the main differences between business in Germany and Russia.
Respect
Respect and etiquette are the main concepts in relationships in Germany. This is reflected in letters and meetings. Also, meetings are never interrupted by random visitors.
Unlike Germany, Russia is characterized by close-distance communication, addressing by first name, and generally a less formal way of communication. During meetings or negotiations, etiquette rules are usually observed, but the style of conducting them is more "free." For example, no one will pay much attention if a phone rings, or an employee loses the thread of the conversation, distracted by something else.
Formality
In Russian business, as in principle in German, a large number of agreements are concluded, but in this country oral agreements that are not fixed by contracts are very common and can lead to unpleasant and even criminal consequences. In Germany, informal "verbal" agreements are not allowed.
Bureaucracy and Processes
Bureaucracy in Germany is a way of life. However, despite the seeming tediousness, many processes are now automated, the officials one has to deal with are correct and professional, and the basis of all procedures is the law, which is an undoubted plus.
Planning and Result Orientation
The Russian approach and focus on results is actually nothing more than a cover for the desire to avoid solving problems, shifting responsibility for the company's successes to ordinary employees. This approach is actually very risky and can lead to disastrous consequences for the business.
In Germany, the speed of work is opposite to the result. If you want a result, plan and wait until everyone starts working or drinks their coffee. Goals are set, benchmarks are outlined, the route is laid, but the path itself can be very, very long – regardless of how far in advance everything is planned, the implementation of these plans takes a very long time and constantly stretches. There, it is believed that high speed can lead to a very large (sometimes multi-million) "accident."
Legality
More and more Russian companies operate "in the shadows" in order to increase their profits or hide from competition. This happens mostly due to high taxes and low profits. Different legislation in Germany and mentality can lead to the fact that business ideas or business processes successful in Russia will not work in Germany.
The level of corruption in Germany is one of the lowest in the world. The organization Transparency International on January 23 of this year published last year's Corruption Perceptions Index in 180 countries. Germany took 10th place, scoring 80 points. Russia with 28 points is at the bottom of the ranking.
Conditions for Doing Business
Germany is a progressive country of the European Union with a stable economy, which is an excellent place to start and run a business. It has undeniable advantages: clearly defined rules and laws, political stability, protection from crisis, lack of corruption and artificially created obstacles for entrepreneurship, subsidies and grants from the state for promising companies, low tax rates, which allows increasing business profitability in a short time, and many other "goodies" enshrined in law. But it is necessary to understand that there are always two sides to the coin, and all these laws greatly limit the freedom of action for entrepreneurs. Conditions of constant control, countless restrictions and rules, non-compliance with which threatens very large fines and sanctions, the need to follow all processes, procedures and plans stretched over years will not suit everyone.
In this regard, Russia has more freedom and space for action. However, along with this, there are enough disadvantages, such as an unstable economic situation, corruption, unfair competition, low level of protection from the state, and so on. In conditions of underdevelopment of formal legal norms regulating business, in Russia there is a substitution of legal relationships with informal relationships, which are often associated with illegal actions. Therefore, a certain degree of freedom in doing business can be fraught with risks for companies.
In general, absolutely every country has enough pitfalls in business, even if it seems that everything is perfect and there can be no catch. Therefore, in order to achieve success in entrepreneurship, it is necessary to very carefully and scrupulously study the features of the business environment of a particular country, its laws, and understand all the risks and difficulties in order to overcome them as painlessly as possible.