By FERNANDO ACUÑA Lawyer, Director at Acuña-Silva Rechtsanwälte
Many Chilean small and medium-sized enterprises (SMEs) have proven that internationalizing into the German market—one of the most innovative in the world—is possible. Since 2017, nearly 300 SMEs have successfully completed the Partnering in Business with Germany (PBG) program, promoted by the German Federal Government and Corfo, creating networks with over 1,000 German firms. However, behind these encouraging figures lies a less visible reality: many national companies fail in the same attempt, not due to a lack of quality or innovation, but because of cultural ignorance.
The German market represents a significant opportunity for the country’s SMEs, both for its innovation ecosystem and for access to cutting-edge technology and quality standards capable of substantially elevating their competitive positioning. However, this potential will only materialize if cultural preparation precedes the commercial approach. Training in business codes, communication styles, and compliance expectations is an enabling condition. In internationalization processes, cultural adaptation is an integral part of the strategy.
«Training in business codes, communication styles, and compliance expectations is a basic and essential enabling condition for entering the German market.»
Understanding a country’s culture goes beyond knowing its traditions or symbolic milestones. It involves internalizing the logic behind social and professional relationships: predominant values, implicit norms, and behavioral patterns that guide decision-making. More than the language itself, the decisive factor is tuning into these codes to establish effective communication and avoid unnecessary friction.
In the business sphere, German culture revolves around at least five key principles for establishing a commercial relationship:
- Quality: A good product or service is not enough; excellence is expected in every aspect of the commercial proposal, from manufacturing to after-sales service.
- Structure: Planning, negotiation preparation, and business plans are not optional. It is necessary to offer realistic projections and precise schedules.
- Punctuality: A non-negotiable value. Arriving late is considered a lack of respect and professionalism. There is no room for being three or five minutes late.
- Transparency: Be frank and direct about what can and cannot be offered. It is preferable not to disappoint. German culture is characterized by its straightforwardness, without beating around the bush.
- Precision and Order: Avoid generalizations or superfluous and scattered information. Germans value concrete data. Saying «I was under the impression that» or «I heard that» is very different from citing a verified source.
Unlike Latin culture, where trust often stems from personal bonds or contacts, in German business culture, trust is built through technical and professional competence.
Furthermore, fulfilling acquired commitments—especially regarding established timelines—is a sine qua non requirement for success. This can make the difference between doing business «just once» versus consolidating a long-term commercial partner.
In initial encounters, there is rarely room for small talk. Meetings usually begin by going directly to the objective. If there is time left and good chemistry between the parties, other topics may be discussed after the meeting. A common difficulty in the Latin world is knowing how to say «no.» While saying, «No, I cannot meet that deadline, but I can offer you this,» might feel uncomfortable, a German business partner will always value that honesty. They prefer an honest «no» that they can manage over a «yes» that results in a breach of contract.
