Latvia first declared statehood in 1918, after being occupied by Germany, Poland, Sweden and Russia. In 1940, it was occupied by the Soviet Union, together with Estonia and Lithuania.
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Latvia Today
Following the collapse of the USSR, Latvia declared independence for the second time in 1991. It joined the World Trade Organisation in 1998, the EU in May 2004 and weeks after that, it joined NATO. Latvia will introduce the euro in 2014.
Situated in north-eastern Europe with a coastline on the Baltic Sea, Latvia has borders with Estonia, Russia, Belarus and Lithuania. Although Latvian culture has been influenced by different countries, religions, cultures and languages, it has developed its own cultural identity with a unique system of values and traditions. Understanding how your Latvian counterparts think and behave is essential for anyone doing business in Latvia.
Latvian Culture - Key Concepts and Values
Identity – Latvians have a strong sense of national identity instilled in them from an early age and are therefore a patriotic people who regard tradition very highly. Latvians tend to be reserved and generally do not make contact with strangers.
Individualism – Latvians emphasise personal management and tend to exhibit individualistic characteristics such as expressing themselves through dress or the ownership of brands. They appreciate family which is at the centre of the social structure, and there is a tendency to conform in social and professional situations.
Space – Latvians tend to respect personal space and avoid public displays of affection. They will usually avoid physical contact, especially with strangers and acquaintances, before getting to know them.
Time – Latvians usually respect punctuality for meetings and pre-booked appointments, both in professional and social settings. Despite their adherence to punctuality, Latvians can be slow to act because as a rule as they do not wish to make hasty and ill-considered decisions.
Privacy – Latvians are quite reserved and are not usually very emotionally expressive in public. They do not tend to mix their professional and social spheres and are keen to reserve their personal stories for close friends and family.
Doing Business in Latvia
For centuries, Latvia was primarily an agricultural country, with seafaring, fishing and forestry also important to its economy. It has experienced a variable economic past, having been occupied by different countries then as a member of the USSR. After regaining independence in 1991, the economy stagnated for a while before seeing any improvement. The years 2005-2008 saw a period of accelerated growth and a particularly thriving banking sector and real estate market. This was cut short when the country was hit by the global financial crisis in 2008. In 2010, however, Latvia showed signs of stabilisation and although the market has been difficult, the country’s economy is fairly secure. Transit services are highly-developed, as well as timber and wood-processing, agriculture and food products and manufacturing of machinery and electronics industries.
Taking advantage of this growing economy requires a profound understanding of local Latvian social and business culture. Due to the bureaucratic nature of Latvian society, business tends to move more slowly than in Western Europe. However, Latvia is an attractive destination for foreign investors due to its excellent geographical location and well developed infrastructure.
Part 1 – Working in Latvia: Working practices in Latvia
Structure and hierarchy in Latvian companies
Working relationships in Latvia
Latvia Business Part 2 – Doing Business in Latvia: Business practices in Latvia
Latvian business etiquette (Do’s and Don’ts)
DO learn a few important Latvian phrases as this will show willingness and an interest in Latvians and their country.
DO speak at the same voice level as your Latvian colleagues.
DO refer to time using the 24 hour clock in a formal business context to avoid misunderstandings and the possibility of missed appointments.
DON’T show too much emotion and affection in public.
DON’T forget to address people appropriately according to their status.
DON’T ask personal questions during business meetings.
Latvian Culture Quiz – True or False
1. It is common for Latvians to show their emotions in public.
2. Shaking hands across a threshold is considered unlucky.
3. It is normal to greet a group of colleagues with a simple hello.
4. Latvians carefully consider the way they dress.
5. Latvia is also called the “nation of singers” and at almost every gathering Latvians love to sing traditional songs.
Latvian Culture Quiz – Answers
1. False.
2. True.
3. False. It is common for Latvians to greet and shake colleagues’ hands individually.
4. True. Appearances matter to Latvians who tend to dress very well.
5. True.
Latvia Today
Following the collapse of the USSR, Latvia declared independence for the second time in 1991. It joined the World Trade Organisation in 1998, the EU in May 2004 and weeks after that, it joined NATO. Latvia will introduce the euro in 2014.
Situated in north-eastern Europe with a coastline on the Baltic Sea, Latvia has borders with Estonia, Russia, Belarus and Lithuania. Although Latvian culture has been influenced by different countries, religions, cultures and languages, it has developed its own cultural identity with a unique system of values and traditions. Understanding how your Latvian counterparts think and behave is essential for anyone doing business in Latvia.
Latvian Culture - Key Concepts and Values
Identity – Latvians have a strong sense of national identity instilled in them from an early age and are therefore a patriotic people who regard tradition very highly. Latvians tend to be reserved and generally do not make contact with strangers.
Individualism – Latvians emphasise personal management and tend to exhibit individualistic characteristics such as expressing themselves through dress or the ownership of brands. They appreciate family which is at the centre of the social structure, and there is a tendency to conform in social and professional situations.
Space – Latvians tend to respect personal space and avoid public displays of affection. They will usually avoid physical contact, especially with strangers and acquaintances, before getting to know them.
Time – Latvians usually respect punctuality for meetings and pre-booked appointments, both in professional and social settings. Despite their adherence to punctuality, Latvians can be slow to act because as a rule as they do not wish to make hasty and ill-considered decisions.
Privacy – Latvians are quite reserved and are not usually very emotionally expressive in public. They do not tend to mix their professional and social spheres and are keen to reserve their personal stories for close friends and family.
Doing Business in Latvia
For centuries, Latvia was primarily an agricultural country, with seafaring, fishing and forestry also important to its economy. It has experienced a variable economic past, having been occupied by different countries then as a member of the USSR. After regaining independence in 1991, the economy stagnated for a while before seeing any improvement. The years 2005-2008 saw a period of accelerated growth and a particularly thriving banking sector and real estate market. This was cut short when the country was hit by the global financial crisis in 2008. In 2010, however, Latvia showed signs of stabilisation and although the market has been difficult, the country’s economy is fairly secure. Transit services are highly-developed, as well as timber and wood-processing, agriculture and food products and manufacturing of machinery and electronics industries.
Taking advantage of this growing economy requires a profound understanding of local Latvian social and business culture. Due to the bureaucratic nature of Latvian society, business tends to move more slowly than in Western Europe. However, Latvia is an attractive destination for foreign investors due to its excellent geographical location and well developed infrastructure.
Part 1 – Working in Latvia: Working practices in Latvia
Structure and hierarchy in Latvian companies
Working relationships in Latvia
Latvia Business Part 2 – Doing Business in Latvia: Business practices in Latvia
Latvian business etiquette (Do’s and Don’ts)
DO learn a few important Latvian phrases as this will show willingness and an interest in Latvians and their country.
DO speak at the same voice level as your Latvian colleagues.
DO refer to time using the 24 hour clock in a formal business context to avoid misunderstandings and the possibility of missed appointments.
DON’T show too much emotion and affection in public.
DON’T forget to address people appropriately according to their status.
DON’T ask personal questions during business meetings.
Latvian Culture Quiz – True or False
1. It is common for Latvians to show their emotions in public.
2. Shaking hands across a threshold is considered unlucky.
3. It is normal to greet a group of colleagues with a simple hello.
4. Latvians carefully consider the way they dress.
5. Latvia is also called the “nation of singers” and at almost every gathering Latvians love to sing traditional songs.
Latvian Culture Quiz – Answers
1. False.
2. True.
3. False. It is common for Latvians to greet and shake colleagues’ hands individually.
4. True. Appearances matter to Latvians who tend to dress very well.
5. True.
