Doing business in Peru is generally welcoming for foreigners: the government actively encourages foreign investment, and the economy is one of Latin America’s most open and commodity-driven. Recent growth has been steady rather than spectacular, and both inflation and public debt are low.
Mining is central to the economy. Peru is one of the world’s largest producers of copper and has major deposits of silver, gold, lead, and zinc. Agriculture, fishing, natural gas, oil, and manufacturing are the other main sectors. The capital, Lima, is the centre of commerce and is where most foreigners do business in Peru.
Peru is an attractive place to do business, thanks to its natural resources and open, investment-friendly economy. Political stability is the weak spot: the country has seen rapid turnover of presidents and cabinets in recent years, and companies have learned to plan around the churn.
Fast facts
Business hours
Business hours in Peru are fairly standard: 9am to 6pm, Monday to Friday. Most people take an hour off for lunch.
Business language
Spanish is the main language of business in Peru. While English may be understood in large corporate enterprises in Lima, it is not widely spoken or understood within the public sector. If you don’t speak Spanish, you should arrange an interpreter for meetings with smaller firms or government offices.
Greetings
Greetings in Peru are formal in business settings. Between women, or between a man and a woman who already know each other, a single kiss on one cheek is quite common. People who don’t know each other as well (or men who are friends) usually keep to a handshake. Address people by their title (Señor or Señora, or a professional title such as Doctor or Ingeniero) and surname until you’re invited to use first names.
Dress
Business dress in Peru is formal and conservative. Men wear dark suits and ties. Women wear tailored dresses or smart blouses with skirts. Peruvians place weight on first impressions, so err on the side of looking polished.
Gifts
Gifts are not expected at business meetings, but it is common practice to give a gift if invited to someone’s home. Flowers, chocolates, or a good bottle of wine or spirits are all safe choices.
Gender equality
Gender equality in Peru still has a way to go. Gender roles are fairly traditional, and machismo is a feature of many workplaces. Women are well represented in the workforce but thin on the ground in senior leadership, and they still earn less than men for comparable work despite a law against wage discrimination. Foreign businesswomen are generally treated with respect in professional circles, especially in Lima, and you’ll be taken seriously if you stay confident and professional.
Business culture in Peru
Business culture in Peru is built on relationships and trust, much as it is across Latin America. Peruvians prefer to deal with people they already know, so it pays to network early and often. You’ll often get further on a strong personal connection than on a polished pitch.
Management style
Management style in Peru is formal and top-down: companies are hierarchical, and the people at the top make the decisions. Senior managers may consult junior staff, but only lightly, and those in authority are respected for their experience and know-how. To avoid delays and mixed messages, make sure your meeting is with the senior decision-makers rather than intermediaries.
Communication style
The communication style in Peru is indirect and rather ambiguous, so it may be difficult to decipher what someone is truly saying. Peruvians care a great deal about saving face, and they typically try to avoid causing offence or confrontation. When conversing, a Peruvian may appear to agree with what is being said, even if they don’t really.
Peruvians are largely open, and it’s not unusual for them to stand close together and touch each other on the shoulder or hands while talking.
Business relationships
In Peru, you build a business relationship on the person first, not the deal. Peruvians like to get to know an associate before doing business together, so they often open a meeting with small talk about family or football.
Dos and don’ts of doing business in Peru
- Do make small talk at the start of a meeting, but avoid topics such as politics and religion
- Do be punctual, but don’t expect the same in return; people often turn up late, and the more senior the person, the longer you may wait
- Do try to learn some Spanish, especially for dealings with the public sector, since English is not widely spoken outside city business circles
- Do bring plenty of business cards and have one side printed in Spanish. Present yours with the Spanish side facing the recipient.
- Don’t bring up the War of the Pacific or draw comparisons with Chile; many Peruvians still feel strongly about the 19th-century conflict