negotiating global business cultures: from estonia to the world!

Learn about Estonian business culture and the blend of innovation, efficiency, and directness that appeals to many international entrepreneurs

Establishing a business in a global environment presents unique opportunities and challenges. For e-⁠residents making use of Estonia’s digital infrastructure to do business without borders, understanding and adapting to diverse cultures is critical for success. Estonian business culture and practices, in particular, offer a blend of innovation, efficiency, and directness that appeals to many international entrepreneurs. But these cultural nuances can also require thoughtful adaptation.

Adapting to local business culture is something many global entrepreneurs are familiar with. In this article, I reflect on what is unique about Estonian business culture through the eyes of Hannah Brown. You will know her as the editor of this publication, and she’s also an Australian who has been living and working in Estonia for over 5 years. As she prepares to end her role at e-⁠Residency and move into entrepreneurship herself, her unique perspective working for the Estonian government while liaising with international e-⁠residents sheds fascinating light on this issue.

What is business culture, and why does it matter?

Business culture encompasses the shared values, practices, and communication styles that shape how organisations operate and interact. It influences everything from leadership styles to employee relationships, decision-making, and even how success is measured. 

At its core, business culture reflects the social and historical context of a country or region. For example, in Northern Europe, cultures often prioritise efficiency, directness, and egalitarianism, while in Southern Europe or Asia, hierarchical structures and relationship-building may take precedence. 

These differences affect meetings, decision-making, and conflict resolution. Misaligned expectations about “normal” behaviour can unintentionally cause offence or seem rude.

How business cultures vary across the world

The world’s business cultures are as diverse as its languages and cuisines, reflecting unique histories, values, and social structures. Entrepreneurs stepping into the global arena often encounter these variations, which can be both enriching and challenging.

Communication styles: High-context vs. low-context

One of the most noticeable differences lies in how people communicate. In high-context cultures, such as those in Japan, China, and much of the Middle East, communication tends to be nuanced and implicit. Non-verbal cues, context, and relationships play a significant role in understanding messages. By contrast, low-context cultures, such as those in Northern Europe and North America, prioritise clarity and directness. Every detail is often spelled out, leaving less room for ambiguity.

For example, Estonian business culture is a textbook example of low-context communication. Meetings start on time, focus on efficiency, and avoid small talk. This approach contrasts starkly with cultures where extensive pre-meeting pleasantries are considered essential for building trust.

Recognising these patterns is key to navigating global business cultures. Tools like Erin Meyer’s The Culture Map help e-⁠residents understand cultural norms and their impact on professional interactions. As well as providing a blueprint for any upcoming meetings or collaborations, you can gain a lot of insight into your own communication styles and preferences. 

Hierarchy and decision-making

Cultural attitudes towards hierarchy and decision-making also vary widely. In more hierarchical cultures, such as those in India or South Korea, deference to authority is ingrained in business interactions. Decisions often flow from the top down, and challenging a superior’s opinion is rare.

In contrast, Estonia exemplifies a more egalitarian approach, where leaders encourage input from all team members. This openness supports the country’s thriving startup ecosystem, where collaboration and innovation are prioritised. However, for those accustomed to hierarchical structures, this flat approach can initially feel unstructured or overly informal.

In fact, as Hannah pointed out, despite half the room generally wearing hoodies and trainers instead of sharp suits, the structures of the actual collaboration can be very technocratic, particularly in the startup world.

“Teams like to use project management apps and face-to-face meetings to communicate and negotiate between themselves,“ she explained. This can take some getting used to for creative roles, where the output is the outcome and much of the deep work done independently. It can result in delays, indecision, and - at times - a lack of flexibility as someone might be unable to make a quick pragmatic decision outside the project loop.

Individualism vs Collectivism

Another key factor is the emphasis on individualism versus collectivism. Western cultures, particularly in the United States, tend to value individual achievements and autonomy. Success is often framed as a personal accomplishment. Conversely, collectivist cultures, such as those in Latin America and Southeast Asia, prioritise group harmony and shared success.

Estonian business culture strikes a balance between the two. While individual innovation is celebrated, the collaborative ethos of its tech-driven economy encourages team success. 

Hannah praises this problem-solving culture but notes the absence of overt validation. That can feel unusual for those from more recognition-oriented environments like Australia. “What I've learned is that no news is good news, basically. So if you're not being told that you're doing a bad job, you're probably doing a good job.”

Timing is everything - or is it?

In business, time is of the essence. At least in some countries! In others, time is more of a guide rather than a rule...

As Hannah pointed out, “punctuality is important in Estonian business culture. That's putting it mildly. Estonians pride themselves on being on time or even being a little bit early. They don't have much patience for people who are late. That means being on time to start the meeting formalities, not simply getting somewhere on time.”

This may have implications for the programme itself, now strengthening links with entrepreneurial communities in Africa and Asia, where the social expectations might be very different. Each new business relationship requires redefining “normal” and finding a balance where communication, understanding, and respect can flourish.

Silja Paulus, an Estonian health and wellness coach now living in Barcelona, would agree. “Estonians, we want to get straight to the point and drop any small talk niceties. Chatting with an Estonian via direct messaging can sometimes seem a bit rude and harsh because we value efficiency. To me, it seems that people in Spain want to socialise a lot, and even if I don't always understand what they are talking about, it sounds like a lot of words!”

Challenges in cross-cultural relationships for e-⁠residents

Conducting business across cultures offers significant rewards, but it also presents unique challenges. For e-⁠residents working globally, cultural misunderstandings can lead to inefficiencies, strained relationships, and lost opportunities. Identifying and addressing these challenges is essential for building successful international partnerships.

Cultural competencies for e-⁠resident entrepreneurs

Working with these differences, observing them, understanding them, and allowing for them, is part of what makes doing business the borderless way so richly interesting. The differences can seem daunting, but they also offer valuable opportunities for innovation and collaboration. 

For e-⁠residents, developing the skills to navigate these differences effectively is crucial to building strong global partnerships and achieving business success. While no strategy fits all situations, certain universal approaches can help entrepreneurs adapt to diverse cultural landscapes. Every meeting is a learning experience, and a chance to broaden horizons and learn new things - so you can embrace the cultural diversity, and vive la difference.

Establishing a reliable network of contacts in different regions also provides valuable insights into cultural norms and helps you navigate unfamiliar territory. Estonia’s e-Residency programme offers access to a global community of entrepreneurs, as well as resources and events to help e-⁠residents connect with local markets. 

To thrive in international business, consider the following ideas:

• Do Your Homework: Use resources like The Culture Map to understand cultural differences in communication, leadership, and decision-making.
• Observe and Listen: Pay attention to how colleagues and partners behave during meetings and adapt accordingly. Small details, such as when and how people express agreement or disagreement, can reveal a lot.
• Use Neutral Communication: Avoid idioms, jargon, or overly casual language that may not translate well across cultures. Stick to clear and professional language.
• Be Punctual: Especially in cultures like Estonia, punctuality is a sign of respect and professionalism.
• Seek Feedback: Proactively ask for input on your performance or proposals, especially in cultures like Estonia where feedback may not be volunteered readily.
• Be Patient: Some cultures value thorough deliberation over quick decisions. Show respect for these processes, even if they differ from your usual pace.
• If in doubt, ask! Generally people are glad to explain and elaborate about their way of doing things, and respond positively to appreciative enquiries.
• Over-fit first: When in any doubt, go for more formal attire, more punctuality, more respectful forms of address, etc. in the first instance. It’s far easier to relax later on as you develop the relationship, than to re-establish it in the event of any social mistakes early on.

Remember: Cultural adaptation is not a one-time effort, but an ongoing process. Each new interaction is an opportunity to learn, refine your approach, and deepen your understanding of global business dynamics. By demonstrating curiosity, respect, and flexibility, e-⁠residents can overcome cultural barriers and turn them into opportunities for meaningful collaboration.

International entrepreneurship is as much about understanding people as it is about understanding markets. Equipped with these strategies, e-⁠residents are well-positioned to lead the way in a rapidly globalising business world.