Is Chile the best country to start business in Latin America?

World Bank has stated “When It Comes To Doing Business, Chile is The Best In South America”. Is it so? How about other topics to consider, such as – workforce, business culture, language?

Chile offers a stable economic and political environment, with excellent growth prospects. It also has a respectable legal framework, designed to guarantee the protection of investments and the ability to operate in accordance with normal business practice. Chilean financial markets are well developed, with a high domestic savings rate largely due to its private pension fund system. Generally, there are no restrictions based on the nationality of partners, shareholders or owners of Chilean companies. The only restrictions imposed by law in this respect apply to certain highly specific fields of business such as coastal shipping.

Political stability

Looking on a regional level, Chile is one of the most stable countries in the Latin America. If someone has doubts about it, can get confidence by noticing reasonable immigration flows from other South America countries, such as Venezuela, Bolivia, Colombia, and others. It confirms, that people from near-my countries, consider Chile economically or politically more stable and with better opportunities, than their own.

Language for business

Businesses who operate in Chile and Latinamerica knows the importance of Spanish knowledge and how often companies. It might seem logical, that in a Latin America, where almost all countries have Spanish as their official language, is less necessary to learn English, so local person, which you meet on the street, might not be able to communicate with you in English. Still, you might expect, that in such institutions, as Banks, you will be able to talk with someone in English, which might not be possible. Generally chileans are friendly and open minded to help you out, still for important business meetings you might want to take some local person and interpreter to help you to communicate in Spanish.

Client servicing

According to World Economic Forum data, Chile takes place nr 50 regarding labour market efficiency. From one side it shows its negative side, from other - opportunities for other companies to bring in new technologies to increase the efficiency. Overall, client servicing follow the good standards, just sometimes you might need a bit more patience in terms of time. It also means there are opportunities for improving, for example, by introducing new technologies within client servicing processes.

Communication & work style

Chileans are willing to acquire the knowledge and necessary information, learn and adapt quickly. From culture communication perspective - be aware, that Chileans want to be polite, and because it is used to be impolite to say the truth directly – you might be facing postponing, delaying deadlines, until the business relationship dissolve by itself. In that case you need to read "between the lines" and analyze deeper, what could be the real issue, real problem or reason to act so.

Do you agree with the article?

What other pluses and minuses have you identified for doing business in or with Chile?