Interview: Erik Heidema, Managing partner of Pro4CE

By the editor

Comparing your experiences, what do you consider the main differences in business culture between the Netherlands and Slovakia?

There are many differences between Slovak and Dutch business cultures. I have been working for around 20 years in Slovakia now, and over time, these differences have become far less substantial than they used to be. This has mainly been influenced by the business culture of international corporations coming to Slovakia, and by Slovaks returning from working or studying abroad.

The most obvious difference between the two business cultures is the way we communicate with each other. In the Netherlands, we are used to informal communication at all levels of an organization. The Dutch tend to ask direct questions, and we expect clear and straightforward answers. This is very different to Slovak business culture. Communication is less open and far more formal. But also, Slovaks are not really keen to share business information, as this is considered as know-how, so it always takes extra time and effort to get there. The older generation also tend to address each other formerly using Mr., Mrs., Ms., family names, and titles.

Another big difference is the leadership principle. Slovak business is much more hierarchically structured with clear responsibilities and decision-making power connected with the position within the organization. The boss is really the boss, and makes all the decisions. In the Netherlands, although the organigram of a company reflects the organizational structure, anybody within the organization is usually able to discuss their ideas with any layer within the company. Decisions are more often made by a team consensus.

In Slovak business culture, doing business is very much connected with good relationships, implying a certain level of trust and much less based on quality. Working in Slovakia and with Slovaks, it is very noticeable that Slovaks often try to find connections to common friends, family or whoever they might know, when you first meet them. This is a kind of screening process to assess if cooperation makes sense or not, I guess this is a hangover from socialist times.

Erik Heidema (left) and his business partner Laurens de Man

What was your main reason(s) to establish a company in Slovakia, and given the current situation, would you make this choice to start in Slovakia again today?

For me, Slovakia is still an “unpolished diamond”. A relatively unknown country with a central location in Europe. My first projects related to tourism development, and I saw immediately the enormous potential to become a popular tourism destination. Being in the business of supporting foreign investments in Slovakia, I think we made an excellent choice to base ourselves in Bratislava. When I see all of our clients that successfully started their business in Slovakia over the years, I am confident that Slovakia is a country that still offers plenty of opportunities for Dutch investors and companies. It is great to see that when our potential clients set up in Slovakia, they are really surprised that Slovakia has a modern European “look and feel” and that it is an excellent country to do business in.

How would you rank Slovakia’s position in the business environment in Europe, and why?

Although Slovakia does not rank that highly compared to other Central and Eastern European companies, I am confident that Slovakia has the potential to increase its attractiveness as a business destination. In our business of facilitating investments in Slovakia, we highly value having the euro currency, which gives a competitive edge compared to neighbouring countries. Another valuable asset is Slovakia’s highly skilled labour force, and the younger generation are very keen to grow and educate themselves. All in all, Slovakia is a very European country with a solid infrastructure for doing business.

What was your biggest problem when doing business in Slovakia?

Business is not always about success, but also about overcoming complications. It can be very frustrating overcoming bureaucratic obstacles, especially when you don’t understand why you have to go through these extra steps. But I have to say that Slovakia, in many aspects, has caught up with and even overtaken the Netherlands. Especially as regards free accessible online data, such as company extracts, financial overviews, and ownership’s deeds.

In my view, a serious concern related to the business culture is that it is still considered by many Slovaks to be normal to gain personal benefits related to a certain position, whether working in a state institution, or an organization with power to influence the running of a business. Luckily, especially in recent years, huge progress has been made to expose these kinds of practices, which I believe will create a better business environment t in Slovakia.

What is your main advice for successfully managing a company in Slovakia?

It is very important to show respect for Slovak culture, but this is true for any other country where you do business. Don’t expect that Slovaks will change or adapt to all aspects of Dutch culture. As Dutch, we are used to expressing ourselves in a direct and informal way, so it is important to show respect and move forward step-by-step. Being too direct can be considered impolite or even insulting in Slovakia. Invest more time in relationship building with your business partners, which will eventually lead to more trust. Eating and especially drinking with Slovaks can open up business relations. Search for common interest to discuss. Slovakia is a proud nation, especially with regards to their ice hockey stars, football players and Peter Sagan. Prepare yourself, respect the formal way of doing business, and when you gain their trust, your business will get a boost.