Friday, 7 September 2012

Hungary: The Untapped European Resource

Hungary’s economy has suffered a fate of immense unpredictability since the global recession. This has contributed to a less-than-flattering business development record, especially with regards to direct foreign investment and worries are growing within the halls of government that damaging stagnation could be just
around the corner. People still enjoy a pleasant way of life in the country but this can act as a distraction – pulling focus away from the issues which bubble underneath the surface. Many European political commentators are posing the question: is the worrying developmental stunting due to poor business licensing strategy implemented by the Hungarian government? A great deal of those commentators would stipulate that poor government planning is indeed the reason for declining growth. However, I would offer another proposal – I would suggest that a lack of understanding and cultural awareness on the part of British and American investors with regards to Hungary, its people and its language is a far more pressing reason for diminishing business opportunity.

What can be done to improve this? Well, for a start, businesses in the Anglophone West need to shape up their appreciation of all things Hungarian. Budapest is a cultural marketing hub waiting to be exploited and it is a crying shame that so few businesses take the leap of faith required to breach the Hungarian market. If you are a small start-up or a budding entrepreneur then you can lead the way for the rest of the English-speaking business world to follow. Here are the three key steps to ensure that you enjoy successful business trailblazing in Hungary:
1.Culture is the King– Hungary, more so than any other European nation, requires a supremely culturally aware approach from those looking to invest. Everything from the ethnicity of the people, the food and the architecture to the language, the politics and the art is quintessentially Hungarian. This is a nation remarkably devoid of visible influence imprinted by its neighbours and if you treat it like the unique and original country it is, then you will be on a road to success.
2. The Government Requires Appeasement – Local authorities in Hungary maintain an almost unhealthy interest in foreign investment plans. Whilst this can be incredibly frustrating (indeed, it drives some important investors away) it shouldn’t be scoffed at needlessly because the people in charge do have the nation’s interests at heart. Try and make friends quickly and develop council contacts to ensure a smooth business transition into the Hungarian market.
3.There is Only One Tongue – Hungarian, as a language, is the one main business concern for any investor. Whilst many people speak English, the Anglophonic sentiment doesn’t pervade the most important business rituals. Invest properly in Hungarian translation services for all aspects of your company activity to ensure that every step you take is a meticulous and accurate step to success.

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