EDITORIAL FEATURE
Doing Business
in Azerbaijan
By Ludmila (Mila) Rusakova Golovine
W
ith the current economic situation in
the former Soviet sphere, most businesspeople are hesitant to expand and
invest there. Although this suspicion
may be well-founded in many former Soviet
republics several are actually developing at an
astounding rate and becoming stable places in
which to do business. One of these rare gems is
the Republic of Azerbaijan. For the past twenty
years this country has striven to reinvent itself.
Although blessed with abundant oil and natural
gas reserves, Azerbaijan has consciously decided not to give in to the so-called “curse of oil”
and become merely a petro-state. The government has made considerable investment into
non-petroleum sectors to diversify its economy
and also passed legal and tax reforms encouraging investment. By slashing through red tape
and easing the registration process for new
businesses, Azerbaijan has made itself very attractive for new entrepreneurs. Consequently,
opportunity abounds here but it can only be
attained by those who are cognizant of the cultural differences between Western and Azeri
business cultures.
Above all else, it is crucial to recognize that
Azeri culture is an amalgamation of several distinct cultures. Located on the west coast of the
Caspian Sea, Azerbaijan is a natural crossroads
between Central Asia, Russia, and Iran. Thus,
the culture has assimilated aspects and influences of all of these. Although physically cut off
from Turkey, there are still strong cultural and
linguistic ties to that country as well. In fact, it
was not until recently that the people began to
refer to their language as Azeri instead of calling
it simply a form of “Turkish.” It is also important
to note that the Azeri diaspora is quite spread
out as well. More Azeris live in northwestern
Iran than in Azerbaijan itself while there is also
14 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2015 ]
Importantly, the level of formality is
much higher in Azeri culture than in
American culture. Much more deference
is given to elders. Therefore, when a
senior Azeri businessperson enters
the room it is customary to rise.
a sizeable minority presence in Turkey as well.
Consequently, it is important not be taken off
guard by the multi-cultural mosaic of the culture.
Communication is done quite differently in
Azerbaijan than in the United States. As in many
countries, Azeris employ indirect communication in many cases to avoid offense or negativity.
For example, “yes” does not always mean “yes”
and “no” does not always mean “no.” In this
case, you will have to rely on body language and
non-verbal cues to determine the true meaning
of the response. Nevertheless, if the relationship
becomes more developed and a level of trust
is established then the level of communicative
directness will increase as well. Therefore, it is
necessary to demonstrate patience until such
time as the communication becomes clearer.
Importantly, the level of formality is much
higher in Azeri culture than in American culture. Much more deference is given to elders.
Therefore, when a senior Azeri businessperson
enters the room it is customary to rise. Also
seating is done in a special way according to
status, rank, and age. In this case, it is best to
follow the Azeri lead to avoid offense. In addition, maintaining eye contact is crucial. Azeris
are unlike East Asians who view sustained eye
contact as impudence. To Azeris eye contact
indicates sincerity. Therefore, if someone looks