For German startups, expansion to France is an obvious step: The market is large, relations are good and the rules are uniform thanks to the EU. But there is an unexpected stumbling block: Despite the geographical proximity, the corporate culture on the other side of the Rhine is significantly different. For our „Going Global“ series, Nicolas Vermersch, General Secretary of the Franco-German Business Club Bavaria, explains what German companies have to look out for when working with French partners.
France, with its 20 unicorn companies, is the European target country that won the most foreign investors in 2019 (source: EY). It is very positive about the acceptance of German startups in order to enable the emergence of future European champions.
Even if France and Germany share a long history as neighboring countries, a successful market entry in France requires knowledge of the country’s cultural characteristics.
French people lack knowledge of German culture
In general, the French are not very familiar with German culture and a little too often succumb to one or the other prejudice. Very few people know the history of the German nation and the strong cultural differences between our various federal states. They tend to mix things up. They envy Germany’s economic success, but not our way of life (gastronomy, monotony). So it’s about overcoming these clichés from the first contact.
While we insist on reliability, risk measurement and profitability when starting a new project, the French are more interested in the innovative side of the project and don’t want to go into too much detail at the beginning. The French are much more attached to the concept and willingness to take risks than to the security and risk aversion that are typical of us.
At the beginning of the relationship it is therefore extremely important to convey this vision of the future to the future partner.
Creative doesn’t mean chaotic
We’re used to saying that Germans are never out of the ordinary, while French are very creative. You may therefore be surprised by the chaotic side of your conversation partner when you first meet. You will have the feeling that they are striving in all directions without a common thread. Do not be astonished by this.
While we may be more organized through our upbringing, they are undoubtedly more inventive and more comfortable in complex relationships.
Knowledge of culture and economy as the key to success
The French are more attached to their own identities than we are, and in some ways proud of them. They appreciate their history, their country, their culture, their republic, their – compared to ours – milder climate and of course their way of life “living like God in France”.
This knowledge of French culture is your key to being successful in creating trustworthy relationships. Are you interested in your interlocutors and their interests.
Let’s take an example of the cultural differences between the two countries: while staying in the office late can be seen as a sign of disorganization in France, overtime in France is a sign of willingness to work.
Knowledge of the French economic fabric is also an important element in ensuring the success of your partnership and / or your establishment in France. Two organizations can help you with the implementation:
Business France is a French public body that can help you set up a business in France.
In 2013, the French government launched French Tech, an ecosystem that brings together startups, investors and decision-makers.
The main difference between the French and German economic structures is the very strong centralization of economic actors in Paris and its region. Even if the government is taking a lot of decentralization initiatives, one has to be aware that France is still very much focused on Paris at the moment.
Discussions and negotiations
While we maintain an open, direct and sober tone, communication in France is more indirect, more ambiguous and uses more extensive paraphrases.
Even if it has improved a lot in recent years, the English level of many French people is sometimes well below expectations. It is therefore advisable to bring as much as possible „in writing“ and with graphic representations. A combination of presentation and picture elements (flipchart, etc.) is also very useful.
The decision-making processes are also longer in France. Do not let this worry you, but take these elements into account when planning your steps.
“Made in Germany” is highly regarded in France. In universities, companies and the speeches of executives, the German economy is often taken as a role model and envied. You will therefore be warmly welcomed.
Final tips
Always show your French partners that you respect them and their culture.
Do not be too direct in your communication with your interlocutors.
Don’t expect a decision to be made as quickly as you want it to be.
Conclusion
Since the election of Emmanuel Macron in 2017, France has moved on to a pro-business agenda: labor law has been reformed, tax cuts introduced and new regulations passed – including the introduction of the world’s best “startup talent” visa. France doubled the number of “unicorn startups” in the first half of 2019. With a long history of innovation and value creation, the French state has earned a good reputation as a supporter of startups.
And if you would like to make contact with Franco-German entrepreneurs, freelancers and employees from a wide variety of companies here in Munich, you are very welcome to join us in the Franco-German business club in Bavaria. At our events and company visits, an economic topic is always the focus and there is ample opportunity for networking afterwards. Our “NextGen” junior group is aimed specifically at graduates and young professionals with a German-French background. You can find more information at www.clubeco.de or just follow us on LinkedIn.