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| Vienna
Business Profile |
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Vienna
is Austria’s economic powerhouse in addition to being the
capital, and takes the lead in the administrative, cultural and
educational sectors. It is also an important centre for international
business and is one of the most sought-after conference venues in
the world.
Vienna is home to a number of international organisations including
the United Nations Industrial Development Organisation (UNIDO),
the International Atomic Energy Agency (IAEA),
the Organisation of Petroleum Exporting Countries (OPEC),
the United Nations International Drug Control Programme
(UNDCP) and the World Federation of Tourist Guides
Association (WFTGA).
Many of the old small to medium-sized companies have their offices
in the main shopping precinct, the First District
and Sixth District. Newer businesses have spread
out into the suburbs, as far afield as the airport and beyond.
Vienna is the sixth most prosperous region in the European Union.
One-quarter of Austria’s workforce is employed in the city
and the Vienna area generates approximately 28 per cent of the country’s
GDP. Around 40 per cent of all Austrian industrial companies are
located in Vienna. Most of the industry is small to medium sized
– there are very few Austrian multinationals. The unemployment
rate for 2002 was 4.0 per cent, compared with the national average
of 6.3 per cent. Growth has slowed down due to the government’s
restrictive budgeting policy and to the general slowdown in Europe’s
economic growth. This remains especially marked in the construction
industry and in tourism. The inflation rate remains around the 2
per cent mark.
Since joining the European Union on 1 January 1995,
Austria has continued to build on its trade with Western Europe
(three-quarters of its trade is with EU nations, with Germany its
most important trading partner). At the same time, the country is
a major player in the expanding markets of Eastern Europe. Overall,
the country has good ties with its neighbours to the east and this
translates into strong economic relationships (some 14 per cent
of exports are to Eastern European nations). Since it has a small
domestic market, Austria is highly dependent on exports. The country
has a highly skilled workforce and the fortune of having congenial
labour–management relations. Co-operation is mutually beneficial
and results in far fewer strike days. Austrians have a high standard
of living, within the top 15 countries worldwide, and the competitive
marketplace means that consumers demand a high standard of quality
and service.
Business Etiquette
The Austrians, especially the Viennese, are extremely formal and
it is essential to address business contacts by their title, until
familiarity is well established. English is commonly used in international
business settings, however, a few words in German – by way
of introduction – will not go amiss. Nevertheless, business
dress is not too formal in Vienna and it is possible to go to a
business meeting without wearing a tie. It is, however, better for
business visitors to err on the side of caution in the first instance.
Business hours are generally Monday to Friday 0800–1600/1700
hrs, with many offices closing slightly earlier on Friday
at 1500/1600 hrs. Austrians greatly enjoy eating in restaurants
and business meeting are often scheduled over a long lunch. Breakfast
and brunch meetings are also becoming increasingly popular. Business
visitors should not suggest lunch as a location for a first meeting.
Austrians tend to keep work and social life quite separate. Overtime
and weekend work is very rare. On those few occasions when one is
invited to a business contact or colleague’s home for dinner,
a gift of flowers for the hostess and a bottle of wine for the host
is essential, as is punctuality. Visitors to homes should also at
least offer to take off their shoes upon entering. Business meals
are more for getting to know people, so family and politics should
be avoided in conversation. |
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