Half of Russian businessmen believe that entrepreneurs from India know almost nothing about the Russian market. An equal share of Indian businesspeople acknowledge this. These are the findings of a survey of entrepreneurs from Russia and India conducted by the Skolkovo Moscow School of Management.
Key Aspects of Perception
Indians about Russians:
– 47% admit that they know almost nothing about Russian business
– but at the same time consider it reliable and resilient
– note a strong advantage: education, especially in the exact sciences
– value a long-term approach and unconventional thinking
Russians about Indians:
– 54% believe that Indians poorly understand the Russian market
– 52% doubt their reliability and adherence to agreements
– but acknowledge their entrepreneurial spirit and business acumen
At the same time, interest among entrepreneurs in each other’s markets is high, the study’s authors note:
“More than 61% of our respondents in India are considering options for doing business with Russia and opportunities related to Russia. 70% of Indian respondents would like to learn more about the opportunities of the Russian market, and more than 45% would like to have more opportunities to communicate with colleagues and potential partners from Russia.
<…> The majority of our Russian respondents are already cooperating with India and plan to expand this cooperation (more than 55%). They also mentioned that they would like to have more opportunities for interaction with colleagues and potential partners from India, and cited the lack of information, contacts, as well as language and cultural differences as the main obstacles to doing business with India.”
The barriers hindering the mutual development of businesses in both countries are the same:
– lack of information and personal contacts
– cultural and language differences
– difficulty in finding reliable partners
One of the key differences in the business cultures of the two countries is the role of the family in business. India is a global leader in the share of family business in national GDP (79% of the country’s GDP is accounted for by family enterprises), and this is clearly reflected in the way business is conducted in the country. In India, the family most often serves as the main source of support and trust. In Russia, however, entrepreneurs are much more likely to rely on themselves and are oriented toward quick results.
“Responding to the question about their most reliable and devoted supporters, respondents in India overwhelmingly (more than 71%) placed family members in first place, and friends (more than 27%) in second. Respondents in Russia answered that they rely only on themselves (42.9%), friends (38%), and family members (more than 33%),” the authors of the study write.
Attitudes toward time also differ: while speed and strict deadlines are important in Russian practice, in India there is much greater tolerance for lengthy negotiations and the gradual development of relationships.
As a result, an interesting combination emerges: the countries are in many ways similar in mindset—flexibility, creativity, a long-term outlook—but build the business process itself differently.
This means that the key asset in this partnership is not money, but well-established relationships.
