Cyborlink · International Business Etiquette
Latin America · Country Profile

Doing business in Guatemala

A working reference on Guatemalan business etiquette, culture, and cross-cultural communication — updated for the contemporary workplace.

GuatemalaCapital: Guatemala City
Language: Spanish, 22 Mayan languages
Currency: Quetzal (GTQ)
§ 01 — Orientation

Introduction

With a population of approximately 18 million, Guatemala is the most populous country in Central America. The ethnic composition consists of roughly 56 percent Ladino (mestizo and Europeanized), 42 percent Indigenous Maya (including K’iche’, Kaqchikel, Mam, Q’eqchi’, and other groups), with small Xinca, Garifuna, and European communities.

The Republic of Guatemala has a unicameral legislative house, called the Congress of the Republic. The president is both chief of state and head of the government. Voting is compulsory for all literate persons over the age of eighteen. The economy is primarily agricultural with main export crops of coffee, sugar, bananas, and cardamom.

Spanish is the official language. Over 40 percent of the population speaks one of 22 recognized Mayan languages used in the country’s interior. English is understood in tourist places. Approximately 42 percent of Guatemalans are Roman Catholic, with roughly 38 percent Protestant (mainly Evangelical and Pentecostal). Indigenous Maya spiritual practices continue alongside Christianity.

Fun Fact

Guatemala was the heartland of the ancient Maya civilization, and Tikal — one of the largest pre-Columbian cities ever built — remains a UNESCO World Heritage Site. Expect Guatemalan business people to believe in the “prosperity theology” of some Neopentecostal sects. These sects preach that God wants people to be wealthy, and that peasants are poor because they lack faith. The majority of Guatemalan maquiladoras (manufacturing plants) are Asian-owned, primarily by South Korean companies. Antigua Guatemala, the former colonial capital, is one of the best-preserved Spanish colonial cities in the Americas.

§ 02 — Cultural Analysis

Hofstede Analysis

Guatemala — Dimension Scores
Power Distance
95
Individualism
6
Masculinity
37
Uncertainty Avoidance
101
Source: Hofstede Insights. Four-dimension scores available.

Guatemala’s Hofstede profile displays extreme scores that make it one of the most distinctive countries in the Hofstede dataset.

Guatemala has the highest Uncertainty Avoidance (UAI) Hofstede Dimension ranking of all Latin countries at 101, indicating the society’s extremely low level of tolerance for uncertainty. Strict rules, laws, policies, and regulations are adopted and implemented to control everything and eliminate the unexpected. The society does not readily accept change and is very risk averse.

Guatemala also is tied with Panama for the highest Power Distance (PDI) ranking among Latin countries with a 95, compared to an average of 70. This is indicative of a high level of inequality of power and wealth within the society. This condition is not necessarily subverted upon the population, but rather accepted by the culture as a whole.

Guatemala has the lowest Individualism (IDV) ranking at 6, compared to other Latin countries (average 21). The society is intensely Collectivist — loyalty to family and group overrides virtually all other considerations.

Of special note is that Guatemala has the largest divergence of Power Distance (PDI) to Individualism (IDV) of any country surveyed in the world, with a difference of 89 (PDI 95 minus IDV 6 = 89). Panama is next with 84 and Malaysia third with 78.

In many of the Latin American countries, including Guatemala, the population is predominantly Catholic. The combination of Catholicism and the cultural dimensions reinforce a philosophy predicated in the belief that there is an absolute “Truth.” As Geert Hofstede explains about peoples with a high Uncertainty Avoidance Index, their attitude is, “There can only be one Truth and we have it.”

Read the full Hofstede framework →

Religion.  Approximately 42 percent of Guatemalans identify as Roman Catholic and roughly 38 percent as Protestant (primarily Evangelical and Pentecostal). Indigenous Maya spiritual practices persist, sometimes blended with Christianity in a form of religious syncretism. Some business people subscribe to the “prosperity theology” of Neopentecostal sects, which equates wealth with divine favor. In our study of predominantly Catholic countries, we found the primary correlating Hofstede Dimension to be Uncertainty Avoidance (UAI). Only 2 countries out of 23 did not follow this correlation: Ireland and the Philippines.

§ 03 — Dress & Presence

Appearance

Dress, clothing,
body language
& gestures
  1. For business, a lightweight suit is appropriate for men; women should wear a dress or skirt and blouse. Military clothing is illegal; it can neither be worn nor brought into the country.
  2. Guatemalans wave good-bye using a gesture that looks like someone fanning themselves: hand raised, palm toward the body, and a wave of the fingers back and forth, with the fingers together as if encased in a mitten.
  3. The “fig” gesture (thumb-tip protruding from between the fingers of a closed fist) and the “O.K.” sign (thumb and forefinger forming a circle) are both considered obscene.
§ 04 — Conduct

Behavior

Dining, gifts,
meetings &
general conduct
  1. Business people are usually punctual.
  2. Male guests sit to the right of the host; women to the left.
  3. Business breakfasts or lunches are preferred to dinners.
  4. The main meal of the day is taken at noon, and will probably include black beans, tortillas or meat, and fruit and vegetables.
  5. Gifts are given in a business setting, but not necessarily on the initial visit. Easily breakable gifts may not be the best choice; Guatemala is in a tectonically active zone, with frequent earthquakes and occasional volcanoes.
  6. Don’t give white flowers; they are reserved for funerals.
§ 05 — Communication

Communication

Greetings,
introductions &
conversation
  1. Shaking hands and saying “mucho gusto” is very proper.
  2. The handshake may seem limp, which is customary.
  3. Close friends embrace and pat each other’s back.
  4. Titles, especially among the elderly, are very important. Address a person directly by using his or her title only: Doctor, Profesor, Ingeniero, Arquitecto, Abogado. Without a professional title, use Señor, Señora, or Señorita plus the surname.
  5. Most Hispanics have two surnames: one from their father, which is listed first, followed by one from their mother. Only the father’s surname is used when addressing someone.
  6. Speaking softly is considered the polite thing to do.
  7. Social conversation before business is the custom.
  8. Good conversation topics: Guatemalan geography, Mayan history and culture, Antigua, Tikal.
  9. Topics to avoid: politics, civil war era, human rights, racial tensions.
§ 06 — Further Reading

Resources

Government & Data

News & Culture

Cultural Framework