Comparison of Business in the US and Europe: A Financial Guide

When working in the corporate sector, people grow by leaps and bounds. However, what most people don’t understand is that the business culture is different everywhere. For example, the business culture in the Middle East is entirely different than that in the UK. Similarly, the business culture in Europe is quite different from that in the US. 

Many people argue the aforementioned as they believe the business culture is the same throughout the west when in reality, it isn’t. In this article today, we’re going to review and compare the business culture in the US and Europe. If anything, it will help you understand what you’re cut out for and whether you should have your business in the US or Europe. 

Business Culture in the US 

The United States of America is a friendly state when it comes to setting up your business. To set up your business in the USA, all you need is a smart business plan, adequate funds, state and federal tax IDs as well as permits and licenses. Though there are a few terms and conditions about staying legally compliant in the US, it isn’t really a cumbersome or difficult process. 

Regarding the business culture, businesses in the US solely focus on customer service. Americans value their customers and thanking them for being a part of their venture is considered to be extremely important over there.

In fact, according to Marketing Week, customers have high expectations when it comes to businesses in the US. They expect more from American brands and because of that, brands in the US keep evolving and upgrading. However, there’s a lot of competition in the US. It is one thing that makes doing business in America tricky. Due to a large population and established nearby states, the American market is quite mosaic.

Moreover, businesses in the US lack the element of comfort and that’s perhaps the only downside. Due to the competition around, they remain functional throughout the year and the idea of holiday leaves isn’t appreciated much. It is further said that businesses in the US don’t pay well for holiday leaves compared to those in the UK. 

Businesses in the UK offer at least five weeks of paid holidays annually while businesses in the US offer only 10-14 paid leaves throughout the year. According to their business law, workers are not entitled to paid leaves; therefore, there’s no point in challenging the employer to give you more paid vacations. It is another downside as it makes the lives of workers in the US pretty robotic.

Business Culture in Europe

Europe is home to many states and each state has a different business culture; however, there are a few things that remain common among them. What you need to note here is that starting up a business in Europe is relatively difficult compared to the US. The reason is that obtaining permits and getting the business registered in Europe is a tiring process. 

As for business culture, Europe isn’t as advanced as the US. Most of the businesses in the US are online but it isn’t the same for Europe. European countries like Germany and France prefer face-to-face business meetings in order to establish trust. Not to mention, they strictly follow the hierarchy, which means decisions are only taken once the executive analyzes everything and gives it a thumbs up. 

Furthermore, Europeans are very casual about their business attire while Americans are totally the opposite. Europeans prefer formal clothing when it comes to attending a business meeting, whether you’re meeting an employer or a customer. They’re more focused on business strategy than customer service. 

Although customer satisfaction may be the same in the US and Europe, people generally don’t expect much from European brands, which gives an edge to Americans. Apart from that, holidays are very important to Europeans. They have strict rules about not working on holidays, especially in France. Not to forget, they get at least a month of paid holidays annually. 

The Bottom Line…

Comparing the business culture in the US and Europe, it would be best to say that Europeans focus more on their comfort while Americans solely focus on the customer experience. They work throughout the year and making money is an important part of it. Besides that, the US takes the lead for the ease of doing business. Even though they have strict business laws, they encourage doing business more than Europeans do; therefore, they’re usually the first choice of most people.