World City Guide

Business

Business Profile
France is the fourth largest economic power in the world in terms of GDP and the second largest exporter of services and agricultural products. Paris and the Ile-de-France region are responsible for almost a third of the country’s total GDP. The Paris region is predominantly a service economy, followed in importance by commerce, industry, construction and agriculture. Particular strengths are in pharmaceuticals, telecommunications, publishing and research, with Paris ranking first in Europe in terms of research development. Five of the French banks (including Crdit Agricole, BNP and the Caisse d’Epargne) are among the main commercial banks in Europe.

The excellent transport and telecommunications network, highly skilled workforce, quality of life and prestige of Paris have encouraged companies to locate in the city. Many top international companies, including Sony, IBM, Hewlett Packard France, Siemens and Motorola have a presence in Paris and around 40 companies base their international headquarters here. In total, the French capital has attracted about 2,400 foreign companies and numerous foreign banks.

Paris rates among the world’s most popular international conference venues. Its thousand-plus annual conventions include over 300 international conferences and 300 trade shows. Tourism is vitally important to the city’s economy with 22.5 million international overnight stays in 2003. Terrorism scares and global instability have hindered visitor numbers in recent years. Paris is still one of Europe’s major tourist drawcards, with the world’s biggest industry still crucial to the city.

The economy in general is not in a buoyant state at the moment. Both the capital and the country’s unemployment rates have risen since 2002. Unemployment by the end of 2003 was running at 9.1% in Paris and there are said to be nearly 50,000 homeless people on the streets and in the mtro stations. The national unemployment rate is similar, standing at 9.6%.

The main business districts are located in the 8th around avenue des Champs-Elyses, 2nd, where the Bourse (Stock Exchange) is located near to rue de la Banque in a grand First Empire building and the smart 16th arrondissement. The futuristic business district of La Dfense is home to the huge CNIT exhibition hall and Elf, Gan and Fiat.

There are a number of Internet cafes dotted around the city. Some of the most convenient are located at Access Academy, 60-62 rue Sainte-Andr-des-Arts, 6th; Baguenaude Caf, 30 rue de la Grande-Truanderie, 1st and Meilleur des Mondes, 4 bis, rue Michel-Chasles, 12th. Look out also for free internet terminals in major railway stations.

Business Etiquette
A degree of Parisian aggression and plenty of persistence is necessary when attempting business in the capital. However, firmness, not rudeness, is in order. At the first meeting, non-French speakers should apologise for their lack of linguistic aptitude and respect the local formality, addressing colleagues with the appropriate Madame, Monsieur, Professeur or Docteur followed by the surname and a handshake. Business cards (preferably in French and English) should be presented. Small talk is an essential part of doing business, so it is wise to do a quick refresher on French politics and culture prior to the meeting and not to rush straight to talk of business. Smart, conservative dress is recommended.

Standard business hours are Monday to Friday 0830/0900-1800/1900. Lunches may last for two hours or more – it is best for one to schedule meetings at 1100 or 1500, unless for lunch itself. Business lunches, working dinners and breakfast meetings are common. There has, though, been a move in recent years away from boozy long lunches towards shorter less indulgent affairs. Whoever fixes the meeting is expected to settle the bill. Conducting business in August (during the Parisian exodus to the south) is to be avoided at all costs.