Business
Business Profile
In addition to being the capital, Vienna is Austria’s economic powerhouse 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 EU. One-quarter of Austria’s workforce is employed in the city and the Vienna area generates approximately 28% of the country’s GDP. Around 40% 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%, compared with the national average of 6.3%. 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% 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% 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 to strangers. 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 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, with many offices closing slightly earlier on Friday at 1500/1600. 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, however.
Austrians tend to keep work and social life separate. Overtime and weekend work is 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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Business