France, with its 20 unicorn companies, is the European destination country that attracted the most foreign investors in 2019 (source: EY). It is very positive about welcoming German startups to enable the emergence of future European champions.
Even though France and Germany have a long shared history as neighboring countries, a successful market entry in France requires knowledge of the country's cultural peculiarities.
Lack of knowledge of German culture among French people
In general, the French aren't very familiar with German culture and are often subject to one or another prejudice. Very few know the history of the German nation and the strong cultural differences between our various federal states. They tend to confuse things. They envy Germany's economic success, but not our way of life (gastronomy, monotony). So, it's a matter of overcoming these clichés right from the first contact.
While we insist on reliability, risk measurement, and profitability when launching a new project, the French are more interested in the innovative side of the project and don't want to go into too much detail at the beginning. The French are much more attached to the concept and risk appetite than to the security and risk aversion that are typical for us.
At the beginning of the relationship, it is therefore extremely important to convey this vision of the future to your future partner.
Creative does not mean chaotic
We're used to saying that Germans never stray from the mold, while the French are very creative. Therefore, you might be surprised by the chaotic side of your interlocutors during your first encounters. You'll get the feeling that they're striving in all directions without any common thread. Don't let this surprise you.
While we may be better organized through our upbringing, they are undoubtedly more inventive and feel more comfortable in complex relationships.
Knowledge of culture and economy as a key to success
The French are more attached to their own identity than we are to it and, in a way, proud of it. They value their history, their country, their culture, their republic, their milder climate than ours, and, of course, their way of life: "Living like God in France."
This knowledge of French culture is your key to success in establishing trusting relationships. Show interest in your conversation partners and their interests.
Let's take an example of the cultural differences between the two countries: While staying late at the office can be viewed negatively as a sign of disorganization in our country, working overtime in France is a sign of commitment.
Knowledge of the French economic structure is also an important element in ensuring the success of your partnership and/or establishment in France. Two organizations can help you with this:
- Business France is a French public institution that can support you in setting up a business in France.
- In 2013, the French government French Tech launched, an ecosystem that brings together startups, investors and decision-makers.
The main difference between the French and German economic structures is the very strong centralization of economic actors in Paris and its region. Even though the government is taking many initiatives towards decentralization, it must be recognized that France is currently still very much Paris is concentrated.
Discussions and negotiations
While we maintain an open, direct and sober tone of communication, communication in France is more indirect, ambiguous and uses more extensive euphemisms.
Although it has improved significantly in recent years, the English level of many French people is sometimes far below expectations. It is therefore advisable to bring as much written and graphical information as possible. A combination of lecture and visual elements (flipcharts, etc.) is also very useful.
Decision-making processes in France also take longer. Don't let this worry you; instead, consider these factors when planning your actions.
"Made in Germany" is highly regarded in France. In universities, companies, and in the speeches of executives, the German economy is often cited as a model and envied. You will therefore receive a warm welcome.
Final tips
- Always show your French partners that you respect them and their culture.
- Don’t be too direct in your communication with your conversation partners.
- Don't expect a decision to be made as quickly as you imagine.
Conclusion
Since the election of Emmanuel Macron in 2017, France has embraced a pro-business agenda: labor laws have been reformed, tax cuts have been introduced, and new regulations have been adopted—including the introduction of the world's best "Startup Talent" visa. France doubled the number of "unicorn startups" in the first half of 2019. With its long history of innovation and value creation, the French government has earned a strong reputation as a supporter of startups.
And if you'd like to network with Franco-German entrepreneurs, freelancers, and employees from a wide range of companies here in Munich, you're welcome to join us at the Franco-German Business Club in Bavaria. Our events and company visits always focus on a business topic, followed by ample opportunities for networking. Our "NextGen" junior group is specifically aimed at graduates and young professionals with a Franco-German background. You can find more information at www.clubeco.de or simply follow us on LinkedIn.
