Doing Business in Sweden | Navigating Business Culture

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Sweden, formally The Kingdom of Sweden, lies in the Scandinavian region of Europe and borders Norway to the West and Finland to the East. It is the largest Nordic country by area and has a relatively small population of approx. 10.6 million. The country has three metropolitan areas consisting of the areas surrounding the three largest cities, Stockholm, Gothenburg and Malmö.

The Swedish population has been largely indigenous throughout history, but recent waves of migration have begun to transform Sweden into becoming more ethnically diverse than ever before. Modern Swedes pride themselves on being champions of human rights, equality and tolerance, reflected in Sweden’s strong social welfare system and history of neutrality.

Sweden has one the world’s most highly developed post-industrial economies, with low rates of unemployment and a large highly skilled workforce. Over 80% of the workforce are employed in the services sectors, contributing over 65% to the country’s GDP. Sweden is also rich in natural resources.

Swedish is the official language of Sweden and English is widely spoken and recognised especially in matters of business and trade; however, it is not an official language. There are five recognised and protected minority languages: Finnish, Meänkieli, Romani Chib, Sami and Yiddish. These tend to only be spoken by members belonging to their respective communities and expats usually do not encounter them.

The Swedish concepts of ‘Lagom’ (the middle way) and modesty are deeply ingrained in Swedish culture and has influenced many aspects of Sweden, from the architecture to the welfare system and business management style. The Swedish proverb “Lagom är bäst” roughly translates to “Enough is as good as a feast”, this encourages the idea that one should be satisfied with one’s lot, and exercising moderation is always the best option. This concept has greatly influenced the functionality of Sweden’s welfare system and overall harmony of its communities. Lagom can also be seen as taking a risk-aversion route and not standing out too much from the crowd. For this reason, Swedes may tend not to be too flashy or loud, and boasting is frowned upon. However, many young Swedes have begun moving away from the concept of Lagom as it is viewed as more of a traditional aspect of Swedish culture.

Influenced by the concept of Lagom, Swedish organisations also tend to be more egalitarian, flat structured and less hierarchical than elsewhere in Europe. Pragmatism is favoured above all else, allowing individuals to complete their tasks as efficiently as possible without much interference, and subordinates are more able to conduct negotiations and close deals independently. Many Swedish businesses take pride in creating warm, welcoming environments in the workplace, with employee satisfaction and empowerment a point of pride in many Swedish organisations. Swedish organisations also tend to favour matrix management, allowing for greater freedom of information and open communication. Swedes also highly value the importance of punctuality; tardiness is frowned upon and seen as unprofessional.

Due to the egalitarian nature of Swedish organisations, the Swedish management model views managers more as coaches rather than authoritarian figures. It is the manager’s job to guide their team members in the right direction, but to allow them space to get there on their own. It also means that individuals are expected to solve any unexpected problems as and when they arise without consulting with their manager. The manager and/or team leader is usually the final authority in any decisions that are made, however they are not expected to dominate discussions or make team decisions on their own. Swedish management is consensus-driven, but leaders do make decisions when needed, particularly in larger corporations where efficiency is required. While subordinates usually downplay their achievements and do not expect praise for their work, positive feedback is always useful in fostering a more friendly and warm environment, which is favoured across Sweden. Transparency and trust are key features of a good Swedish manager, while confrontation and exclusivity are uncommon and looked down upon in Swedish organisations.

Meetings usually get right down to business with little small talk. Swedes generally dislike superficial conversations. It’s unrealistic to expect initial meetings to lead to immediate decisions. Facts and figures are crucial and allow for sufficient time for questions and clarification.

Swedes are participative in nature, which helps avoid confrontation as time is given for everyone’s thoughts to be heard. Swedes are quite direct when speaking and tend to get straight to the point. This means they are reasonable negotiators and rarely use high-pressure or aggressive tactics. They are co-operative listeners. Rational, clear, factual and logical arguments are considered to be the most acceptable. They value getting things done and any attempt to add emotional arguments tends to be perceived as a weakness.

Traditionally Swedes do not show much physical contact in public, even with those they are close too. They enjoy their personal space, and you will not see strangers in Sweden standing too close to one another in public, for example on public transport however this is slowly beginning to change with the younger generation. In the workplace, eye contact is very important, as avoiding it will lead a Swede to believe you’re not interested in the conversation.