Cyborlink · International Business Etiquette
Latin America · Country Profile

Doing business in Ecuador

A working reference on Ecuadorian business etiquette, culture, and cross-cultural communication — updated for the contemporary workplace.

EcuadorCapital: Quito
Language: Spanish, Quechua
Currency: U.S. Dollar (USD)
§ 01 — Orientation

Introduction

Ecuador has a population of approximately 18 million people with an ethnic composition of roughly 72 percent mestizo, 7 percent Indigenous (primarily Quechua and Shuar), 6 percent Afro-Ecuadorian, and 6 percent white. The population is roughly evenly split between the coastal lowlands (Guayaquil region) and the Andean highlands (Quito region), with a smaller population in the Amazon basin.

The Republic of Ecuador is a unitary multiparty republic with a unicameral National Assembly. The president is both chief of state and head of government and serves a four-year term.

Spanish is the official language; however, Quechua is widely spoken among Indigenous communities and the constitution recognizes Indigenous languages in their areas of use. Many business people understand English. The vast majority (approximately 74 percent) of Ecuadorians are Roman Catholic. The Ecuador constitution guarantees freedom of religion. Ecuador adopted the U.S. dollar as its official currency in 2000, which simplifies many business transactions for American visitors.

Fun Fact

Ecuador has the most intensely varied landscape in South America. You get it all here: the colossal Andes, the Amazon rainforest, Pacific beaches, and the natural paradise of the Galápagos Islands — one of the world’s most important natural heritage sites. Ecuador is named for the equator, which crosses the country just north of Quito. The country uses the U.S. dollar as its official currency, having adopted it in 2000 to stabilize its economy.

§ 02 — Cultural Analysis

Hofstede Analysis

Ecuador — Dimension Scores
Power Distance
78
Individualism
8
Masculinity
63
Uncertainty Avoidance
67
Source: Hofstede Insights. Four-dimension scores available.

The Geert Hofstede analysis for Ecuador is similar to other Latin American countries where there is very large Power Distance, strong Uncertainty Avoidance, and low Individualism. This is indicative of a society with significant inequalities of power and wealth. There is a high concern for rules, regulations, and controls, and a high emphasis placed on close ties with individuals and relationships.

Ecuador’s highest Hofstede Dimension is Power Distance (PDI), with a ranking of 78. This high Power Distance is indicative of a high level of inequality of power and wealth within the society. This condition is not necessarily subverted upon the population, but rather accepted by the society as their cultural heritage.

Uncertainty Avoidance (UAI) is Ecuador’s second highest Dimension ranking at 67, indicating the society’s low level of tolerance for uncertainty. Strict rules, laws, policies, and regulations are adopted and implemented to control everything and eliminate the unexpected.

Ecuador has one of the lower Individualism (IDV) rankings (8), compared to other Latin countries (average 21). The score indicates the society is intensely Collectivist — manifest in a close long-term commitment to family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount and overrides most other societal rules.

Ecuador has one of the highest Masculinity rankings in Latin America (63), indicating a high degree of gender differentiation of roles, though women are making steady advances in professional life in major cities.

Read the full Hofstede framework →

Religion.  Approximately 74 percent of Ecuadorians identify as Roman Catholic, though active participation varies by region and generation. Evangelical Protestantism has grown significantly, now representing roughly 15 percent. The constitution guarantees freedom of religion. In our study of predominantly Catholic countries, we found the primary correlating Hofstede Dimension to be Uncertainty Avoidance (UAI). Only 2 countries out of 23 did not follow this correlation: Ireland and the Philippines.

§ 03 — Dress & Presence

Appearance

Dress, clothing,
body language
& gestures
  1. Formality increases as you move inland. In Quito and other highland cities, business dress should be conservative. Men should wear dark suits and women should dress conservatively and modestly — a suit or dress. Coastal Guayaquil is slightly more relaxed.
  2. Ecuadorians stand closer together when conversing than North Americans.
  3. It is considered impolite to yawn or point at others in public.
  4. Nervous, repetitive movements (toe tapping, knee jiggling, thumb twiddling, and so forth) should be minimized — Ecuadorians find them annoying.
§ 04 — Conduct

Behavior

Dining, gifts,
meetings &
general conduct
  1. Make appointments about two weeks in advance.
  2. Have business cards printed in English on one side and the translation in Spanish on the other. Present the card with the Spanish side facing your Ecuadorian colleague.
  3. Lunch is the customary time for the main meal and is the usual business meal. Ecuadorians are used to alcohol with lunch.
  4. Women should note that while it is acceptable to drink wine, Ecuadorians are not accustomed to seeing a woman drink whiskey or other hard liquor.
  5. If a businesswoman wishes to pay for an Ecuadorian man’s meal, arrangements should be made ahead of time, otherwise the man will refuse to let her pay.
  6. If you are given a gift, be very effusive in your thanks.
  7. Fine wines and liquors make good gifts. Avoid lilies and marigolds, which are used at funerals.
  8. Let the host make the toast first, then you may wish to make one.
§ 05 — Communication

Communication

Greetings,
introductions &
conversation
  1. Handshaking is common when arriving and when leaving.
  2. Men friends embrace and women friends kiss on the cheek.
  3. Titles are important and should be included on business cards. Address a person directly by using his or her title only: Doctor, Profesor, Ingeniero, Arquitecto, Abogado. Without a professional title, use Señor, Señora, or Señorita plus the surname.
  4. Most Hispanics have two surnames: one from their father, which is listed first, followed by one from their mother. Only the father’s surname is used when addressing someone.
  5. The Galápagos Islands are a great source of national pride and a safe conversation topic.
  6. Good conversation topics: family, culture, history, the Galápagos, local cuisine.
  7. Topics to avoid: politics, U.S. political influence, relations with Peru.
§ 06 — Further Reading

Resources

Government & Data

News & Culture

Cultural Framework