Speaking at the SiGMA East Europe conference today, Balazs Kohut, Extraordinary and Plenipotentiary Ambassador highlighted the significant opportunities and challenges in today’s global business landscape, emphasizing the importance of technology and human relationships in shaping successful international ventures.
Central and Eastern Europe: A strategic economic gateway
Kohut began by underscoring the strategic importance of Central and Eastern Europe, which he described as the “heart of the continent.” This region serves as a crucial gateway between East and West, providing businesses with access to a diverse and expanding market. According to Kohut, domestic consumption is on the rise across all sectors in the region, presenting substantial opportunities for companies looking to expand their operations.
Kohut pointed out that Central and Eastern Europe is not just about connected markets; it also boasts a unique business mindset rooted in its rich cultural heritage. He emphasized that understanding this local business culture is essential for companies seeking to enter or expand in these markets.
Hungary: A business-friendly environment
Highlighting Hungary as a prime example of the region’s potential, Balazs Kohut shared insights into the country’s business environment. He noted that Budapest, the capital of Hungary, is frequently ranked among the most livable and business-friendly cities in Central Eastern Europe. As a member of the European Union, Hungary offers the stability and regulatory advantages of the EU, while also serving as a strategic entry point to Eastern European markets.
Kohut highlighted Hungary’s attractive tax regime, which includes a corporate tax rate of just nine percent—the lowest in the EU—along with social contributions at 13 percent and personal income tax at 15 percent. These favorable tax rates, combined with streamlined online company registration processes, make Hungary an appealing destination for entrepreneurs and investors. Kohut emphasized that these factors create a competitive and business-friendly environment that supports growth and innovation.
The role of human relationships in business success
While Kohut praised the economic and regulatory advantages of Central and Eastern Europe, he also stressed the importance of understanding the region’s unique approach to business relationships. He explained that business in Central and Eastern Europe is deeply rooted in human connections and soft skills, which are often just as important as financial metrics.
Kohut emphasized that establishing mutual respect and understanding through personal introductions is crucial when engaging with local business partners. This approach involves not only presenting one’s business credentials but also sharing personal stories and intentions. Kohut noted that this cultural nuance has been a consistent aspect of business practices in the region for centuries, and it remains a key element of successful business interactions today.
Emerging business opportunities in Central and Eastern Europe
Kohut also highlighted emerging opportunities in cities like Warsaw, which are becoming hubs for industries such as lottery, iGaming, and gambling. He noted that these sectors are experiencing rapid growth, but success depends on finding the right local partners and understanding market dynamics. Kohut encouraged businesses to invest in building strong relationships and adapting to the local business environment to fully capitalize on these opportunities.
Kohut concluded his keynote by reiterating the importance of adapting to the evolving global business landscape through a deep understanding of both technological advancements and human behaviour. He expressed confidence that Central and Eastern Europe, with its strategic location and business-friendly environment, will play a pivotal role in this transformation.
Balazs Kohut’s address highlighted the region’s potential to become a major player in global business, provided that companies are willing to engage with its unique business culture. The insights from his keynote underscored the need for businesses to embrace the human element of international ventures, alongside the technical and regulatory considerations. As the global economy continues to evolve, Central and Eastern Europe stands ready to offer a wealth of opportunities for those prepared to adapt and invest in this vibrant region.
