Why Entrepreneurs Like Houssam Abiad Need To Understand Cultural Sensitivity And Its Impact on Business

Understand Cultural Sensitivity And Its Impact on Business

Entrepreneurship is about innovation, taking risks, and turning a unique vision into a successful business. However, a critical factor that many entrepreneurs tend to overlook is the importance of cultural sensitivity. In today’s globalized marketplace, where borders are becoming increasingly blurred and societal boundaries are melting, Houssam Abiad agrees that cultural sensitivity is essential for entrepreneurs who want to succeed in today’s diverse business environment. Here are the top reasons as to why entrepreneurs need to understand cultural sensitivity and its impact on business.

1. Recognition And Appreciation For Cultural Differences

In a world where people come from various cultural and ethnic backgrounds, understanding and appreciating different cultures is critical when doing business. Entrepreneurs must learn their target culture’s customs, traditions, and norms. Failure to do so can result in misunderstandings, poor communication, and lost business opportunities. Understanding and respecting cultural differences can help entrepreneurs avoid offending their potential customers and to also help build better relationships with them.

2. Lets Entrepreneurs Adapt To Local Business Practices

Entrepreneurs must adapt to different business practices, particularly when setting up a business for the first time in a new region. The same can be said when one is just expanding. For instance, personal relationships are more valued in some cultures than business contracts, while formality and protocols, on the other hand, are crucial in others. Understanding local customs and practices can help entrepreneurs build rapport with local businesses, gain a better foothold in the local market, and improve their reputations.

3. Allows For Better And More Effective Communication

Effective communication lies at the heart of any successful business. However, it is impossible to communicate effectively with people from different cultures without understanding the cultural nuances and differences. Language barriers can be a significant barrier to effective communication. By learning about local languages and artistic expressions, entrepreneurs can build relationships with foreign customers and communities and ultimately find success in their ventures.

4. Helps One Avoid Cultural Faux Pas

Cultural faux pas can damage business relationships and hurt entrepreneurs’ reputations. For instance, in some cultures, eating with one’s left hand or showing the sole of one’s feet is offensive. By being aware of such practices and taboos, entrepreneurs can avoid making inadvertent cultural mistakes that could lead to lost business opportunities or ruined business relationships.

5. Builds Solid And Authentic Businesses

Successful businesses are built on solid and authentic relationships. Cultural sensitivity is crucial in building these relationships, particularly with customers, partners, and suppliers from different cultural backgrounds. By showcasing a genuine interest in other cultures, entrepreneurs can establish trust, promote goodwill and create an environment of respect, which can translate into long-term business growth and profitability.

6. Lets You Stay Ahead Of The Competition

In today’s business climate, where every entrepreneur is looking for an edge, understanding cultural sensitivity can give entrepreneurs a competitive advantage. Entrepreneurs who take time to understand customers’ needs, preferences, and cultural backgrounds are better positioned to provide products and services tailored to their needs. By leveraging this knowledge, entrepreneurs can stay ahead of competitors and create a sustainable business model.

7. Expand Business Horizon Globally

Entrepreneurship is not limited to national boundaries; many entrepreneurs seek to grow their businesses globally. However, expanding internationally requires an understanding of international cultures. This is where cultural sensitivity plays a critical role. By understanding and respecting cultural differences, entrepreneurs can navigate the complexities of global markets, identify new opportunities and build successful businesses that survive and thrive internationally.

8. Develops A Robust Corporate Culture

A strong corporate culture is essential for any successful business. By understanding different cultural backgrounds, entrepreneurs can create an inclusive corporate culture that fosters creativity and innovation while respecting diversity and individual differences. This type of corporate culture keeps employees motivated and attracts top talent, which can help reduce employee turnover.

9. Builds Bridges In A Multicultural Business Environment

The business landscape is rapidly evolving, with more people coming from different cultures and backgrounds entering the workforce. To ensure success in this type of environment, entrepreneurs with the ability to understand cultural differences are better equipped to bridge gaps between different cultures. This can help foster collaboration among team members and create an inclusive working environment. It also allows entrepreneurs better manage cross-cultural teams while maintaining productivity.

10. Increases Brand Loyalty Through Meaningful Engagements

Customers are more likely to be loyal to a business that respects their culture and values. By learning about different cultures, entrepreneurs can create campaigns and activities that are culturally relevant and tailored to customers’ needs. This helps build stronger customer relationships, enhances customer engagement, and increases brand loyalty in the long run.


In today’s global economy, where cultural diversity is the norm, cultural sensitivity is essential for entrepreneurs, says Houssam Abiad. Understanding, respecting, and valuing cultural differences can benefit entrepreneurs in many ways. Being sensitive to other people’s cultures can help you communicate with different nationalities, develop healthier work relationships in your own business, prevent cultural misunderstandings, and adapt to local business practices. But the best thing about cultural sensitivity is that it can help entrepreneurs not just stronger but also more authentic businesses that could give them the potential to expand their operations globally.

Entrepreneurs who take the time to learn about cultures and their impact on business are better positioned to succeed in today’s diverse business environment and build sustainable businesses that thrive.


Please enter your comment!
Please enter your name here