Balazs Kohut: Hungary is the heart of the continent
At the SiGMA East Europe conference today, Balazs Kohut, Extraordinary and Plenipotentiary Ambassador, highlighted the key opportunities and challenges in the global business environment. He underscored the crucial role of both technology and human relationships in driving successful international ventures.
Central and Eastern Europe: A Strategic Economic Gateway
Kohut began by emphasizing the strategic significance of Central and Eastern Europe, referring to it as the “heart of the continent.” This region acts as a vital gateway between East and West, offering businesses access to a diverse and growing market. He noted that domestic consumption is increasing across all sectors, creating significant opportunities for companies aiming to expand their operations.
Kohut also highlighted that Central and Eastern Europe offers more than just interconnected markets; it features a distinctive business mindset rooted in its rich cultural heritage. He stressed that understanding this local business culture is crucial for companies looking to enter or grow within these markets.
Hungary: A business-friendly environment
Balazs Kohut showcased Hungary as a key example of the region’s potential, offering a detailed look at the country’s business climate. He pointed out that Budapest is consistently ranked among the most livable and business-friendly cities in Central and Eastern Europe. As an EU member, Hungary provides the stability and regulatory benefits of the European Union, while also acting as a strategic gateway to Eastern European markets.
Kohut praised Hungary’s attractive tax regime, which features a corporate tax rate of just nine percent—the lowest in the EU—alongside social contributions at 13 percent and personal income tax at 15 percent. These favorable tax rates, coupled with efficient online company registration processes, make Hungary a compelling destination for entrepreneurs and investors. Kohut highlighted that these elements contribute to a competitive, business-friendly environment that fosters 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 building mutual respect and understanding through personal introductions is essential when working with local business partners. This approach goes beyond merely presenting business credentials and involves sharing personal stories and intentions. He noted that this cultural nuance has long been a cornerstone of business practices in the region and continues to be a crucial element of successful interactions today.
Emerging business opportunities in Central and Eastern Europe
Kohut also pointed out the burgeoning opportunities in cities like Warsaw, which are rapidly becoming centers for industries such as lottery, iGaming, and gambling. He observed that while these sectors are expanding quickly, success hinges on partnering with the right local stakeholders and comprehending market dynamics. Kohut urged businesses to focus on forging robust relationships and adapting to the local business environment to fully leverage these emerging prospects.
Kohut concluded his keynote by stressing the need to adapt to the shifting global business environment through a nuanced understanding of both technological advancements and human behavior. He expressed optimism that Central and Eastern Europe, with its strategic position and favorable business climate, is poised to play a crucial role in this evolution.
His address showcased the region’s potential to emerge as a significant global business player, provided companies are open to engaging with its distinctive business culture. Kohut’s insights highlighted the importance of integrating human factors with technical and regulatory aspects. As the global economy evolves, Central and Eastern Europe is well-positioned to offer extensive opportunities for those ready to invest and adapt to its dynamic landscape.
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