December 20, 2023

Interview with Paulo Garcia: “Bet on Mexico goes through innovation”

Portuguese people who stand out abroad are helping to find out where business opportunities are and what kind of companies and activities the country can attract. An initiative that brings together Negócios and the Portuguese Diaspora Council.

1- What led you to leave Portugal?

I have always wanted to explore other cultures and meet new people and countries. The “bug” started when at University I participated in the student exchange program (Erasmus) and went to study for 6 months in Tilburg in the Netherlands.

In fact, from an early age I had the ambition to work in other countries. I worked in Portugal for five years and have been abroad for over 20 years, passing through Latin America, Holland, Spain, Poland, Holland again and now Mexico.

I love our country and everything it has to offer, but the truth is there aren’t that many global companies in Portugal and there comes a certain point when the horizons for professional growth become reduced. I was always clear that, if I wanted to continue to grow professionally and take on more important positions, I would have to have experience abroad.

The fact that my first job was at Unilever, an Anglo-Dutch multinational, helped to create exposure to other cultures and above all to create the opportunity to work abroad. At Unilever, 20 years ago, anyone who did their job well and expressed a desire to work abroad had a reasonable chance of being expatriated.

Looking back today, I recognize that my career would have developed differently, and I probably would not have achieved what I achieved if I had always stayed in Portugal. Additionally, leaving Portugal allowed me to raise my family (my children) in a more global context, studying in international schools, becoming citizens of the world from a very early age, and therefore better prepared to explore the global world in which we live.

2- What advantages or disadvantages did being Portuguese bring you?

I tend to think that being Portuguese brought me advantages and disadvantages throughout my career, but I don’t believe that at any point they were decisive for my evolution.

When working in companies in Northern and Central Europe, being Portuguese (European periphery) can eventually be seen as a disadvantage given that the most responsible executive positions tend to be occupied by people of Northern European nationalities or by people from some countries of origin. major emerging markets.

The truth is that, when working in companies where meritocracy plays a very important role (performance is the most important), the cultural theme and country of origin tends to be reduced.

On the other hand, I have sometimes felt, especially now in Mexico, that, being Portuguese and consequently European, this can sometimes be seen as an advantage. They tend to see Europe as a much more developed continent, and a Portuguese person, as a result, can be seen with different eyes.

But, I repeat, after more than 20 years working abroad, I don’t feel that being Portuguese has harmed or benefited me.

3- What obstacles did you have to overcome and how did you do it?

I don’t think I’ve had to overcome very difficult obstacles throughout my career because I’m Portuguese, as I mentioned.

Obviously, when working in companies in northern Europe and being Portuguese, this creates a certain barrier from the outset. A Portuguese person ends up having to prove their merits in different positions and countries, in order to reach more relevant positions at European level.

But nowadays, most (if not all) companies move according to various performance criteria, which tends to reduce the potential (increasingly smaller) impact of the workers’ country of origin. Diversity, nowadays, increasingly plays an important role in all organizations, as it is statistically proven that the results of a diverse team are superior.

4- What do you admire most about the country you are in?

Several things: the culture, the food, the people, and the beaches.

Mexico is a fantastic country, with a lot to offer in terms of culture, gastronomy, and leisure. Combined with this, it is a country of more than 130 million inhabitants, with various natural resources, such as oil and natural gas, and benefits from the fact that it shares a border with the United States.

On a personal and professional level, it is quite easy to work with Mexicans because they come from a Latin culture like ours. When coming from the Netherlands to Mexico, I felt the cultural differences a little, as I came from an extremely direct culture to a much less direct and much more hierarchical culture. But I really enjoy working in the Mexican environment.

On a personal level, and with our family, we have taken the opportunity to get to know several beautiful areas of Mexico and take advantage of everything it has to offer.

The only disadvantage in Mexico when coming from Europe is related to security. But once you get used to it, the problem tends to disappear.

5- What do you admire most about the company/organization you work for?

The company culture that is ingrained in all workers, starting from the global CEO to the different workers in the retail stores we have.

It is a culture that was born from its founder – Sam Walton –, who was a visionary and established the purpose of this company: to help customers save money and live better; with values that are deeply rooted throughout the organization and a customer-centric culture.

I feel happy to be part of a company that in Mexico and Central America employs more than 240 thousand associates and that positively impacts more than 6 million people who visit us daily.

We work to provide access to products and services at low prices that customers can afford. It is a privilege to be part of this company and to be able to impact the lives of so many people every day.

6- What recommendations would you give to Portugal and its entrepreneurs and managers?

Portugal, being a small country, is full of quality entrepreneurs and managers who don’t necessarily need my recommendations.

I see with great pride and from a distance that Portugal currently stands out for being a hotspot for startups, with some of them becoming unicorns. And this is reflected in the notoriety and impact that the Web Summit had in Portugal. With the help of public and private entities, an ecosystem was created (agility in creating new companies, tax attractions, etc.) that facilitates the entrepreneurship of our (young) entrepreneurs.

I understand that our entities and our entrepreneurs have to continue investing in innovation and new technologies as a form of differentiation.

Additionally, we must invest in value-added services and automation and digitalization, as a way to increase the productivity of our companies. Only in this way can we continue competing with other countries with more resources.

7- In which sectors of the country where you live can Portuguese companies find clients?

Mexico is a country with enormous resources that has been growing steadily. And the next 10 years indicate that this will continue, benefiting from “nearshoring” and rising wages, as well as the consequent increase in disposable income for workers and families.

I think that Mexico is unknown to most Portuguese businesspeople today. Often with the perception that it is a place with a lot of volatility and a lack of security. The Opportunity is real!

Companies like Mota Engil have a large presence in Mexico. Portuguese companies that want to come to Mexico must invest in innovation and new technologies as a way of differentiating themselves. Knowledge has to be our bet for the future, and not the offering of low-value products and services.

8- In which sectors of Portugal could companies in the country where you live want to invest?

We live in a global world where synergies of scale are important. Portugal, due to its size, does not offer these economies of scale. But Portugal can be an attractive country for companies looking to invest in the European market, in a safe location and with relatively cheap labour costs. We have to continue to create the conditions to make it easy to attract this foreign investment. At the same time, we have to continue investing in innovation and new technologies, in order to be relevant and attract this foreign investment with a different proposal.

9- What is the competitive advantage of the country you are in that could be replicated in Portugal?

Mexico’s great competitive advantage derives fundamentally from 3 areas: a country with more than 130 million inhabitants, proximity to the USA (geographical border) and the various natural resources it possesses, namely oil, natural gas, ore. I don’t see that it is a competitive advantage that can be replicated in Portugal.

Portugal has been increasing its trade relationship with the United States over the years and is now one of our main importers of products.

Having said that, I believe that Portugal can, like Mexico, take more advantage of its geographical position and expand the transatlantic commercial relationship with the United States, especially now that there are beginning to be some problems in commercial relations between the United States and China.

10- Do you consider going back to Portugal? Why?

Yes, I think about going back. It’s my country, which I love, and the country where I plan to retire.

I always had Portugal on the horizon throughout my professional career, but there were few attractive opportunities to return, largely due to the rapid way in which my professional career developed abroad.

In the short and medium term, I still plan to stay abroad, where there are obviously more opportunities for development. But I am completely clear that I want to finish my career in Portugal, perhaps in a less active way and doing advisory work for large companies or startups. Time will tell.

Read the original article here.