New start-ups in Switzerland: 1st half-year and international comparison
In the first half of 2024, 27,109 new start-ups were recorded in Switzerland. This represents growth of +2.1% compared to the same period last year. These are the findings of the IFJ study "National analysis of Swiss start-ups in the first half of 2024". Based on the figures for 2023, the study also analyzed how Switzerland's start-up activity compares to that of neighboring countries.
The number of new start-ups in the first half of 2024 is positive. With 27,109 new companies founded, growth of +2.1% was recorded compared to the previous year. This corresponds to an average of 149 companies per day. The trend towards self-employment is still very much in evidence. And for good reasons: As a business location, Switzerland is attractive to start-ups thanks to its good infrastructure, government support programs and low corporate taxes, among other things. Innovation is encouraged, as the Global Innovation Index confirms. In 2023, Switzerland took first place for the 13th time. Switzerland has a high-quality technology start-up scene and the national development is positive. "A new Swiss start-up record in 2024 can therefore not be ruled out," confirms Simon May, Co-Managing Director of the IFJ.
Switzerland in international comparison with its neighboring countries
If you look across the border to neighboring countries, you will see an astonishing and as yet unknown picture for many. Switzerland lags behind in terms of the number of companies founded per 1,000 inhabitants and, at 5.8, ranks third to last among the countries surveyed, ahead of Austria and Italy. Liechtenstein emerges as the winner with 28.73 companies per 1,000 inhabitants. The reasons for this ranking are manifold: from structural differences, financial incentives, registration requirements and bureaucracy to government support programs. Another challenge for the number of start-ups in Switzerland is the high level of national and international competition. The Swiss market is comparatively small, multilingual and fiercely contested by established companies with strong positions. It should also be noted that the statistics focus on new registrations and do not include an assessment of the sustainability of companies; the survival rate of companies in Switzerland is relatively high, which is often not known.
International comparison in detail
The following overview lists the exact figures used as a basis for calculation. The research refers to national institutions, media and statistical offices of the respective countries.
New start-ups in Switzerland at a record high
In an international comparison, the current start-up figures in Switzerland are positive and reflect the current positive economic developments (e.g. low inflation, low unemployment figures, positive economic situation). The 10-year trend in Swiss company start-ups is clearly pointing upwards.
The IFJ's national analysis shows how company start-ups in the Swiss cantons and sectors have changed in the first half of 2024:
Start-up growth in almost all regions
In the first half of 2024, Southwestern Switzerland (+5.4%), Eastern Switzerland (+2.8%), Central Switzerland (+2.7%) and Northwestern Switzerland (+1.4%) are the major regions with the strongest growth. Only slight growth was recorded in the Zurich region (+1.1%). There was a slight decline in the Espace Mittelland region (-0.4%) and in Ticino (-1.6%).
Cantons at start-up peak
In 16 cantons, the number of new start-ups increased in the first six months of 2024 compared to the same period of the previous year. These are currently the cantons with the highest growth in Swiss company start-ups: Appenzell Ausserrhoden (+17.4%), Appenzell Innerrhoden (+14.8%), Vaud (+12.8%), Uri (+10.4%), Valais (+8.6%), Glarus (+6.4%), Zug (+6.2%), Thurgau (+4.8%), St. Gallen (+4.1%), Aargau (+2.9%), Schwyz (+1.1%), Zurich (+1.1%), Obwalden (+1.0%), Neuchâtel (+0.9%), Fribourg (+0.7%) and Basel-Stadt (+0.3%).
Fewer start-ups are currently being founded in these cantons
The cantons with only slight percentage decreases are Lucerne (-0.5%), Jura (-0.5%), Bern (-0.6%), Nidwalden (-1.2%), Graubünden (-1.3%), Basel-Landschaft (-1.3%), Ticino (-1.6%), Solothurn (-2.1%) and Geneva (-5.1%). The largest percentage decline in company formations was recorded in the Commercial Register Office of the Canton of Schaffhausen (-15.1%).
Legal forms in comparison
In Switzerland, the limited liability company (GmbH) is the most popular legal form when it comes to founding a new company. A total of 10,673 (+2.7%) new limited liability companies were registered in the first half of 2024. The increase in newly founded sole proprietorships is surprisingly high, with 9,489 new entries, a growth of 3.2% compared to the first half of 2023. A decrease of -2.5% was recorded for general partnerships.
Comparison of the last 10 half-years
The first half of 2024 shows an increase again and sets a positive trend for the current year. On average, 23,142 new companies were registered per first half of the year in the last 10 years. The 1st half of 2024 records the highest level with 27,109 new start-ups and, at +17.1%, is significantly higher than the average of the last 10 first half-years.
Start-ups by industry
The top growth sectors in the current year include high-tech (+61.1%), architecture & engineering (+33.9%) and marketing & communication (+30.9%). The highest percentage declines were recorded in the Wholesale (-19.4%), Healthcare (-19.5%) and Printing & Publishing (-36.0%) sectors. Most companies were founded in the trades, consulting, real estate and retail sectors.
Switzerland is and remains attractive for start-ups
Despite global challenges and economic uncertainties, Switzerland recorded a positive trend in the number of new start-ups in the first half of 2024. And thus continues to confirm its attractiveness as a business location for founders and start-ups. The international comparison shows that the topic of self-employment has become more important and is now widely recognized. With the upward trend in new start-ups, Switzerland is on the right track.
Simon May, Co-Managing Director of the IFJ, comments: "The first-time comparison with the countries bordering Switzerland shows that there is still potential in terms of the number of company start-ups. Coupled with the positive economic developments, the globally leading innovation location, our open economy, the good infrastructure, a strong education system, attractive taxes and our stable political system, Switzerland is more than ever an attractive location to realize your entrepreneurial ideas and dreams with your own company.
Cooperation between the public sector and economic players is extremely important in order to continue to support entrepreneurship and promote the growth of the start-up scene in the long term. After all, start-ups play an important role in creating new jobs and contribute to economic diversity and resilience. By promoting entrepreneurship, Switzerland will continue to be a driving force for economic growth and technological progress in the future."
Source: www.ifj.ch
