SME landscape in Switzerland: uncertainty on the rise
Uncertainty in markets and industries has increased sharply in recent years. Swiss SMEs still feel stable and well to very well positioned. However, increasing uncertainty is having a negative impact on business success, as a recent survey by the Swiss Institute for Small and Medium-sized Enterprises at the University of St.Gallen (KMU-HSG) shows.
Although the Swiss SME Day 2020 was moved, but the annual KMU-Tag study by the Swiss Institute for Small and Medium-sized Enterprises (KMU-HSG) was nevertheless conducted and has now been published. Over 200 managers took part in the survey.
Need for action in the Swiss SME landscape
According to the survey, 52% of the respondents see a high need for action to align their company in an agile(er) way. The number of reports of economic instability has increased in recent years. Political surprises have occurred at ever shorter intervals, causing uncertainty. The most recent three major events alone pose existential challenges for many SMEs: The lifting of the exchange rate floor by the Swiss National Bank, the Brexit decision in the UK and, above all, the Corona pandemic. Thus, 54% of the respondents state that uncertainty is higher or significantly higher today than it was five years ago. SMEs were also naturally surprised by the impact of the Corona pandemic. Over 60% of respondents rate the impact of Covid-19 as negative or even very negative for their business. In addition, just under 10% of respondents consider the likelihood that they will experience financial difficulties in the next twelve months to be great or very great.
High resilience and confidence
However, the results also show that SMEs have a high level of resilience and also prove themselves in times of crisis. Compared with large companies in Switzerland, SMEs have significantly higher scores for flexibility, agility and willingness to adapt and change. Despite all the uncertainty and surprises, 87% of SMEs rate their competitive position as good to very good. 44% of the companies continue to focus on growth and want to further expand their market shares. 30% of the respondents even want to penetrate new markets and business areas.
Pandemic drives digitization
Even the current pandemic is not leaving only negative traces in the Swiss SME landscape. Many SME managers praise the motivation and solidarity of their employees. For many SMEs, the pandemic seems to have triggered a new sense of unity. In addition, many respondents see a positive influence on digitization in their company. It is also frequently mentioned that the crisis has helped to question processes and structures and to align them consistently (more) with the needs of customers.
Source: SME-HSG
