Entrepreneurship in Switzerland: Not a Nation of Founders
Despite favorable framework conditions and a lower fear of failure, Swiss young people are still reluctant to embark on the entrepreneurial path. In addition, fewer women are willing to choose this career path.
The latest Switzerland country report of the Global Entrepreneurship Monitor (GEM), the largest international study on entrepreneurship, shows a great reluctance among young people to want to start their own company one day. The 2016/2017 edition of the study, authored by the Fribourg School of Economics (HSW-FR), in collaboration with the State Secretariat for Economic Affairs (SECO), examines for the first time regional differences according to the seven major regions (from the Federal Statistical Office) and the spatial types of Switzerland's new regional policy NRP. Within the framework of the study, 3500 interviews were conducted.
8.2% of Swiss people started their own business between 2013 and 2016
The framework conditions in Switzerland are generally viewed positively, and the conditions for starting a business are better in Switzerland than in comparable countries. Nevertheless, only 8.2% of the Swiss have embarked on an entrepreneurial adventure in recent years. This is a slight increase (+ 0.9%) compared with 2015, but Switzerland still ranks below the average of comparable innovation-based economies (9.1%), such as the United States, Canada or Australia.
Entrepreneurship is not a real career choice
In 2016, 43.3% of the Swiss believed they had enough experience and skills to start their own business. But starting a business is only an option for a minority: 38.9% of the population considers it a good career choice, compared to 77.9% in the Netherlands, 68.8% in Portugal, 65.5% of Canadians, or 64.2% of Israelis. And only 7.9% of the Swiss are willing to become entrepreneurs and start a new business in the next three years. Entrepreneurial careers still do not seem to have the necessary positive appeal among the Swiss population.
Switzerland in the back ranks
Among young people aged 18-24, the transition to entrepreneurship is indeed problematic. Although many of the young respondents consider an entrepreneurial career a good career choice (44.2% of them), only a small minority (13.6%) consider that they have the necessary foundations to start their own business. And only a quarter (25.5%) recognize interesting business opportunities in the place where they live. In an international comparison, Switzerland clearly lags behind here: only one young person in their thirties is currently starting a business or is at the helm of a startup. A figure that puts Switzerland in the back ranks of comparable innovation-strong economies (23rd place in a comparison of 27 countries). In the Netherlands, nearly one in five already knows the joys and challenges of entrepreneurship....
How can you get young people excited about entrepreneurship?
Are these signs of a lack of self-confidence? Or does the young Swiss generation not want to leave its own comfort zone and employee status? The results suggest that the course toward entrepreneurial incentives and education is being set too late. How, therefore, can entrepreneurial spirit and innovative behavior be taught during compulsory schooling? According to Rico Baldegger, Director of HSW-FR, "the success of our first edition of the ADOPRENEURS summer camp, which we organized in the summer of 2016 for young people aged 13 to 16, clearly shows that young people are waiting for such initiatives. Even more, the way of entrepreneurial education, including the post-compulsory level, needs to be fundamentally rethought. We need to get students out of the classroom and into the practice of the real business world, especially that of startups. The Swiss education system needs to do a better job of fostering creativity in young people and encouraging them to think outside the box and away from traditional careers."
Women less involved in entrepreneurial activities
The situation analysis from a gender perspective shows that women are less likely to engage in entrepreneurship today than they were about a decade ago. From 22.9% in 2003, the rate increased to almost 50% between 2011 and 2014 - a figure close to parity with men - but drops again to 32.2% in 2016. This could be interpreted as the 2008 financial crisis pushing women to start new businesses "out of necessity". Furthermore, the overall situation of the labor market has improved in recent years, and may therefore have diminished their entrepreneurial ambitions. The balance between work and family life also seems likely to be a factor in this significant decline.
