In which cantons the spirit of entrepreneurship is particularly strong

A total of 33,617 new companies were founded in the first three quarters of 2020, an increase of +2.5% compared to the record previous year 2019. The national analysis of the IFJ shows in which cantons most startups were created. Zug is by far the leader with 13.7 startups per 1,000 inhabitants, followed by the cantons of Schwyz, Appenzell Innerrhoden, Geneva and Basel-Stadt.

In which canton is there the greatest entrepreneurial spirit?

On average, 4.28 startups per 1,000 inhabitants took place in Switzerland in the current year. A total of 9 cantons are above the national average. The canton of Zug (13.73) is at the top by a remarkable margin, ahead of Schwyz (6.07), Appenzell Innerrhoden (5.95), Geneva (5.51) and Basel-Stadt (4.79). The Swiss cantons with the lowest start-up rates are Uri (2.11), Bern (2.74) and Schaffhausen (2.85), which found the fewest new companies per 1,000 inhabitants.

Development of the individual months in the first three quarters

The analysis of the IFJ Institut für Jungunternehmen shows that due to the imposed Corona measures in March (-5.4%), April (-25.1%) and May (-13.4%) significantly fewer companies were founded than in the previous year. During these three months of the shutdown, on average -14.6% fewer firms were founded than in the same period last year. However, this decline was with the subsequent months, which were strong in terms of founding made up for or overcompensated for the decline. In June, there was an increase of +24.8%, in July +11.1%, in August +17.9% and in September an increase of +18.3%. The confidence among founders in Switzerland continues and an ongoing increase can be expected in 2020.

Five industries account for 50% of all startups

About 50% of all startups occur in the five industries of skilled trades (17.4%), consulting (10%), retail trade (8.5%), real estate (7.7%), and food services and accommodation (6.5%). The least number of startups is in the activity sector of printing and publishing (0.4%), high-tech (0.6%), agriculture and forestry (1%) and education (1.9%).

In terms of the development of the sectors compared to the previous year, it can be seen that Hairdressing and Cosmetics increased by +23.6%, Marketing and Communication +17.6%, Education +16.7%, Consulting +13.1% and Architecture and Engineering +10% in the double-digit range. The largest percentage declines were in Other Services (travel agencies, professional services, etc.) -24.5%, Culture and Nonprofit -7.1%, and Finance and Insurance -6.7%.

Northwestern Switzerland on a high, Schaffhausen and Ticino still strongly in the red

The major regions of Northwestern Switzerland +9.3%, Central Switzerland +5.7%, Eastern Switzerland +5.0%, Escape Mittelland +3.8% and Zurich +3.6% enjoyed a recovery in company founders in the first three quarters of 2020 and even set positive accents compared to the record year of 2019.

Just as Ticino was hit hardest by the Corona pandemic, the decline in the number of startups in Ticino compared with the previous year is also relevant in a comparison of the major regions, at -12.6%. The spirit of entrepreneurship also declined in southwestern Switzerland, with the region recording a drop of -2.2% in new startups.

Despite the currently still adverse economic circumstances, 22 of the 26 Swiss cantons can look back on more startups in the first nine months compared to the previous year. The cantons with the strongest percentage growth are Obwalden +45.5%, Appenzell Innerrhoden +20%, Thurgau +15.1%, Appenzell Ausserrhoden +11.3%, Glarus +10.6%, Basel-Stadt and Basel-Landschaft +9.4%, Aargau +9.1%, Valais +8.2%, Lucerne +7.1%, Solothurn +6.7%, Jura +6.6%, Schwyz +5.9%, Fribourg +4.7%, Uri +4.1%, Zurich +3.6%, Graubünden +3.0%, Bern +2.6%, Neuchâtel +2.3%, Zug +2.2%, St. Gallen +1.2% and Nidwalden with +1.1%. The cantons with percentage losses are Geneva -2.2%, Vaud -6.3%, Schaffhausen -11.4% and Ticino with -12.6%.

Source: www.ifj.ch