Record figures for Swiss company start-ups
The company foundation figures from the first to third quarter show that More and more people in Switzerland are taking the plunge into entrepreneurship. A total of 39,166 new registrations were recorded in the Swiss commercial register. According to the current study "National Analysis of Swiss Company Formations Q1 to Q3 2024" by the IFJ Institute for Young Entrepreneurs (IFJ), this is +2.2 % more than in the same period of the record year 2023. The Swiss Labor Force Survey (SLFS) of the Federal Statistical Office (FSO) illustrates the relevance of this development for Switzerland. It shows that 14 % of all employed persons in Switzerland are self-employed.
The start-up data from 01.01.2024 to 30.09.2024 is positive. The number of companies founded this year is at a record high level and, if the frequency of start-ups continues, will exceed the start-up record set in 2023. By the end of the third quarter of the current year, an average of 143 companies were founded every day across Switzerland. This represents growth of +2.2 % compared to the same period last year.
One trend that continues to be noticeable in start-up behavior is part-time self-employment. "Many of our founders want to play it safe and start their own business alongside a job," says Simon May, Co-Managing Director of the IFJ.
Around one-seventh of the workforce is self-employed
The relevance of start-ups in Switzerland is not only evident in the area of innovation and international competitiveness, but also in terms of employment. According to the latest SAKE, 14% of all employed persons are self-employed. That is 679 thousand people. The trend towards part-time self-employment can also be substantiated with figures from the SLFS. This is because 8.2% of all gainfully employed people in Switzerland have more than one job. Self-employment, and thus also start-ups, play an important role in Switzerland, as they not only offer an employment opportunity for the self-employed, but also create additional jobs for employees.
The IFJ's national analysis shows how company formations have changed in detail from Q1 to Q3:
Start-up growth in all regions
In the period from January 1 to September 30, Southwestern Switzerland (+5.6%) and the Zurich region (+2.0%) are the major regions with the most significant growth. The Espace Mittelland region (+1.5%), Central Switzerland (+1.4%), Eastern Switzerland (+1.1%) and Ticino (+0.8%) also recorded very positive figures, while Northwestern Switzerland (-0.5%) recorded a slight decline.
Cantons at start-up peak
In 18 cantons, the number of new start-ups increased from the first to the third quarter compared to the same period last year. These are currently the cantons with the highest growth in Swiss company start-ups: Appenzell Ausserrhoden (+15.3%), Uri (+12.6%), Appenzell Innerrhoden (+11.2%), Vaud (+7.9%), Valais (+7.0%), Fribourg (+6.5%), Glarus (+6.6%), St. Gallen (+5.6%), Zug (+3.8%), Obwalden (+3.5%), Schwyz (+2.3%), Zurich (+2.0%), Geneva (+1.9%), Bern (+1.2%), Neuchâtel (+1.1%), Aargau (+0.8%), Ticino (+0.8%) and Basel-Stadt (+0.6%).
Fewer start-ups are currently being founded in these cantons
The cantons with only slight percentage losses are Graubünden (-0.9%), Jura (-3.0%), Nidwalden (-3.1%), Solothurn (-2.5%) and Lucerne (-2.3%). A clear decline can be seen in the cantons of Basel-Landschaft (-4.7%) and Thurgau (-5.1%). The sharpest percentage decline in company formations was recorded in the Commercial Register Office of the Canton of Schaffhausen (-15.9%).
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 15,324 (+1.6%) new limited liability companies were registered in the period Q1 to Q3 2024. The increase in newly founded sole proprietorships is surprisingly high, with 13,674 new registrations, a growth of 4.2% compared to the same period of the previous year. A decline of -4.4% was recorded for general partnerships and -1.2% for public limited companies.
5-year comparison
On average, 37,183 new companies were registered in the period from January 1 to September 30 in the years 2020 to 2024. With growth of +5.3% compared to the 5-year average and +2.2% compared to the same period of the previous year, the first three quarters of 2024 are at a record level and well above average with 39,166 new start-ups.
More new companies. More self-employed. More part-time employees
Simon May, Co-Managing Director of the IFJ, says: "The current year once again impressively demonstrates that Switzerland is a sustainably good place to set up your own company. The positive trend in the number of new company start-ups in the first nine months is very pleasing for Switzerland as a business location."
Currently, an increase in the number of sole proprietorships can be observed, which goes hand in hand with the latest figures from the labor force survey (LFS). Today, 14% of all employees are self-employed.
The commitment of the public sector in the area of location promotion has a positive effect on the development of company start-ups. "Numerous cantons, economic regions, cities and municipalities support start-ups. This also motivates people to take the step to start their own company and brings long-term growth at all levels," says May.
The current company foundation figures are very positive and all signs indicate that the company foundation record will be broken this year.
Source: www.ifj.ch
