Switzerland has set new records for start-up businesses, with 52,978 companies founded in 2024, reflecting an impressive growth of 2.6% over the previous year. Simon May, Co-Managing Director of the IFJ, notes, "The continuous increase in company start-ups reflects the desire of many people for professional self-realization and independence." The increasing number of self-employed individuals, particularly part-time, suggests a risk-averse approach to entrepreneurship, allowing many to explore self-employment opportunities.
The rise in start-ups not only signifies the country’s entrepreneurial vigor but also produces broader economic benefits. Increased competition and job creation have far-reaching repercussions, marking Switzerland as the leading innovator within Europe according to the European Innovation Scoreboard 2024. May emphasizes, "A strong start-up engine is a key factor for a resilient and innovative economy."
The statistics from 2024 shine light on the growing appeal of various Swiss regions for start-ups. Southwestern Switzerland led the charge with growth of 6.3%, followed by Espace Mittelland at 3.4% and Ticino at 3.0%. Although Central Switzerland grew moderately at 2.0%, notable regional disparities emerged, with Northwestern Switzerland seeing a decrease of 1.0%.
Among the individual cantons, Appenzell Innerrhoden topped the growth chart at 25.0%, with Uri and Appenzell Ausserrhoden also showing notable increases of 13.1% and 12.8%, respectively. Conversely, some cantons, including Thurgau and Basel-Landschaft, reported declines of up to 7.6%. This paints a varied picture of entrepreneurship across the nation.
On the legal front, sole proprietorships have become the fastest-growing business structure, increasing by 3.4%, following public limited companies (AG) at 2.4% and limited liability companies (GmbH) at 1.5%. Despite general partnerships seeing a slight decline of 1.2%, the overall trends demonstrate the diverse legal preferences of Swiss start-ups.
The strength of the Swiss economy is underscored by its impressive 10-year high of 52,978 new start-ups, which is 13.8% above the average annual figures. The most prevalent sectors registering start-ups this year include crafts, consulting, and real estate, indicating diverse entrepreneurial interests.
Moving to the political and economic environment, trade unions have expressed dissatisfaction with the newly proposed framework agreement between Switzerland and the European Union. Concerns raised by unions such as the Swiss Federation of Trade Unions and Travail Suisse highlight issues of transparency and insufficient detail surrounding the new agreements. According to the NZZ am Sonntag, trade unions are set to convene separate summits on January 31 to strategize on protecting wages from labor influx.
Labour market dynamics are at heart of union concerns, with Travail Suisse president Adrian Wüthrich demanding clarity from the Federal Council. "If it is not clear what is in the agreement, there can be no sensible talks about domestic policy measures," he commented. This sentiment was echoed by Daniel Lampart, chief economist of the Swiss Federation of Trade Unions.
The Swiss Trades Association has also called for more transparency, asserting, "We have too little information to be able to make a decision," highlighting the unions' need for more clarity. Director Urs Furrer pointed out, though, they are against compromising Switzerland's liberal labor market.
The new framework agreement, announced after protracted negotiations, intends to fortify future relations between Switzerland and the EU. Given recent instability, questions surrounding its stipulations and impacts on domestic labor may incite debates within Swiss trade circles.
Despite the challenges posed by the new EU agreement, the evident entrepreneurial spirit and start-up culture thriving within Switzerland affirm its economic resilience. With record levels of new company formations amid global uncertainties, the importance of start-ups as catalysts for innovation and job creation continues to assert itself.