Switzerland’s start-up scene is thriving in Q1 of 2023, with a potential to break records. As per the IFJ’s ”National Analysis of Swiss Start-ups 2023”, 13,599 new start-ups have already been registered, which is a growth of 3.3% compared to the record year 2021 and a 7.1% increase from the same period in 2022. It remains to be seen whether this trend will continue throughout the year.
Simon May, co-CEO of the IFJ, attributes this increase in start-ups to a growing desire for career freedom and owning a business. In particular, partnerships are becoming more popular, with a 16.1% rise in sole proprietorships and a 22.2% increase in general partnerships compared to the same period last year. The IFJ’s national analysis provides a detailed overview of the changes in company formations.
Let us have a look at some figures
The IFJ’s national analysis shows how company formations have changed in detail:
16.1% increase in sole proprietorships
22.2% increase in general partnerships
4.8% increase in limited liability companies (LLCs)
3.5% increase in joint-stock companies (JSCs)
The majority of new start-ups were founded in the service sector, followed by the trade and construction sectors. The Canton of Zurich remains the most popular location for start-ups, with over 3,500 new companies registered in the first quarter. Other cantons with a high number of new start-ups include Vaud, Geneva, and Aargau.
The Swiss start-up ecosystem has been growing steadily in recent years, with the government and private investors providing support for entrepreneurs. Switzerland offers a favorable environment for start-ups, with its stable economy, highly skilled workforce, and access to international markets.
However, the start-up scene in Switzerland is not without challenges. The high cost of living and the difficulty in finding affordable office space can be obstacles for young companies. The IFJ is working to address these challenges and support the growth of the Swiss start-up ecosystem.
Overall, the first quarter of 2023 has been a promising start for the Swiss start-up scene, with a record number of new companies being founded. Whether this trend will continue throughout the year remains to be seen, but the signs are positive for a strong and growing start-up ecosystem in Switzerland.