The record wave of start-ups is flattening out

In the first three months of 2022, a total of 12,695 new companies were founded in Switzerland. This corresponds to a slight decline of -3.6% compared with the same quarter of the previous year, meaning that the record wave of new startups is leveling off.

The number of new companies is only increasing in individual regions of Switzerland. Overall, however, the record wave of new startups seems to be over. (Graphic: Swiss Official Gazette of Commerce SHAB; analysis and graphic: IFJ Institut für Jungunternehmen AG)

The record wave of new startups seems to be leveling off somewhat: After the last two pandemic years were characterized by a veritable start-up boom, the current start-up figures are settling back into a stable and positive trend, as in the period before COVID-19. Only the major regions of southwestern Switzerland +1.2% and eastern Switzerland +0.2% are enjoying an increase in the number of company founders in the first quarter of 2022. The regions of Central Switzerland -0.5%, Zurich -2.4%, Northwestern Switzerland -7.0%, Ticino -7.8% and Espace Mittelland -12.2% show a slight to medium decline in the number of company startups in a quarterly comparison with the previous year.

5-year comparison and start-ups by sector

On average, 11,984 new firms were registered per first quarter over the past 5 years. Despite a decrease of -3.6% compared to the same period last year, the first quarter of 2022 with 12'695 new firms is well above the 5-year average and continues the stable and positive trend of the pre-pandemic period. Over the past 5 years, an average of 131 new firms were created per day in the first three months.

Company start-ups in quarterly/yearly comparison. (Chart: Institute for Young Enterprises)

On the part of company formations by industry, it can be seen that the high-tech industry recorded enormous growth with +54.4%. Other top growth industries include printing & publishing with +13.2%, education with +11.8%, and transportation & logistics with +11.5%. The highest percentage declines were recorded by Agriculture & Forestry (-23.1%), Retail Trade (-11.6%), and Culture & Nonprofit (-11.5%).

Outlook and estimates

In the last decade, the number of company startups in Switzerland has risen from under 40,000 to over 50,000. While the number of startups in 2021 developed positively across almost all cantons, the first quarter of 2022 shows a slight decline compared to the previous year. However, the development of the last 5 years shows that the number of new start-ups has stabilized again in the new year and that the positive trend, as before the pandemic period, is continuing. The economic relevance of newly founded companies becomes impressively apparent when one considers the sustainable number of jobs created in Switzerland. Around 400,000 people are employed in companies that are less than 10 years old. For a well-functioning economy like Switzerland, it is essential that new companies are founded every day. It is not for nothing that Switzerland has for years been a global leader in the areas of innovation, efficiency, number of patent applications and is considered the most competitive business location.

Source: IFJ Institute for Young Enterprises AG

(Visited 66 times, 1 visits today)

More articles on the topic