Incorporations Switzerland 1. half year 2024

Fri, 28.06.2024, 10:00

In the first half of 2024, Switzerland recorded 27,109 new startups, marking a growth of +2.1% compared to the previous year, as shown in the IFJ study "National Analysis of Swiss Business Startups 1st Half of 2024". The study also analyzed Switzerland's startup activity compared to neighboring countries based on 2023 data. The result: With 5.8 startups per 1,000 inhabitants, Switzerland is below the average of the six countries studied.

The number of incorporations in the first half of 2024 is encouraging. With 27,109 new business establishments, there was a growth of +2.1% compared to the previous year, averaging approximately 149 companies per day. The trend towards entrepreneurship remains strong for good reasons: Switzerland's business-friendly environment includes robust infrastructure, government support programs and low corporate taxes. Innovation is actively promoted, as confirmed by the Global Innovation Index where Switzerland has held the top spot 13 times by 2023. The country boasts a high-quality technology startup scene and positive national development trends. "Another Swiss incorporation record in 2024 is very likely," confirms IFJ Co-Director Simon May.

Switzerland in international comparison with its neighbors reveals surprising insights

The country lags behind in new companies per 1,000 inhabitants, ranking third from last among the countries studied, ahead of Austria and Italy with 5.8 incorporations. Liechtenstein emerges as the leader with 28.73 companies per 1,000 inhabitants. Various factors contribute to this ranking, including structural differences, financial incentives, registration requirements, bureaucracy and support programs. Another challenge for the number of companies founded in Switzerland is the domestic and international competitive pressures. The Swiss market is small, multilingual and fiercely competitive due to established companies with strong market positions. Additionally, it's important to note that the statistics focus on new registrations and do not assess the sustainability of these businesses; Switzerland actually boasts a relatively high business survival rate, which is often overlooked (see article).

International comparison in detail

The following overview provides the exact numbers of the calculation basis. The research refers to national institutions, media, and statistical offices of the respective countries.

(Sources: Swiss Official Gazette SHAB, Swiss Federal Statistical Office | Report of the Parliament 2023, Office of Statistics Liechtenstein | WKO Austrian Chamber of Commerce, Statistics Austria | Insee National Institute of Statistics and Economic Studies | Il Sole 24 Ore, Istat National Institute of Statistics | Federal Statistical Office (Destatis), Federal Statistical Office (GENESIS Destatis); Analysis and graphics: IFJ Institute for Young Enterprises AG; Period: 01.01.2023 - 31.12.2023)

New business startups in Switzerland at record high

In international comparison, the current number of new business startups in Switzerland reflects positively and mirrors the current strong economic developments (including low inflation, low unemployment rates, positive economic conditions). The 10-year trend of Swiss business startups is clearly upward.

The national analysis by IFJ illustrates how business startups have evolved across Swiss cantons and industries in the first half of 2024:

Most of the cantons show positiv results

In the first half of 2024, the regions of Southwest Switzerland (+5.4%), Eastern Switzerland (+2.8%), Central Switzerland (+2.7%), and Northwestern Switzerland (+1.4%) experienced the strongest growth. Only modest growth was observed in the Zurich region (+1.1%). A slight decline was noted in the Espace Mittelland region (-0.4%) and in Ticino (-1.6%).

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG ) ; 01.01.2024 - 30.06.2024 in comparison to the same period the previous year)

Cantons with a high incorporation rate

In 16 cantons, the number of incorporated companies in the first six months of 2024 increased compared to the same period last year. Currently, these are the cantons showing growth in Swiss company formations: Appenzell Ausserrhoden (+17.4%), Appenzell Innerrhoden (+14.8%), Vaud (+12.8%), Uri (+10.4%), Valais (+8.6%), Glarus (+6.4%), Zug (+6.2%), Thurgau (+4.8%), St. Gallen (+4.1%), Aargau (+2.9%), Schwyz (+1.1%), Zurich (+1.1%), Obwalden (+1.0%), Neuchâtel (+0.9%), Fribourg (+0.7%) and Basel-Stadt (+0.3%).

Cantons with a decrease of incorporations

The cantons experiencing only slight percentage decreases in new business formations are Lucerne (-0.5%), Jura (-0.5%), Berne (-0.6%), Nidwalden (-1.2%), Graubünden (-1.3%), Basel-Landschaft (-1.3%), Ticino (-1.6%), Solothurn (-2.1%) and Geneva (-5.1%). The most significant percentage decline in new company registrations was recorded at the commercial registry office of the canton of Schaffhausen (-15.1%).

Legal Forms in Comparison

In Switzerland, the limited liability company (LCC) is by far the most popular legal form chosen for establishing a new company. A total of 10,673 (+2.7%) new LLCs were registered in the first half of 2024. Surprisingly high is the increase in newly founded sole proprietorships, which recorded 9,489 new registrations, marking a growth of +3.2% compared to the first half of 2023. A decline of -2.5% is observed in the General partnerships.

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG Period: 01/01/2024 to 06/30/2024 compared to the same period of the previous year)

Comparison of the last 10 Half-Years

The first half of 2024 shows an increase again and sets a positive trend for the current year. On average, over the past 10 years, 23,142 new companies were registered per first half-year. The first half of 2024 records the highest level with 27,109 new establishments, which is +17.1% significantly higher than the average of the last 10 first half-years.

(Source: Schweizerisches Handelsamtsblatt SHAB; Analysis and Graphics: IFJ Institut für Jungunternehmen AG Period: 01.01.2024 bis 30.06.2024 compared to the previous periods 2015-2023)

New Establishments by Sectors

The top growth industries this year include High Tech (+61.1%), Architecture & Engineering (+33.9%), and Marketing & Communication (+30.9%). The sectors experiencing the highest percentage declines are Wholesale Trade (-19.4%), Healthcare (-19.5%), and Printing & Publishing (-36.0%).

The most companies are founded in the sectors of Crafts, Consulting, Real Estate and Retail.

(Source: Swiss Official Gazette of Commerce SOGC, Dun & Bradstreet Schweiz AG; Analyse: IFJ Institut für Jungunternehmen AG) ; 01.01.2024-30.06.2024 in comparison to Q2 2024)

Switzerland remains attractive for entrepreneurs

Despite global challenges and economic uncertainties, Switzerland has shown a positive development in the number of new business startups in the first half of 2024, reaffirming its attractiveness as a business location for entrepreneurs and startups. The international comparison indicates that self-employment has become increasingly significant and is now widely recognized. With an upward trend, Switzerland is on the right track.

Simon May, Co-Managing Director of IFJ, remarks: "The initial comparison with neighboring countries highlights that there is still potential in terms of the number of business startups. Combined with positive economic developments, our global leadership in innovation, an open economy, strong infrastructure, a robust education system, attractive tax policies, and a stable political system, Switzerland is more than ever an appealing destination to realize entrepreneurial ideas and dreams with one's own business. Collaboration between public authorities and economic stakeholders is crucial to support entrepreneurship and promote long-term growth in the startup scene. Entrepreneurial ventures play a crucial role in creating new jobs and contribute to economic diversity and resilience. By fostering entrepreneurship, Switzerland will continue to be a driving force for economic growth and technological advancement in the future."

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