Incorporations in Switzerland Q1 2023

Fri, 31.03.2023, 12:30

The year 2023 has the potential to break the Swiss startup record. According to the IFJ study “National Analysis of Swiss Company Incorporations 2023”, 13'599 new foundations were already recorded in the first quarter of the current year. This is a growth of 3.3% compared to the existing record year 2021 and an increase of 7.1% compared to 2022. However, it is unclear whether this startup high can be maintained until the end of the year.

More people in Switzerland are taking the plunge into self-employment. According to the IFJ Institutfür Jungunternehmen 13'599 new companies were founded in the first quarter of the year. That isaround 151 company incorporations every day and a growth of 7.1% compared to the same periodof the previous year. This increase does not surprise Simon May, the Co-CEO of the IFJ: "Today, manypeople have the need for more freedom in their job and make the dream of their own companypossible."

Partnerships are also becoming more popular. In this quarter, there was an increase of16.1% for sole proprietorships and an increase of 22.2% for general partnerships.The national analysis by the IFJ shows how company foundations have changed in detail:


(Graph: IFJ Institut für Jungunternehmen AG)

Inspired by the south: Startups in Ticino increased by nearly 26.5%

In a comparison of the major regions, Ticino impresses with a growth of +26.5% compared to the same quarter of the previous year. The major regions of Espace Midlands (+12.6%), Northwestern Switzerland (+11.9%) and Eastern Switzerland (+8.3%) also recorded significant growth in the first quarter of 2023 compared to the first quarter of 2022. The major regions of Zurich (+3.8%), Southwestern Switzerland (+2.5%) and Central Switzerland (+1.9%) recorded lower growth.

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG Period: 01/01/2023 to 03/31/2023 compared to the same period of the previous year)

Comparison of legal forms

In the first quarter of the current year, the general partnership and sole proprietorship were more popular when choosing a legal form than in the same quarter of the previous year. The general partnership (+22.2%) and the sole proprietorship (+16.1%) recorded a significant increase compared to the first quarter of 2022. In contrast, the limited company (AG) recorded a sharp decline in startups at -3.2%.

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG Period: 01/01/2023 to 03/31/2023 compared to the same period of the previous year)

 

5 year comparison

With a growth of +7.1% compared to the same period of the previous year, the first quarter of 2023 is at a record level with 13'599 new companies. The first quarter of the current year is thus well above the average of the last 5 years. On average, 12'494 new companies were registered every first quarter from 2019 to 2023.

(Source: Swiss Official Gazette of Commerce SOGC; analysis and graph: IFJ Institut für Jungunternehmen AG Period: 01/01/2023 to 03/31/2023 compared to the previous year's periods 2019 to 2022)

Startups by industry

The top growth sectors in the current year 2023 include B2B & B2C Services (including video production, photography, facility management, horticulture) with +35.2%, Hairdressing & Cosmetics with +24.4% and Transport & Logistics with +19.0%. The sectors Hightech (-44.8%), Agriculture & Forestry (-16.9%) and Education (-12.1%) recorded the highest percentage declines. Numerically, these three sectors are among the smallest, which is why percentage fluctuations can be very dynamic here. Numerically, the most companies are founded in the skilled trades, consulting and retail sectors.

(Source: Swiss Official Gazette of Commerce SOGC, Dun & Bradstreet Schweiz AG; analysis and graph: IFJ Institut für Jungunternehmen AG Period: 01/01/2023 to 03/31/2023 compared to the same period of the previous year)

Swiss founders show their potential and are optimistic

The current development of the number of startups shows that the Swiss economy continues to develop positively despite the current economic uncertainties and challenges and offers a functioning ecosystem for startups and young companies. The increasing number of startups is also an indicator of trust and confidence in the Swiss economy and its future potential. However, against the background of current economic events and geopolitical challenges, it is important that the Swiss government and economic actors continue to be proactive and take targeted measures to support entrepreneurship in Switzerland. Despite the below-average economic growth forecast, the prospects for startups are positive. Because Switzerland is still considered the most innovative country in the world (cf. Global Innovation Index) and new companies make an important contribution to the creation of new jobs. Overall, we assume that the number of new foundations in Switzerland will remain at a high level this year.
 

Additional Links