Compared to top countries starting a business is still not popular in Switzerland

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12.08.2019
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The high-tech start-up scene in Switzerland might be blooming but this change has not appeared in the general population. The share of people who intend to start a business or have started entrepreneurial activities is clearly below the average of comparable countries. These are the findings of the latest Swiss-related results in the latest Global Entrepreneurship Monitor (GEM), the largest international study on entrepreneurship.

Fostering entrepreneurial awareness and positive attitudes toward entrepreneurship is high on Switzerland’s policy agenda. Nevertheless, the intentions of Swiss inhabitants to start a business are lower (6.9%) than in 2017 (10.5%) and under the average for other high-income economies (17.1%). Moreover, only 7.4% of Swiss business people have plunged into entrepreneurial activities (total entrepreneurial activity TEA-rate), a founding rate that is below the average of compared countries (10.4 %).

The Swiss-related results of the 2018/2019 edition also show that the Swiss are less confident about their entrepreneurial abilities to start a new business (perception of capabilities rate at 36.5%), paired with a higher fear of failure, compared to 2017 (39.9%, 2017: 29.5%). This percentage of Swiss who believe they have the required skills and knowledge to start a business is below the European benchmark and clearly behind the very strong confidence of Americans in their own capacity to start a business. Since 2013 the perception of capabilities has been decreasing and we are at the same low level as in 2012.

Switzerland far from being a start-up nation

The Swiss country report of the latest Global Entrepreneurship Monitor (GEM) was written by the School of Management Fribourg (HEG-FR) with its partner SUPSI. For the report, more than 2,400 people were surveyed across Switzerland. The overall conclusion is that Switzerland is far from being a start-up nation. Rico Baldegger, author of the study comments: “the difference to the top countries regarding entrepreneurial activity grew bigger in 2018 and the positive results in 2017 regarding entrepreneurial perceptions, or higher entrepreneurial intentions, social status or media attention were not translated into more engagement in entrepreneurial activities today. These findings are critical and must be closely watched in the next few years.” More background information from Rico Baldegger in our interview. 

Myth: most founders are young

Entrepreneurial activity among the young population has decreased in the last few years and is lagging behind considerably. The differences have increased: compared to other high-income economies, only 2.2% of young Swiss people between the ages of 18 and 24 are currently involved in founding a company or leading a startup, clearly below average (9.5%). This puts Switzerland 30th of 32 high-income countries: the difference to Canada (27.3%), the Netherlands (15.9%), the USA (14.7%) or Austria (14.0%) is impressive. Among the 18 to 24-year-olds, only 15.4 % of respondents recognize entrepreneurial opportunities in their environment. For the 35 to 54-year-olds, it is 48.9 %.

Significant differences between men and women

In Switzerland, only 4.72% of women today are willing to engage in entrepreneurial activities, compared to 9.98% for men in 2018. In Switzerland, there were exactly two male founders per female founder in 2018. This figure is well above the average for all high-income countries (1.61%). Thus, 25 of the 30 reference countries have a more favorable ratio of women to men founders.

The GEM Report Switzerland 2018 / 2019 can be downloaded from the website of the School of management Fribourg.

(Press release - SK)

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