2016 Start-up Report: More start-ups than last year
Last year, more companies were registered in the commercial register than last year, as evidenced by the 2016 Start-up Report. Compared to 2015, the start-up rate achieved a stable growth of 0.7%. The entrepreneurial climate in Romandy was particularly strong, as this region showed the strongest relative growth.
Great number of new registrations in 2016
A total of 41,329 new companies were registered in the commercial register in 2016. The 41,000 limit was exceeded for the third consecutive year as a result, however this did not lead to a new start-up record. 2014 still remains the record year with 41,588 new entries.
Nevertheless, 2016 was still a good year for entrepreneurs, with 0.7% more companies being established than the previous year. This growth suggests that the Swiss economy has stabilised and space has opened up again for innovation. The numerous start-up support programs are also starting to take effect.
Romandy shows strong growth
Considerable economic upswing has been observed in recent years in the west of Switzerland. The region of “Arc Lémanique” between Lausanne and Geneva seems to be especially booming. Romandy recorded a very strong growth of 4.8% compared to the previous year. This gives Romandy a relative share of 28.52%, which corresponds exactly to the proportion of the resident population. Particularly strong were the cantons of Vaud and Geneva, with growth rates of 11.55% and 5.31% respectively. Geneva forced the canton of Bern off the podium in 2015 and has managed to successfully maintain its position.
German-speaking Switzerland achieved a good growth rate of 0.24% compared to 2015. This result already points to an economic recovery in German-speaking Switzerland, as last year resulted in negative growth of -0.58%. German-speaking Switzerland, with 65.29%, does of course have the largest relative share of start-ups.
Most founders are male
A clear picture emerges in the 2016 Start-up Report on founders from STARTUPS.CH: 25% of founders are female and 75% male. This ratio remained constant compared to the previous year. Around two thirds of all start-ups at STARTUPS.CH were established by Swiss nationals. Other founders mainly originate from our neighbouring countries, with Germans accounting for an 8.6% share. This was followed by the French and Italians, with a relative share of 4.5% and 4.4% respectively.
The Ltd. form continues to develop its supremacy
The Ltd. form was able to expand its popularity amongst young entrepreneurs and achieved a share of 37.97% in the 2016 Start-up Report. Sole proprietorships, with a share of 32.91%, and public limited companies, with a share of 20.16% followed suit.
The Ltd. form has blossomed into a favourite for young entrepreneurs since the revision to legislation in 2008. The share of Ltd. start-ups has steadily increased since then. Besides offering an attractive liability regime (only business assets are liable), the Ltd. form offers other advantages such as a low minimum starting capital of CHF 20,000, increased fiduciary duties and a competition ban for shareholders (cf. blog post).
Cantonal differences
The strongest canton continues to be Zurich with a growth of 1.01% and a share of 17.93% of all new registrations in Switzerland. Further details on the absolute numbers of new registrations and the relative growth rates of individual cantons can be found in the table below.
