Report on Company Foundations April 2020: Total crash of the foundation numbers – about 1000 company foundations less due to the coronavirus
In April 2020, the number of start-ups reached an absolute record low due to the corona crisis. With only 2732 company foundations, the past month is by far the worst April since the beginning of the records. Compared with April 2019, there was a reduction of 920 company foundations (- 25.19%). The decline is even more noticable in comparison with the previous month, as 1008 fewer companies were founded in April 2020 than in March 2020 (- 26.95%).
Total crash of the foundation numbers
In April 2020, only 2732 new companies were founded in Switzerland. An absolute record low! April 2020 is therefore the weakest April since STARTUPS.CH started recording in 2013. April 2020 is actually the fourth worst month ever. Only in August of the years 2013, 2014 and 2015 were even lower foundation figures recorded. This is despite the fact that April is actually one of the strongest months for start-ups and does not suffer from the summer slump. Rather, the current collapse of the foundation numbers is undoubtedly caused by the ongoing corona crisis. Compared to April 2019, 920 fewer companies were newly registered in the commercial register (- 25.19%). The decline is even more significant compared to March 2020 (- 1008 start-ups or – 26.95%).
French-speaking part of Switzerland most affected
The standstill in public life clearly noticeable in the different language regions of Switzerland as well. The French-speaking part of Switzerland, in particular, is experiencing a striking decline in the number of newly founded companies. Compared to March 2020, 536 fewer companies were founded, which corresponds to almost half the number of start-ups (- 48.03%). Compared with April 2019, 477 fewer companies were entered in the commercial register (- 45.13%). Ticino recorded a reduction of 45 new companies (- 28.85%) compared to March 2020 and 93 new companies (- 45.59%) compared to April 2019. The German-speaking part of Switzerland shows the best results. With 427 start-ups (- 17.30%) less than in the previous month and 350 fewer than in the previous year (- 14.64%), the percentage decline is comparatively small.
Small cantons most stable
In the cantons, too, declines have been recorded almost without exception compared to March 2020. Particularly affected are Fribourg (- 81 start-ups or -59.12%), Geneva (- 180 start-ups or -57.14%) and Schaffhausen (- 19 start-ups or – 63.33%). A similar picture emerges in a comparison with April 2020 (Fribourg: – 73 foundations or – 56.59% / Geneva: – 167 foundations or – 55.30% / Schaffhausen: – 15 foundations or – 57.69%). The cantons which usually have high foundation numbers of German-speaking Switzerland came off surprisingly well. This can be seen in a comparison with the previous month (Aargau: – 50 start-ups or – 19.92% / Bern: – 25 start-ups or – 9.51% / Zurich: – 133 start-ups or – 19.28%), as well as with the previous year (Aargau: – 42 start-ups or – 17.28% / Bern: – 34 start-ups or – 12.50% / Zurich: – 111 start-ups or – 16.62%). The small cantons also proved resistant to the crisis. The canton of Uri, for example, recorded one more foundation compared to the previous month and thus had the same number of new foundations as in April 2019, while the cantons of Basel-Stadt and Obwalden each recorded five more foundations compared to March 2020 (+ 5.43% and + 45.45% respectively).
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