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Report on Company Foundations May 2020: Founding numbers are rising again

After an absolute record low due to the corona crisis, the number of start-ups is rising again in May 2020. With 3319 start-ups, May 2020 is on average according to the records. Compared to April 2020, an increase of 587 start-ups was recorded (+21.49%). However, this means that the past month still lags far behind the record May 2019 figure. Compared with last year, 333 fewer start-ups were registered, a decrease of 9.12%.

Significant increase in the number of start-ups

With the lifting of the lockdown, public life and economic activities resumed. The easing of the lockdown is clearly reflected in the founding figures. In May 2020, 3319 start-ups were registered, which is 587 more than in April 2020 (+21.49%). But the figures are still a long way from the record results of last year. A fact which, considering the past developments, is quite justified. Compared with May 2019, there is a deficit of 333 start-ups or a decline of 9.12%.

After the number of start-ups in French-speaking Switzerland suffered the most from the corona measures last month, French-speaking Switzerland recorded the relatively sharpest increase in the number of new companies founded. Compared with April 2020, 281 more new companies were registered in French-speaking Switzerland in May 2020 (+48.45%). There was also an increase in German-speaking Switzerland (+283 start-ups and +13.87%) and Ticino (+23 start-ups and +20.72%).

Cantons with usually high foundation numbers are stable

The cantons strong foundation numbers are also seeing increases again. In the Canton of Bern, there were 79 new businesses founded (+33.19%) more than in the previous month and even compared to the previous year, an increase of 45 new businesses (+16.54%) was recorded. The cantons of Geneva (+102 new businesses or +75.5%) and Vaud (+78 new businesses or +36.97%) have also recovered from the low level of the corona crises. The figures reflect the renewed increase in the number of start-ups in French-speaking Switzerland. Compared with the figures for May 2019, however, the number of company foundations is still relatively low. In comparison with the previous year, there were 65 fewer start-ups in Geneva (-21.52%) and 82 in Vaud (-22.1%). In the canton of Zurich, 640 start-ups were registered in May 2020. This represents an increase of 83 new businesses (+14.9%) compared with the previous month and a decrease of 28 new businesses (-4.19%) compared with May 2019.

PLC and LTD are crisis-resistant

In recent months, some forms of society have proven to be more resistant to crises than others. While the number of sole proprietorships has risen sharply from 869 foundations in April 2020 to 1130 foundations in May 2020, the number of PLCs and LTDs has remained comparatively constant (PLC: 528 foundations in April vs. 645 foundations in May / LTD: 1056 foundations in April vs. 1267 foundations in May). The non-profit forms of company suffer the most from the crisis. Cooperatives, for example, accounted for 0.11% of the start-ups in April 2020 and 0.12% in May 2020, a reduction of 50% compared to the 0.24% in March 2020.

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