Startup Report for April 2017 – Strong Decline
A very weak April followed a strong March. Only 3247 new legal forms were registered in commercial registers throughout Switzerland. This corresponds to a decline of 8.02% compared with April of last year. Compared to the previous month, this even represents a decrease of 22.10%. Especially Ticino recorded a sharp decline.
As the Startup Report from STARTUPS.CH shows, April had as few startups as was the case the last time in October 2016. Only 3247 legal forms were newly registered in commercial registers. Compared to the previous year, this represents a decline of 8.02%. The comparison with the previous month is even more striking. The relative decline even amounted to 22.10% in this context. However, this is also due to the fact that March was a particularly strong month for startups.
Strong regional differences
Seen across the language regions, Ticino was affected most with a decline of 14.98%. German-speaking Switzerland also recorded a strong decline of 9.80%. French-speaking Switzerland posted the most constant numbers and a decrease of 2.70%.
In a cantonal comparison, the decline was by far the largest in Jura with 50%, followed by Schaffhausen (-39.39%) and Glarus (-38.46%). These three cantons are among the cantons that tend to have few new commercial registration entries and together make up 1.33% of startups. However, even in the cantons of Zurich (18.05% share of startups), Vaud (share: 11.46%) and Geneva (share: 8.84%) had surprisingly few startups. For example, Zurich recorded a decrease of 10.67%, Vaud 2.62% and Geneva 7.72% compared with the previous year.
Still, certain cantons were able to show increases. Appenzell Innerrhoden increased its number of startups by a whopping 75% compared to the previous year. Uri registered an increase of 33.33% and Valais growth of 12.85%. Unfortunately, these are cantons that do not have a large share of the total. Appenzell Innerrhoden only has 0.22% of startups and URI 0.25%. Only Valais has a significant share of 4.87%.