Entrepreneurship in Switzerland: business and SME statistics

How many businesses are created each year?

The 46,931 new enterprises recorded in 2023 are economic business births under the UDEMO methodology. They are not simply the number of new entries in the commercial register.

A registration may be part of a legal transaction that does not create a new economic activity. Conversely, the statistical recording of a business need not coincide with its registration. Businesses created from scratch are distinguished from takeovers, mergers and restructuring operations.

Many businesses start with one person

In the 2023 results, 82.1% of new enterprises had just one job at birth. That describes their initial size, not necessarily their legal form.

A one-person business can be a sole proprietorship, but it can also be an LLC (Sàrl/GmbH) or a company limited by shares (SA/AG). It would therefore be incorrect to turn this figure into “more than 80% of new businesses are sole proprietorships” without a separate breakdown by legal form.

For a founder, the practical lesson is to plan how a business with limited resources will operate. Delivering the service, finding clients, handling administration, keeping accounts and collecting payments often fall to the same person. The choice of business structure is a separate decision.

Starting, growing and taking over a business are different activities

Starting from scratch is not the only route into entrepreneurship. Buying an existing business can preserve jobs and customer relationships without counting as a new economic birth. A young business can also grow its workforce quickly without changing its legal form.

Business sales and succession are therefore another part of the renewal of Switzerland’s entrepreneurial landscape.

How important are SMEs to the Swiss economy?

In the official 2023 table of market enterprises, an SME has fewer than 250 jobs. A microenterprise has fewer than ten. This statistical definition does not mean that the same threshold automatically applies to tax rules, statutory audits or a particular support programme.

The same table records 626,033 market enterprises and 4,818,383 jobs in total. SMEs therefore account for approximately 99.7% of enterprises and 66.1% of jobs within that population. These percentages are calculated from the official counts and rounded to one decimal place.

Large enterprises are few in number but account for a substantial share of employment. Counting businesses alone therefore does not tell you how much they contribute to employment.

Regional and sector differences matter

The 2023 SME table records 123,288 SMEs and 580,495 jobs in the Lake Geneva region. This statistical region is broader than the canton of Geneva; its total should not be presented as a Geneva-only figure.

Management needs also vary by activity. A manufacturing business may tie up cash in inventory and equipment. A service business may depend more heavily on staff availability and billable time. Two businesses of the same size can therefore face very different financial constraints.

What do survival rates and bankruptcy figures tell us?

The UDEMO results observed in 2023 show that roughly half of a business birth cohort remained active after five years. A five-year survival rate measured in 2023 concerns businesses founded in 2018, not those founded in 2023.

The distinction between the observation year and the birth year is essential. The five-year survival rate of businesses that have just started cannot yet be known.

A closure is not necessarily a bankruptcy

A business may cease operating because its owner changes direction, retires, integrates the activity into another organisation or encounters financial difficulties. A survival rate is therefore not a direct measure of a new founder’s personal bankruptcy risk.

For 2025, the FSO recorded 12,485 bankruptcy proceedings opened against businesses, an increase of 61.2% over the previous year. The FSO links much of this increase to the change in the legal framework for unpaid public-law debts, while noting that the effect cannot be precisely quantified.

It would be misleading to attribute the entire increase to a weaker economy or poorer business projects. A legal change can alter the number of proceedings recorded. Our article on business bankruptcy in Switzerland explains the procedure and the distinction between financial difficulty and a court-ordered bankruptcy.

Conclusions these figures do not support

Dividing bankruptcies in 2025 by business births in 2023 does not produce a meaningful “failure rate”. The numerator and denominator concern different businesses and different periods.

Similarly, a relationship between initial workforce size and survival does not prove that hiring immediately guarantees success. Sector, funding and the founders’ experience may also play a role.

How to read business statistics accurately

Before using a number in a business plan or presentation, check four things: the source, reference year, population covered and indicator definition.

A recent total-employment figure is not a substitute for a measure of business births. Establishments are not always the same as enterprises, because one enterprise can operate several sites. Jobs are also different from full-time equivalents and from the number of distinct people employed.

Compare like with like

Use a consistent statistical series when assessing a trend. Check for changes in methodology, scope and legislation. A difference between two releases may reflect a statistical revision rather than an economic change.

When comparing regions, raw numbers of business births naturally favour larger populations. A measure relative to population or the number of existing enterprises can answer a different question, but the denominator must be consistent across the comparison.

Date your conclusions as well as your figures

A precise statement would be: “SMEs accounted for approximately two-thirds of jobs in market enterprises in 2023.” That does not mean that two-thirds of Swiss residents are entrepreneurs, or that two-thirds of all public- and private-sector jobs belong to SMEs.

Precise wording may sound less dramatic, but it is more useful to a reader who needs to make a decision.

How can these figures help you prepare your business?

National statistics describe the business environment. They cannot validate demand for your product, your prices or your cost structure.

Start by identifying your customer segment and the problem you solve. Competitive analysis can help you examine existing alternatives and your positioning. Then estimate the sales needed to cover your costs and remuneration. Our explanation of business profit and net income distinguishes revenue from profitability.

Prepare a cash-flow forecast as well. A business can issue invoices and still run short of cash if customers pay after suppliers need to be paid. Cash-flow management should therefore accompany the business plan from the outset.

Finally, review your assumptions regularly: customer acquisition, margins, payment times and recurring business expenses. National data provides context; your own operating figures help you manage the business.

Business creation is only one route into entrepreneurship. Buying or taking over an existing activity raises different questions; our guide to selling a business in Switzerland explains preparation, valuation and the main tax distinctions.

Frequently asked questions about Swiss entrepreneurship statistics