How Economic Growth Impact Businesses in Switzerland 2019

Switzerland is a beautiful and peace-loving country. It is a landlocked country and is geographically divided between the Swiss plateau, the Jura mountains and the Swiss Alps. It has a long history of following non-violence and has not been in any war since the year 1815. But don’t let the calm demeanour of this country fool you. Switzerland is one of the most developed countries in the world and consists of two global cities which are Geneva and Zurich.

This country has various accolades under its belt. In the Global Competitiveness Report (GCR) by the World Economic Forum, it is ranked as the most competitive country in the world. It has one of the most stable governments in the world and is a home for a number of multinational co-operations. 15 of the top 400 Forbes companies are located in Switzerland.

Let’s deeply analyse the present economic conditions of the country and what are the opportunities that present itself for business in Switzerland.

Current Economic Situation

It is projected the growth rate will continue to rise for the country and the government is now taking steps to strengthen its hold on the economy of the country. It has reformed its banking secrecy laws and is now ready to follow the rules and regulation as stipulated by OCED. Some of the key facts about the economy in Switzerland are as below:

  • Switzerland has a strong economy and is ranked 2nd when it comes to GDP per Capita. It is expected that the GDP growth rate in Switzerland would increase by 1% by the year 2020.
  • Almost 75% of the GDP is fuelled by the service sector and around 20% by the industry sector. The agricultural sector contributes around 1% of the total GDP of the country.
  • Switzerland conducts most of its trade with the European Union. Around 40% of the total exports of Switzerland end up directed towards the European Union.
  • The entrepreneurs prefer Small and Medium Enterprises more in Switzerland. This is evident by the fact that more than 90% of the business enterprises in Switzerland are SME’s.
  • The VAT rates in Switzerland but were decreased more after an amendment was made and brought into effect on 1 January 2018. A rate of 7.7% is levied on normal goods, 3.7% for staying in hotels and a minimal rate of 2.5% for books, food, water etc.

These are some of the key factors which form very crucial factors which attract the entrepreneurs to Switzerland. The Swiss government is gradually understanding the impact the FDI will make on the economy. Keeping this in mind the government has started an initiative for supporting start-ups. This fund would aim at raising as many funds as it can to help the budding entrepreneurs and businessmen.

Let’s focus on some of the business opportunities in Switzerland.

Business Opportunities in Switzerland for You

If you are looking to enter the Switzerland business market, we have chosen some business options for you which seem to be very feasible and profitable.

1.Data Analysis

Switzerland is one of the most competitive countries in terms of business. With the advancements in technology, companies nowadays require to analyse the data produces by them to grow further in the future. The field of data analysis is very new and beneficial for companies. The good thing is that every company requires the analysis of its data and its future in Switzerland is very bright as it is one of the most important business hubs of the world.

2.Leasing of Office Space and Related Equipment

As the country is an important destination for setting up various new businesses, this business would be very profitable. To get office space at a short notice and all the related office equipment such as paper, photocopiers, fax machines, stationeries, computers, photocopiers, inks etc. at one place would be very time saving for the companies.

3.Offshore Management

Switzerland is one of the favourite places to setup an offshore account. This would present an opportunity and you can go into the field of managing the funds and account of the foreign businessmen. You would be the sole point of contact regarding their offshore account.

4.Consultancy

There are entrepreneurs who are daily looking for business opportunities in Switzerland. By opening a consultancy business, you can provide a direction to these entrepreneurs. You need to keep yourself updated regarding the new rules and regulations in the country and how a business can take advantage of it.

5.Travel and Tourism

Switzerland is a beautiful place to visit. The country gets regularly visited by tourists from all over the world. There are many avenues within the travel and tourism industry in which you can setup your business such as the hotel industry, booking of travel tickets, travel packages, etc. As the standard of living is increasing all over the world, the number of tourists to the country is steadily increasing, which means that setting a business in the travel and tourism industry would be a very viable option.

If you are looking to plant a foot in the Switzerland market, in such a case the business options mentioned above would provide an easy way to make a niche for a businessman in Switzerland. There are many other opportunities which can be explored by an entrepreneur according to his ease.

Starting a business in Switzerland is a very big decision and would require a lot from your side. If you do not want your efforts, time and resources to go to waste, it is suggested that you take the help of a business consultant before setting up a company in Switzerland. One such management consultancy firm which can help you in setting up your business is Business Setup Worldwide.

Business Setup Worldwide will provide you with all the necessary resources and advice with which incorporating a business in Switzerland would be an easy process. We would take care of all the various business setup processes and allow you to focus more on the development of your business. We also provide various other services such as Bookkeeping services, Accounting services, services for the protection of intellectual property, etc. For details about the various services we provide do contact us – we would be happy to help.

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About the Author

prajakta.deshpande@bsworldwide.com's picture

Prajakta Deshpande is a digital marketer who possesses escalator wit and elevator wisdom. She prefers tea over coffee, books over movies, and dogs over humans.