Switzerland Facts for Business Purposes
Switzerland’s reputation for stability and innovation precedes it, and individuals looking to start a business in the country will be keen to know the most interesting Switzerland facts. Switzerland has long been a global hub for business and finance but has singularities that would-be entrepreneurs should know before jumping in head first.
Its strategic location, coupled with a robust infrastructure and favourable business environment, has made Switzerland an attractive destination for companies worldwide. Discover everything from languages to working hours to get the full picture of your future as you take your first steps in the Swiss business world.
Switzerland at a Glance
Switzerland is a central European country that punches above its weight in business standings—despite its modest size. The country is known for innovation and boasts a highly skilled workforce. Here are some of the most basic must-know facts about Switzerland:
- Founded: The Swiss Confederation was founded in 1291.
- Population: 8.7 million (2022 figures)
- Flag: The Swiss flag is predominantly red with a white cross in the middle. Interestingly, the famous Red Cross flag is the inverse of the Swiss flag, showing proud Swiss roots.
- Government: The Federal Council, a body made up of seven people, functions as the Swiss government. The members represent the strongest political parties and work together to reach a consensus on how to run the country. Switzerland is considered a consociational democracy.
- Geography: The Swiss Alps cover around 70% of Switzerland’s surface area. Switzerland also has over 1,500 lakes, the most famous including Lake Geneva, Lake Zurich, and Lake Constance.
The following are 15 additional Switzerland facts that will be of interest to business owners and entrepreneurs.
1. Switzerland Has Four Official Languages
Switzerland functions as a multilingual country with four official languages: Swiss German, French, Italian, and Romansh. English is also commonly spoken in international businesses. German is the most widely-used language in the country, with 63% of the Swiss population considering it their first language. This is followed by French (23%), Italian (8%), and Romansh (less than 1%).
2. Switzerland Borders Five European Countries
Due to its location in central Europe, Switzerland shares a 1,935km-long border with Italy, France, Germany, Austria, and the Principality of Liechtenstein. Many people in neighbouring countries commute to Switzerland for work.
3. Switzerland Tops the Global Wealth List
Switzerland topped the list of countries with the wealthiest population in 2022, with the Swiss boasting an average worth of $685,000 (CHF 600,000). Switzerland also has one of the highest proportions of millionaires in the world: 15.6% of the population owns assets worth more than $1 million.
These economic conditions provide an exciting backdrop for budding entrepreneurs. However, business people must also be aware of the high cost of living around the country, especially in Zurich. Zurich is the third most costly city for international workers to live in behind Hong Kong and Singapore according to a 2024 Mercer survey.
4. Switzerland Files the Most Patents Per Capita
2023 saw 9,410 patents filed with the European Patent Office from Switzerland, representing a 2.7% increase from the previous year. This figure puts the country at the top of the list for patent applications per capita and reflects the country’s constant drive for innovation.
5. Switzerland Ranks First in the Global Innovation Index
Switzerland’s reputation as a global business hub is well-deserved and entrepreneurs will find conditions conducive to success. Indeed, Switzerland topped the Global Innovation Index for 13 years straight between 2011 and 2023.
6. Switzerland Boasts a Powerful Banking Sector
Switzerland is home to 235 different banks (as of 2022) that offer a host of financial services including savings accounts, investments, and wealth management. Banks in Switzerland are well known for their confidentiality, security, and stability. It is illegal under Swiss law for banks to disclose bank account information, including the existence of an account, without the account holder’s permission (with some exceptions).
Many traditional Swiss banks require prospective account holders to be Swiss nationals or long-term residents. Check out the best banks in Switzerland for foreigners to find a bank that accommodates newcomers to the country.
Business Banking in Switzerland
Entrepreneurs taking the first steps in their business must research the financial services they’ll require in addition to personal accounts. You will require various financial services if you wish to set up a business in Switzerland. This usually includes a business bank account and a merchant account for payment processing.
A traditional bank or neobank may be able to provide you with a business bank account. In addition, you will need to partner with a merchant services provider to open a merchant services account and gain access to a global payment gateway that can process payments in multiple currencies. This is particularly important in Switzerland due to its location and close business ties with its bordering countries and the wider EU.
7. Switzerland Is a Mecca for Fortune 500 Companies…
Switzerland has one of the highest concentrations of Fortune 500 companies in the world, reflecting its status as a hub for business. Favourable business conditions, stability, and the country’s skilled labour force make it a logical European base for many of the world’s top companies.
… But The Vast Majority of Businesses Are SMEs
The large number of multinational companies doesn’t reflect the reality of business in Switzerland. In fact, over 99% of Swiss companies are SMEs with 250 employees or less.
8. Foreign-Born Residents & Naturalisation
Around a quarter of the Swiss population was born outside of the country. This is higher than the European average of around 10%. Foreign-born residents of Switzerland come from France, Germany, Italy, Portugal, and Kosovo, among others. Around 40,000 people become Swiss citizens every year, representing a high rate of naturalisation.
You Must Be a Swiss National or Resident to Set Up a Business
Despite Switzerland’s high foreign-born population, you must be a Swiss citizen or resident or meet other eligibility criteria to start a business in Switzerland. Make sure you understand all the applicable regulations to avoid administrative problems down the road.
9. The Number of Women in Management Roles Is Rising
Swiss companies are opening the door to more women in top roles. In 2023, women represented 24% of positions on the executive boards of the 20 largest companies in the Swiss Market Index. This puts Switzerland in sixth place in the ranking of European countries with the most board positions held by women.
Quotas Will Mean a Continuing Female Presence in Business
The Swiss parliament voted in favour of enforcing quotas which guarantee a healthy number of women on boards of directors and executive boards. These quotas will ensure that:
- 30% of positions on boards of directors will be reserved for women by 2026.
- 20% of executive boards must be made up of women by 2031.
10. Switzerland Is Working On Workplace Diversity
Though progress is being made, evidence suggests that Switzerland still has some way to go to achieve full workplace fairness and diversity. Research by the National Center of Competence in Research found that Swiss nationals of foreign descent submit 30% more job applications than Swiss nationals to get a call back for a job interview.
11. The Average Workweek is 41.7 Hours
Swiss companies tend to work a normal five-day workweek from 08:00-17:30. A 50-hour workweek isn’t uncommon in Switzerland, but the average lies at around 41.7 hours per week. This compares to an average of 36.1 hours in the European Union.
12. Public Holidays
Public holidays are determined by each canton in Switzerland, with August 1st being the only federal holiday. The total number of public holidays in a given canton averages around nine days per year. Public holidays vary by canton and celebrate religious, historical, and cultural events. If you set up a business in Switzerland, prepare to respect these holidays.
13. Switzerland Isn’t a Member of the European Union
Unlike its neighbours, Switzerland has never chosen to become part of the European Union and only became a member of the United Nations in 2002. Its wealth, political stability, and the wish to maintain the country’s independence and sovereignty are some of the most important factors influencing the decision not to join the bloc.
Though many businesses thrive in Switzerland, it may be worth finding out how setting up a business outside the EU compares to a country within the bloc.
14. Switzerland Is Home to Many International Organisations
Switzerland is a hub for diplomacy, hosting the headquarters of the World Health Organization (WHO), the World Trade Organisation (WTO), the Office of the United Nations High Commissioner for Human Rights (OHCHR), the United Nations (UN) Geneva Office, and the European Organisation for Nuclear Research (CERN).
15. Switzerland Is a Foodie Heaven
Swiss cheese and high-quality chocolate are two of Switzerland’s most famous exports. But just how much chocolate does Switzerland produce for export? In 2021, over 118,000 tonnes of chocolate were exported!
Run a Successful Business in Switzerland
Switzerland’s unique blend of political stability, economic prosperity, and high quality of life makes it an attractive destination for businesses seeking a prime location. Conducting thorough research will help you make the right decisions for your business and start on the right foot.
Setting up a business in Switzerland is an exciting and potentially lucrative prospect. While challenges may exist, the potential rewards of establishing a presence in Switzerland are substantial.
