Why Switzerland ranks ‘third-best country in Europe’ for starting a business

Why Switzerland ranks 'third-best country in Europe' for starting a business
Switzerland is great for startups,new study found. Photo by AFP
In a new study ranking the best European countries for startups in 2020, Switzerland came in the third place, after Germany and the UK.

Conducted by a London-based consumer rating firm NimbleFins, the survey ranked 31 European countries based on categories such as Economic Health, Cost of Doing Business, Business Climate, and Labour Force Quality. 

To determine the ranking, NimbleFins analysed data from the World Bank, World Economic Forum, Organisation for Economic Co-operation and Development (OECD), the United Nations Educational, Scientific and Cultural Organization (UNESCO), and various tax consultancies.

While Switzerland came in first in the two latter categories, it scored in the sixth and the 25th places, respectively, for the first two criteria.

READ MORE: Switzerland has the 'most resilient' economy in the world – again 

According to the study, “Switzerland has the highest score for the extent of staff training and quality of vocational training, not to mention the second highest percentage of people having achieved a tertiary education”.

However, the country is “one of the more expensive places to start a business due to high costs of living and salary expectations, and it has one of the lowest expectations for GDP growth”, the study found.

These are the study highlights for Switzerland in 2020:

• Best Business Climate in Europe based on wide-ranging factors such as perceptions of judicial independence, competitive environment and availability of funding. 

• Businesses in Switzerland report having the least issues with regulatory burdens compared to other European countries. 

• Switzerland also has the best market dominance conditions making it easier for new market entrants, such as startups.

Another recent study revealed that Switzerland has the world’s most resilient economy, despite the biggest decline of its Gross Domestic Product “since records of quarterly data began in 1980”.

 

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