Switzerland experienced a sharp rise in company bankruptcies last year, yet the number of new business registrations also grew. The trends varied significantly across regions and industries.

Increase in corporate bankruptcies

According to Dun & Bradstreet, 6,047 companies declared bankruptcy in Switzerland in 2023, marking a 19% increase from the previous year.

The highest rise in bankruptcies was recorded in southern Switzerland, with a 27% increase, followed by Central Switzerland at 23%. Zurich saw an 18% rise, while Northwestern Switzerland recorded a 17% increase. Eastern Switzerland and Ticino both experienced a 15% jump, while the Espace Mittelland region had the lowest increase at 12%.

Impact on different sectors

The surge in insolvencies affected various industries differently. The hardest-hit sectors were mechanical engineering, which saw a 72% increase in bankruptcies, and education services, which rose by 70%. However, these sectors had relatively low absolute numbers.

The skilled trades sector recorded 1,210 insolvencies, a 37% rise, while the hospitality industry saw 770 cases, up 26%. The retail trade followed closely with 412 cases, also a 26% increase. Meanwhile, some industries saw improvements, with insolvencies declining by 7% in wholesale trade, 13% in durable goods manufacturing, and construction.

Growth in new business registrations

Despite the rising bankruptcies, entrepreneurial activity remained strong. In 2024, the commercial register recorded 52,973 new business registrations, reflecting a nearly 3% increase from the previous year.

Southern Switzerland led the growth with a 6% increase in new registrations, followed by Espace Mittelland at 4% and Ticino at 3%. Zurich and Eastern Switzerland saw only a 1% increase, while north-eastern Switzerland was the only region to record a decline of 1%.

Sectoral trends in start-ups

The rise in new businesses varied across sectors. The automotive industry led with an 18% increase in new registrations, followed by land transportation, logistics, associations, education, and manufacturing, each growing by 14%.

Real estate agents and property managers saw a 13% rise, while business service providers recorded a 10% increase. On the other hand, the architecture sector saw a 10% decline in new businesses, and wholesale trade suffered a significant 27% drop.

Overall, while the surge in bankruptcies highlights economic challenges, the steady rise in start-ups indicates continued resilience and entrepreneurial spirit in Switzerland. Photo by Phil Whitehouse, Wikimedia commons.