5 Reasons Why Switzerland Is a Global Key Market for Business
Despite the high living cost, Switzerland stands as one of the largest global business hubs. The country hosts more than 600,000 local and 25,000 multinational businesses that contribute to its GDP, valued at a whopping 748 billion USD (2020).
The Swiss financial system provides ideal conditions to launch and stabilise start-ups, ranking it a top competitive capacity as per the World Economic Forum. Several factors, such as highly-skilled labour, advanced economy, transparent and favourable business policies, and multilingual approach through Swiss German translation service, make Switzerland a centre of commerce.
This article explores the business market in Switzerland and lists various reasons behind the business boom in the country.
How Big Is the Business Market in Switzerland?
With a GDP rank of 18 (as of 2021), Switzerland’s economy is one of the strongest in the world. Interestingly, the service sector alone generates 74% of this GDP.
The following points include data and stats that indicate Switzerland’s success as a lucrative business hub:
- More than 5% of the globally registered companies successfully operate as a multinational in Switzerland.
- Foreign companies employ approximately 1.3 million people in the country.
- Switzerland serves as a critical location for the research and development of Google products, such as computer engineering, Google Kubernetes Engine, Cloud Bigtable, etc.
- Business giants like Nestle, Zurich Insurance Group, Credit Suisse, Glencore International, etc., have headquarters in the country.
What Makes Switzerland an Ideal Global Market for Business?
The following are the primary reasons that make Switzerland an attractive market for businesses, both small and medium-sized businesses (SMBs) and corporate giants alike:
Highly Competitive and Skilled Workforce
One of the critical reasons foreign corporations take to Switzerland for business is the country’s highly competitive and professional workforce.
After nine years of obligatory schooling, about two-thirds of teenagers switch to Vocational Education and Training. When people are inclined to get hands-on experience in a workplace from a young age, it helps create many skilled and highly professional labourers, essential for the economy.
Moreover, Swiss employers also accommodate and encourage young professional talent, further contributing to the culture of preferring vocational training over tertiary degrees.
Swiss nationals are known for their innovative skills and professional behaviour, and thus, multiple multinational companies hire locals to build a competent team.
Integration of Multilingualism in Business
It has been statistically proven that multilingualism in business single-handedly boosts the economy. Switzerland, too, owes a large proportion of its success as a business market to multilingualism.
At the societal level, the country has managed to integrate the use of multiple languages, and as per a report, two-thirds of the Swiss population is fluent in more than one language. This automatically increases the pool of potential employees, but multilingualism also helps increase business exports.
The increasing demand for expert translation services agencies, indicates the growing inclination of foreign corporations towards adopting multilingualism for brand expansion.
The worth of the translation industry in Switzerland amounts to USD 88.09 million. Countries in the EU and Britain consider the Swiss market extremely important and, by extension, the languages that are spoken there. So a professional translation agency would provide translation services for businesses engaging in the Swiss and global markets.
Besides, knowing multiple languages facilitates inter-business connections, allows better representation in front of large corporations, and opens doors for investments, all of which is helped due to the Swiss culture of multilingualism.
Access to European Union (EU)
Running a business in Switzerland paves easy access to the EU market. As per the Swiss-EU Free Trade Agreement of 1972, foreign and local Swiss companies get direct access to the EU and members of EEA/EFTA without any tariffs.
According to a report, Switzerland’s exports to the EU amount to 43% of its total exports. Moreover, 66% of imports in Switzerland are from the EU.
This bilateral goods trade facilitates brand expansion and marketing to a more extensive potential consumer base. Additionally, it also favours B2B relationships and provides an excellent opportunity for SMBs to draw in funding from big companies and investors.
Financial Support from Government
Switzerland is home to thriving small businesses, and financial security is one of the key factors people tend to invest in starting and running a business comfortably.
During the pandemic, the Swiss government also introduced multiple financial support programs to help small businesses out of the financial crisis.
Apart from that, many large Swiss corporations offer grants to SMBs, which helps them raise capital to start and run the business. Besides monetary support, small businesses also benefit from free equipment and reduced costs. In conjunction, all of this support from the government ensures stabilisation.
Light Touch Regulations and Strong Legal Support
Switzerland’s law allows foreigners to run their businesses in the country efficiently. What’s more is that the government does not have strict regulations in place for foreign companies, which facilitates brands to register and operate efficiently.
Although lack of proper laws sometimes puts businesses at risk, they can always rely on the transparent and highly-regarded Swiss legal system for representation and resolution of disputes.
Switzerland has long been studied as an ideal business model. The growing number of successful small businesses and headquarters of leading corporate giants indicates that the country is indeed an attractive location for companies worldwide.
The strategic location, Swiss EU trade relations, brilliantly skilled young professional labour, and financial support from the government are just a few things that have led the country to become a global business market.
Apart from this, another critical factor responsible for the business boom in the country is multilingualism. Speaking multiple languages is encouraged at a societal level, which benefits local and foreign businesses.
The growing demand for Swiss German translation services is a testament to the fact that multilingualism has contributed to business stabilisation and expansion in Switzerland. Therefore, more companies are hiring translation agencies to represent their brand to potential consumers as well as other businesses.