The start-up spirit powering Switzerland’s post-pandemic recovery – government support, entrepreneurial drive and strong China trade partnerships fuel a bounce back to business
- The country has faced serious hardships brought on by Covid-19, but motivated entrepreneurs and businesspeople now hope to push on to fresh heights
- Covid-19 restrictions have now been almost completely lifted, with life now firmly back to business
The Swiss economy held up better than most developed countries’ in the face of Covid-related economic restrictions, as its GDP dropped by only 2.5 per cent in 2020 – still, its worst contraction in 45 years.
It reached pre-pandemic levels again in 2021 and was projected to grow in 2022, but the war in Ukraine has had a substantial negative impact, as it has for many European economies.
Johan Franzen, the co-founder and CEO of Entnest, a digital start-up ecosystem, believes the GDP figures don’t accurately reflect the negative impact that Covid-19 has had on the Swiss economy, particularly in the realm of entrepreneurship, a major part of Switzerland’s economic lifeblood.
“The Swiss economy did take a big hit since the Covid outbreak and we are only now returning to seemingly ‘normal’ life once again,” said Franzen, who worked at Procter & Gamble for 20 years before founding Entnest in 2015. “Understandably, consumers, businesses, as well as the public sector, focused spending on essentials to manage risk.”
Fortunately, restrictions have now been completely lifted, with the exception of minor restrictions in public transport, hospitals and airports. Franzen said life in general – as well as business – is more or less back to normal, with some industries having already surpassed pre-pandemic highs.
“Covid is now rarely a topic of business conversation, with a focus clearly shifted towards the war in Ukraine and the rising cost of living,” he added.
Government support
As was the case in many countries, start-ups and small- and medium-sized enterprises (SMEs) were hit hardest by the Covid-fuelled economic downturns, as they not only lacked the capital to stay afloat during the difficult times, they also didn’t receive as much support from the government as Frenzen believes they should have. In fact, he believes it was a missed opportunity.
