The modern age of computers and information has been kind to the people of Switzerland. From software engineering to rocket science, nearly every aspect of the Swiss tech industry has benefited from the world’s demand for anything that helps them perform daily tasks safer and more efficiently. The Swiss tech industry’s ability to meet this demand has created thousands of high-skilled jobs, and the economy of Switzerland continues to rival some of the largest markets on the globe.
Why are Swiss companies extremely innovative while the rest of the world follows the status quo? Many economists and finance experts across the globe have attempted to answer this question by analyzing Swiss governance, subsidies, culture, and other topics, but they missed a key element of Swiss tech industry. Like America’s Silicon Valley, Switzerland is a hub for tech startups. Zurich’s Swiss Federal Institute of Technology alone has spawned over 400 high-tech startups.
Startup Behavior Triggers Growth
Since the tech industry is saturated with established companies that enjoy annual profits, startups are required to be disruptive. In other words, the small company must serve consumers in a way that large companies have not already considered. This disruption often comes in the form of new ideas that solve consumer problems. If the startup’s entrepreneurs can convince people that their product will serve a market need, consumers will benefit from new technology, and the startup will earn revenue.
A high number of startups supports the economy in several ways. First, startups behave in way that is different from typical corporations. Instead of focusing on tried and tested production methods and ideas, startups are desperate to introduce the market to disruptive technologies that will capture the attention of consumers. In short-run timelines, this results in fierce competition between small companies. Many startups fail due to this competition, but surviving firms often learn how to grow into greater companies. In long-run timelines, large companies will begin to compete with the smaller firms by dedicating a larger portion of their budgets to research and development. In the end, consumers benefit from better technology, and workers have more job opportunities.
Startups often have cultures that are completely different from the corporate attitudes of multinational corporations. With small teams who are dedicated to a single goal of success, members of startups can think outside of the box. This can result in either extreme failure or revolutionary ideas, but even minor successes can impact the way companies operate in the tech industry. In other words, failed firms can also have a positive effect on the Swiss economy.
Startups also result in some intangible benefits that are often overlooked by policy analysts and economists. For many young people, startups are inspirational. Successful startups demonstrate that it is possible for people to bring their ideas to life. They show that young people can take smart risks to earn massive rewards. Most importantly, startups give people hope that they can control their own destiny if they do not mesh with traditional employment options.
Swiss Entrepreneurship Experts Aid Startup Growth
Many finance professionals and business experts have recognized the entrepreneurial spirit of young people in Switzerland. To earn revenue while supporting startups, many of these professionals have banded together to offer guidance and funding to new companies with great ideas. The Swiss Startup Factory is a leading investment group that helps entrepreneurs form financially viable companies that develop disruptive technologies.
The Swiss Startup Factory has existed since 2014, and it is headed by Mike Baur. Mike Baur is a finance professional with an impressive record. After studying banking and finance at the University of Bern, Baur became an apprentice at UBS. From there, he climbed the ranks of the banking industry to become a member of a Swiss bank’s executive board. This journey taught Baur the ins and outs of the finance industry, and he decided to use this knowledge for investing. Mike Baur eventually decided that he wanted to support the goals of young entrepreneurs in Switzerland. This prompted him to launch the Swiss Startup Factory, a leading source of financing and business mentoring for early-stage startups. Baur continues to lead the Swiss Startup Factory as CEO. He is also the director of the Swiss Startup Association.
Startup organizations like the Swiss Startup Factory have supported several leaders in the tech industry. One of the highest performing startups in Switzerland is Bcomp AG. This company uses high-efficiency products made from natural composite materials to replace traditional building materials in structures. Using the latest breakthroughs in material science, Bcomp AG’s products are stronger and safer than aluminum, fiber-glass, and carbon composites. CarCodex, a software application, is also expected to lead the tech industry by helping consumers find and compare automobiles. Startup company Gamaya SA aims to revolutionize global agriculture with new and sustainable farming technologies.
All of these featured startups differ from mainstream corporations by focusing on the demands of the future. This attempt to disrupt the market results in remarkable technologies that make the world a more prosperous place.