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New businesses demonstrate fitness for survival

New enterprises have an 80 per cent chance of surviving beyond their first year, according to a study from the Federal Office for Statistics in Neuchatel.

The study followed the fortunes of more than 7,000 companies set up in the period 1996-1997. Four out of five were still in business 12 months later.

But their chances of survival depend largely on which sector of the economy they belong to. In the construction industry, 91 per cent of new companies survived compared to just 76 per cent of those providing financial services.

The size of companies at start-up is also important. The survival rate for firms run by a single individual is around 80 per cent but the figure jumps to 95 per cent for companies with five or more employees.

The study says the number of jobs lost as new enterprises fail is compensated for by those created by the survivors.

swissinfo with agencies

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SWI - a branch of Swiss Broadcasting Corporation SRG SSR

SWI - a branch of Swiss Broadcasting Corporation SRG SSR