Which issues are affecting Swiss SMEs? Which trends and challenges are currently shaping the market? KPMG keeps tabs on the latest trends in the Swiss economy: from innovative start-ups to traditional family-run businesses to medium-sized enterprises.
The latest issue of the European Family Business Barometer, a joint annual publication by European Family Businesses and KPMG, reveals a promising development for family businesses in Switzerland.
Swiss family businesses focus on innovation: Our survey revealed that 92 percent invest in new technologiesReto Benz, Partner, Audit
Half of the survey’s respondents feel either confident or very confident about the next twelve months. 46 percent of those surveyed confirmed that they had boosted their sales in the past year and 30 percent of the companies reported that their sales had remained steady over that same period.
The overall study revealed that three quarters of European family businesses felt confident or very confident about the prospects for their family business over the next year. At the same time, however, family businesses in Switzerland are faced with numerous challenges – with the biggest being the war for talent, high non-wage labor costs, increased competition and declining profitability.
Export-oriented companies are paying special attention to the relationship between Switzerland and the EU, protectionist tendencies in the US and general geopolitical uncertainties. Many of Switzerland’s traditional trading partners have become more unpredictable: Germany was left without a government for an extended period of time, Great Britain is very possibly on the verge of a “hard” Brexit and both France and Italy are caught in a reform deadlock.
Of the companies surveyed in Switzerland, 38 percent are planning to expand and diversify their products in order to promote future growth. Nearly half are planning investments in internationalization, while 85 percent of the Swiss respondents are investing in their core business. 92 percent of those surveyed are making investments in innovation and technology, whereas 77 percent are investing in recruitment and training.
The biggest digitalization-related challenge cited by 61 percent of the Swiss family businesses is adapting their business models. All things considered, these companies feel that digitalization offers huge business opportunities. Conversely, it also forces companies to rethink their business models, poses quite substantial risks due to cybercrime and requires that additional efforts be made in the area of data protection.Read the full blog article
Which topics currently preoccupy Swiss SMEs the most? Reto Benz talks about the multifaceted Swiss SME landscape and takes a close look at the concrete pressures small and mid-size businesses are under.
Many of Switzerland’s traditional trading partners have become more unpredictableReto Benz, Partner, Audit
Swiss SMEs form the backbone of our economy. Reto Benz outlines the challenges currently facing local companies and explains how KPMG can offer support.
Which topics are currently preoccupying Swiss SMEs most?
Given that it’s already impacted every part of the Swiss economy, including SMEs, digital transformation is definitely the big one. Digitalization offers huge business opportunities, but it also forces companies to rethink their business models. Other major challenges include the regulatory burden, growing legal uncertainty – such as in connection with the pending corporate tax reform (TRAF) – and the ongoing shortage of skilled labor. Export-oriented companies are paying special attention to the relationship between Switzerland and the EU, protectionist tendencies in the US and general geopolitical uncertainties. Many of Switzerland’s traditional trading partners have become more unpredictable.
Which range of challenges are you seeing at these companies?
“Multifaceted” is a term that not only applies to Switzerland in general, but also to its SME landscape and the challenges faced by these enterprises. While start-ups are chiefly concerned about financing and tax-related topics, family-run businesses often grapple with issues related to succession planning. Digitalization in general might affect each and every company, yet the various industries are finding themselves confronted with different aspects of it.
What kind of support does KPMG offer medium-sized companies in Switzerland?
We are present at eleven locations in Switzerland and Liechtenstein where we offer high-quality audit, tax, legal, accounting, payroll and advisory services. Our clients benefit from our local roots, our multidisciplinary services and our affiliation with KPMG’s international network.
Are you looking for reliable expertise in your segment? Our regional and multidisciplinary teams will help you successfully address each and every one of your business challenges. KPMG has local roots at eleven locations in Switzerland and Liechtenstein which are part of an international network of 154 member firms. We act as your sparring partner and a peer who will guide you through every stage of your business development journey, from founding to succession planning. We work together with you to develop personal, cost-effective and pragmatic solutions – perfectly tailored to meet your precise needs.
Pressure to innovate
New business models
At KPMG, you benefit from a locally based central contact, who combines their comprehensive understanding of your regional market with the knowledge and experience of a global firm.