Long days, short nights: you pay a high price for independence. But your hard work can be rewarding.
What are the chances of success for entrepreneurs launching their own company? It is important to know that despite the motivating aspects of independence, starting your own business can be difficult from a financial perspective. In most cases, during the first year, start-up companies will be in debt. And the second year is spent trying to compensate for this deficit. If all goes well, companies will generally only make a profit in the third year.
To substantially increase your chances of success, the two questions you must first ask are:
- How much money do you need during the start-up phase for yourself and your family?
- Can you retain that money, despite high initial investments?
Anyone who is not intimidated by these risks has an essential prerequisite: self-confidence.
Independence comes at a cost
Anyone who wishes to move towards independence must be conscious of the amount of work that will be expected. Long days and short nights are a common feature of the life of young entrepreneurs. However, despite the sacrifices they make in giving up some of their free time, entrepreneurs also experience high levels of satisfaction. Several studies have shown that they are often happier than salaried employees.
It is also important to know that independence is a risky business. Many people who set up their own business go bankrupt in the first few years. According to the Swiss Federal Statistical Office (FSO), 8.7% of self-employed workers were affected by poverty in 2017, compared with only 3.7% of employees. Self-employed single proprietors with no other employees are particularly affected by this trend (9.3%).*
Small and medium-sized enterprises (SMEs) are the backbone of the Swiss economy. Over 99% of local companies employ fewer than 250 people full time, which is an encouraging sign for founders of small companies in Switzerland.
One final aspect to emphasize relates to the chances of survival of start-ups in Switzerland: it is somewhat higher in the secondary sector than in the tertiary sector.
*Source: FSO, Poverty of Employed Persons, Neuchatel, 2017
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Last modification 25.10.2019