Best place to start a business in Switzerland revealed
This year’s Locational Quality Indicator by Credit Suisse has revealed the best places to start a business in Switzerland. While it can be argued that no area of the country is “bad for business,” some Swiss cantons are more attractive to entrepreneurs than others.
2022 Locational Quality Indicator by Credit Suisse
In the annual Locational Quality Indicator (LQI), Credit Suisse analysed and ranked the best areas of Switzerland for business. “The LQI was developed to measure the attractiveness of Swiss cantons and regions, from the point of view of entrepreneurs. It is considered a guide for companies and business leaders who wish to evaluate different sites”, the company explained.
In order to determine each canton’s score, the Swiss bank analysed the following factors:
- Business taxes
- Local and cantonal taxes
- Availability of skilled workers
- How accessible each place is for workers, clients and customers
- Access to public transport (specifically airports)
Each of the 26 cantons is then given an LQI score on either side of the “Swiss average” - which is set at zero.
Canton Zug remains the best place in Switzerland for business
The top of the leaderboard, like last year, was dominated by Canton Zug, with a score of +2,25. Zug, being the home to many international companies, is often voted the best place in the country for business, with competitive taxes and a highly skilled workforce.
Zug was followed by Canton Basel-Stadt with a score of +2. Canton Zurich (+1,25) and Geneva (+1) were placed in distant third and fourth. Zurich, Basel, Baden and Geneva were named as the best areas for access to effective public transport, with three of the four only being 15 minutes away from an international airport.
Cutting taxes the main way for cantons to rise up the list
Canton Nidwalden, which officially has the lowest business taxes in the world, also performed well in fifth. The biggest mover on the list was Canton Schaffhausen, climbing six places to ninth after it cut taxes significantly for private individuals this year.
The bottom of the list has also seen some changes, with Canton Valais (-1,5) overtaking the youngest canton in Switzerland - Jura (-1,6) - to take second-last place. Aargau (+0,6) saw its position drop by two places to seventh - the biggest fall on the list this year.
The best and worst places for entrepreneurs in Switzerland
Overall, according to Credit Suisse, these are the best and worst areas of Switzerland to start and run a business:
- Appenzell Ausserrhoden
- St. Gallen
- Appenzell Innerrhoden
For more information about how the ranking was made, check out the Credit Suisse website.
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