How Switzerland’s private sector works

In celebration of Switzerland's national day, we examine key sectors, the role of SMEs, and the strengths and challenges of Switzerland's export economy.

The Swiss economy is a diverse and stable one, with key sectors such as pharmaceuticals, financial services, precision engineering and the watch industry. These industries are major contributors to the country's GDP and are globally recognized.

SMEs: The Backbone of the Economy

Small and medium-sized enterprises (SMEs) make up about 99%! of all companies and are crucial for driving innovation and creating jobs. They specialize in niche markets and are known for their adaptability.

Switzerland benefits from a highly skilled workforce, a strong education system, and a stable political and economic environment. These factors create a favorable business climate.

Strengths and Challenges

Switzerland has a strong export economy, with around two-thirds of its goods being exported. Major export destinations include the EU, the USA, and China. Key exports are pharmaceuticals, machinery, chemicals, and watches. The high quality and innovation of Swiss products give the country a competitive edge in the global market.

However, the Swiss private sector also faces challenges. High labor costs and a strong Swiss franc can make Swiss products more expensive and less competitive internationally. Additionally, the country's strict regulations and high standards, while ensuring quality, can sometimes lead to increased production costs and slower market entry for new products.

Switzerland is also a leading foreign investor in Bangladesh. Major Swiss investors operate in all crucial economic sectors, providing the Bangladeshi market with best-in-class, quality, and advanced products, technologies, and services and creating jobs.

Trade Relations with Bangladesh

Switzerland and Bangladesh share a dynamic trade relationship. Swiss exports to Bangladesh mainly consist of machinery, pharmaceuticals, and chemicals, while Bangladesh exports textiles, garments, and agricultural products to Switzerland. Swiss companies are increasingly becoming advanced technology suppliers for the local market and businesses, enabling the expansion of the latter. This bilateral trade has been growing steadily.

Support for Export Activities

Switzerland Global Enterprise (S-GE), the official Swiss organization for export and investment promotion, plays a crucial role in supporting Swiss companies in their export activities. S-GE provides consulting services and market analysis to help companies access new markets and enhance their international competitiveness. By offering expert guidance and resources, S-GE helps Swiss businesses navigate the complexities of international trade, ensuring they remain competitive on a global scale.

For more information, visit https://www.s-ge.com/en.