New World Bank Report: Starting a business is complicated in Switzerland

Last week the World Bank Group published its new report "Doing Business 2017: Equal Opportunity for All”. In its global country rankings of business efficiency, Doing Business 2017 awarded its coveted top spot to New Zealand, Singapore ranks second, followed by Denmark; Hong Kong SAR, China; Republic of Korea; Norway; United Kingdom; United States; Sweden; and Former Yugoslav Republic of Macedonia.

Switzerland ranks 31 overall. Regarding the indicator “Starting a business” the situation is even worse. Switzerland ranks 71. This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city.

In several Western countries it is much easier to start a business. New Zealand and Canada are at the top of the starting a business ranking followed by Ireland (10), Sweden (15), UK (16), France (27) and Israel (41).

In addition Switzerland has lost a few positions compared to last year’s ranking. Regarding to the ease of starting a business Switzerland went down from 66 to 71. In the overall ranking Switzerland lost two positions (down from 29 to 31).

Global trend to reforms
The contrasts the development in other countries. A record 137 economies around the world have adopted key reforms that make it easier to start and operate small and medium-sized businesses. “Simple rules that are easy to follow are a sign that a government treats its citizens with respect. They yield direct economic benefits – more entrepreneurship; more market opportunities for women; more adherence to the rule of law,” said Paul Romer, World Bank Chief Economist and Senior Vice President.

Doing Business data points to continued successes in the ease of doing business worldwide, as governments increasingly take up key business reforms. Starting a new business now takes an average of 21 days worldwide, compared with 46 days 10 years ago. Paying taxes in the Philippines involved 48 payments 10 years ago, compared to 28 now and in Rwanda, the time to register a property transfer has dropped from 370 days a decade ago to 12 days now.