Swiss Mittelstand: What Should You Know About It?

Small and medium-sized enterprises (SMEs) or “Mittelstand” in Germany, Austria, and Switzerland have successfully weathered economic changes and turbulence. The Swiss Mittelstand sector is the largest employer and educator in the country and is stable.
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“Thanks to the flexible labor market and the high quality of the education system, Switzerland is a typical SME society,” says Prof. Dr. Christoph A. Schaltegger, Director of the Institute for Swiss Economic Policy. According to the Swiss Federal Statistical Office, more than 99% of all companies are precisely small and medium-sized enterprises, which pay less than 250 employees. The Federal Council for Switzerland reports that SMEs provide two-thirds of jobs.

 

Global players as well as family businesses

“What makes Mittelstand so strong is their versatility,” explains Nadia Bischof, Director of Commercial Business at Service Now, which helps digitize and unify businesses worldwide. “In this sector of the economy, we see everything from innovative startups and forward-thinking technology companies to global players, as well as traditional family businesses. The latter in particular often have a close relationship with the local community, so make decisions quickly and respond to market changes with agility.

SMEs also stand for human commitment, leadership by example, social responsibility, sustainability, and international competitiveness. In many traditional SMEs, however, the role of new technologies is underestimated. The paperless office is still one of the biggest obstacles slowing down Swiss SMEs. The goal should be to support employees on the road, in the office, and in the home office as best as possible with flexible working through digital solutions.

 

Sustainability as a challenge

The study 2023 Sustainability: Where do Swiss Mittelstand? by publisher Mazars AG and ZHAW School of Management and Law Institute for Financial Management Winterthur shows that in 86% of cases (500 Swiss SMEs surveyed) it is judged to be completely or somewhat true that company management is noticeably committed to promoting sustainability. For 67%, it is at least somewhat true that sustainable action is seen primarily as a means of strengthening market positioning. The survey results suggest that sustainability issues are a high priority for many of the companies surveyed.

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“We often view large companies as prime examples of innovation and economic growth. But in doing so, we overlook the middle ground where some of today’s most important growth engines are located, and miss opportunities to innovate where it really matters,” Service Now experts note.

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