Successful Startups Rather Exception than Rule

(20 Minuten, July 09, 2013)

Switzerland is experiencing a startup boom: More than 20'000 companies were founded in the first half of the year 2013. Especially at universities, there's quite an euphoria about the topic, inspired by the success stories of former startups like Twitter and Facebook, says Alan Frei, who manages the startup platform of the University of Zurich. However, the most recent data from the Swiss Federal Statistical Office show that only every second company is still operating five years after its inception. "These numbers also include small businesses like barbers or craftsmen. For high-tech startups, the survival rate might be as low as 10 to 20 percent", says Frei. Many entrepreneurs work intensly on their product and forget to think about the needs of their customers.