Start-ups cannot apply for the SMEs financial aid programme because 10% of there revenue would not be enough to save them. In order to enable start-ups in financial difficulties due to COVID-19, the Swiss government has presented a plan to offer loans totaling up to CHF154 million for these companies (swissinfo.ch).
However, this financial aid is largely not enough to be able to save most of these start-ups. After a survey targeting 660 Swiss startups, it has been shown that 70% still cannot survive with the financial aid of the government. (E) In this regard, they depend on investors or business angels who are willing to support them. One of the method for the start-ups to survive is to hope for investors found on websites especially created for individuals to invest in their local businesses in need (see article Individuals and investment). Unfortunately, these would still not be sufficient.
One necessary change is that there needs to be more investment in start-ups when there is no crisis. Individuals and businesses should be more aware of the various new enterprises starting in the country and maybe considering investing into them, helping not only the national GDP if they accomplish their goals and missions, but also allowing to many more people to develop their ideas and hence enhancing the country’s wellbeing and competitive advantage in Research and Development.
Of course, the crisis is a great opportunity for many start-ups to develop or new ones to emerge. As an example, we can think about all the new start-ups that have emerged regarding E-commerce and Delivery, E-health and Telemedicine, Medtech or other services.
It is, to conclude this article, a great opportunity to think about what is really necessary and let people of the country with great ideas make the everyday life easier for the population. Many start-ups might evolve in technology and other Research and Development areas, leading to innovation and creating jobs for the future.