Good - But good enough?

Is there good cause to be optimistic? The coronavirus crisis is certainly not to be taken lightly. But in the short term, real-time data, which NZZ‘s business editorial team updates and analyzes every week, show an amazingly fast and strong recovery. Domestic consumption in Switzerland has already nearly returned to pre-crisis levels. Although the costs of the government crisis measures have run into the double-digit billions, they will only amount to about half as much as feared at the height of the crisis. However, appearances are somewhat deceptive. The recovery in consumption, brisk domestic tourism and unbroken mobility are also linked to the fact that the public sector has largely compensated for the loss of revenues. This cannot continue in the long term. Foreign trade, which is vital for the Swiss economy, remains far short of pre-crisis levels, and some things are unlikely to ever be the same again. That’s not because the pandemic has created a new economic reality, but because it has accelerated structural

change in the economy. Digitalization has once again gained considerable momentum. The loss of income and costs of the crisis are hurting those whose margins and reserves were already thin before the outbreak. Company managers must ask themselves how sustainable their business models are. They have to figure out how they can adapt to the changed conditions so that they will still be stable in the future and have sufficient reserves for the next crisis. Some will give up, others will come to the realization that they will have to cut costs and reduce staff. Because this will take time, Switzerland is likely to face many redundancies and bankruptcies. The COVID-19 crisis is far from over. In order to achieve success in the future, companies need a creative corporate culture that helps them to preserve their core values, to sell goods and services that are difficult to substitute at high prices, and to reinvent themselves continuously. Initiatives like SEF.

Interactive and organizations such as NZZ want to help companies navigate this uncertain environment by analyzing, informing and inspiring leaders and organizations. Of course, the state has a responsibility to establish and nurture business- friendly conditions, but only creative entrepreneurship can drive long-term economic success. Fortunately, there is still a very healthy amount of this entrepreneurial spirit present in the Swiss SME landscape. This is the best reason to be cautiously optimistic about the longer term future for the Swiss economy in these difficult times.

Entrepreneurship: an economic anecdote in COVID

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