Small and medium businesses in Switzerland and multinational companies

Abstract

The article gives a comparative study of the main elements of Swiss system of business — transnational corporations and small and medium companies (SMEs). Using the methods of statistical analysis, systematic and comparative approaches the author analyzes their role in country economy, modification of activities and changes of their positions in innovative spheres. The author examines the factors of attractiveness and preferences which have influenced the location of TNC headquarters in Switzerland and its new trends. Multinationals are a driving force for Switzerland`s economy development. Swiss multinationals are also leaders in foreign direct investments. The study shows special significance of small and medium enterprises for Swiss economy and exports, their contribution to innovations and R&D. Foreign trade provides the greatest impetus for SMEs growth. The author analyzes the process of internationalization of small and medium companies in specific conditions of small country and their support by different instruments in the framework of three-tier system of interaction (federal center — cantons — municipalities) including financial support and preferential taxation. The federal government supports SMEs in obtaining bank loans by funding loan guarantee cooperatives. As a result it was envisaged that transnational companies and SMEs cooperated in creating a competitive and innovative economy and cluster model in Switzerland. The author notes the negative influence of pandemia on Swiss economy and MNC and SME, but at the same time there are some signs of its recovery.