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Innovative start-ups: Established companies learn from newcomers

Innovative start-ups: Established companies learn from newcomers

Start-ups keep popping up like mushrooms. Many of them disappear again, but some with their ideas prevail on the market. Even established companies can still learn a lot from these founders, because it is not uncommon for ideas and approaches to be recognized here that have what it takes to change the world.

Characteristics of good ideas

A good idea is not necessarily only characterized by the fact that it seems easy to implement and that it meets a willing market. There are other characteristics that can be used to identify a good business idea. Very important: the idea takes advantage of a trend. This must not be fully developed, but should rather be in the making. The team that wants to implement the idea must be innovative and should have the ability to turn an idea into a product. It is interesting that an absolutely unique position in the market can even be negative. Because: where there is no competition, there is usually no market. A complete niche product or a super special service does not necessarily have to be good!

In addition, founders of start-ups usually have the necessary motivation to really want to implement their idea. They put everything on one card and bring time and money with them, although they often don't have enough of both. Failures are common, setbacks are normal. They have to be accepted and make the founder stronger. They point out weaknesses that need to be improved and show what cannot work in which way.
In addition, good ideas are spread through networks that are not held together by money. While a certain income or a market position is often decisive for being accepted into a network in established companies, this is not yet the case with start-ups. Shared values and belief in the idea are much more important here. Exchanging ideas with others can maximize profits and reveal mistakes that the founder himself does not see.

The hunger for success must remain

Too quick success can be counterproductive. If a team makes profits too quickly and can place the product directly, the hunger for success often diminishes. Mistakes are made and tolerated, the will to improve something no longer exists. At the same time, the ability to change strategy is lost. If you want to be successful, you have to adapt, and that includes constantly rethinking your own strategy. Especially in the early phase, when there is little money available, the strategy has to be repeatedly adapted to the current circumstances, which sometimes seems quite difficult. Anyone who tries anyway will be rewarded with success. This in turn keeps the sense for new attempts and experiments. At the same time, the vision remains to offer customers something unique and simply to be better than others.
Important skills that a founder brings and that are important for a well-established company can therefore be the following:

    • Ability to adapt is retained
    • agile thinking is present
    • Strategies are adjusted
    • the unconditional will to succeed remains
    • Data evaluations and analyzes are used to find new ways
    • Team remains independent and still uses the skills from the network

Conclusion: Established companies learn a lot from start-ups about the right attitude

Many established companies look down on startups from above. Nevertheless, the founders have some skills that can be of benefit to long-established companies and that allow them to advance further on the ladder of success. Networks should not only be created and used according to status, but above all take personal components into account. The absolute will to succeed must remain, and no one should be discouraged by setbacks. Rather, it is important to adapt and find new ways instead of sticking to the old one. Even if the start-up idea may fail, it still provides valuable information for other companies.

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IT security: This is important for Swiss SMEs

IT security: This is important for Swiss SMEs

The corona crisis has also brought numerous changes for Swiss companies. Among other things, more people than ever work in the home office. This entails security gaps that have to be closed with the right product.

Corona influences SME decisions in terms of IT security

For a long time, the issue of IT security was seen as important, but it did not receive the necessary attention. However, since more and more employees have been working from home, the number of hacker attacks has also increased. These try to gain access to sensitive data via the networks and the more people work outside of their actual company location from anywhere in the world, the greater the security gaps. No wonder, then, that the survey now shows that SMEs feel influenced by Corona and, accordingly, purchasing decisions with regard to IT security products are made more consciously. In Switzerland, around 84 percent of companies are now of the opinion that they will be influenced by Corona in terms of IT security. For comparison: in Germany only around 50 percent of SMEs feel that their IT security is threatened by Corona. The purchase decisions for IT security products are not made by the company bosses, but in most cases by the IT managers. Around 68 percent of the companies pursue the so-called single vendor strategy, in which all products are bought from one provider.

No cloud-based security required

In Switzerland, in contrast to the other countries in the DACH region, no cloud-based security solution is required. Or rather not a pure cloud-based solution, because only around 18 percent of companies want to know something about it. On-premises solutions are also only asked by 22 percent. What is desired, however, are managed service providers, here Switzerland is the absolute front runner and depends on Germany and Austria. However, Austria will catch up, at least this is what the SMEs suggest, who take part in surveys on relevant questions and express themselves in this way.

How should IT security be?

IT security products are selected according to very specific criteria. The main thing is that they should be easy to use, because hardly any employee in the company should need a long introductory period for a new product. Rather, the products should be installed and provide their service without any restrictions or massive innovations being associated with them. Ease of installation is already an important point that is taken into account when choosing IT products. Many Swiss orientate themselves on test reports and are not only guided by the name of the respective product. The SMEs or those responsible in the company read the reports and recommendations of the resellers and only then make a decision. Last but not least, the price plays a role for the choice, because even a very good IT product that is offered at high sums is not likely to be chosen if it is perceived as too expensive. Conversely, however, it is not the very cheap products that are referred to as first choice, here a lack of benefit is often assumed.

Conclusion: Swiss SMEs are increasingly relying on IT security

Times have become uncertain and this is not just about security, which is no longer so self-evident due to Corona. SMEs in Switzerland also have to struggle with a lack of security, because cyber attacks are becoming more and more frequent. It is even assumed that the number of hacker attacks has increased to over 200 percent compared to 2019. The topic of IT security is therefore becoming particularly relevant and receiving more attention than ever. The companies rely on well-known products that are easy to install and easy to understand, that have performed well in test reports and that are not too expensive. A fair price-performance ratio is particularly important for SMEs in Switzerland.

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Free trade agreements are profitable for SMEs

Free trade agreements are profitable for SMEs

The State Secretariat for Economic Affairs has published a study on how companies in Switzerland use the free trade agreement. You can save customs duties, which amounts to several billion francs a year. It is mainly SMEs that benefit from the regulations and not only the large corporations, as was once feared.

SMEs have above-average profits

It was once feared that SMEs would be the big losers of the free trade agreement and that it would be the large corporations who would benefit from the agreement. But far from it, as the study by the State Secretariat for Economic Affairs has now shown. In reality, SMEs benefit most from the agreement and enjoy greater freedom of competition. The SMEs are effectively using the agreement to cut tariffs and are doing so in the billions. For comparison: SMEs saved around CHF 1,134 billion in 2019, while large companies with more than 250 employees were only able to save around CHF 728 million. Around 140,000 companies made use of the fact that import duties were lower in 2019. More than 55,000 companies even use the advantages for every transaction.

The greatest savings opportunities for SMEs have come from special products. Paper products and cheese as well as plastics should be mentioned here in particular. The greatest savings are made with imports from Germany, China, Austria, France and Italy, while the greatest savings on the export side are for watches, precious metals and machines. For experts, the data clearly shows that Swiss companies are in a position to make clever use of the advantages offered by the free trade agreement. However, imports from China and Germany show that there is still room for improvement.

The export economy is dependent on the free trade agreement

The export economy benefits to a large extent from the free trade agreement, which has become almost indispensable for the economy. As a result, new sales markets can be identified, and the movement of goods into and out of Switzerland is reduced. The agreement thus ensures better framework conditions with regard to the Swiss economy and also ensures that the competitiveness of Swiss SMEs is maintained and improved. As the Swiss economy operates globally and is strongly networked, this knowledge is of particular importance.
A free trade network is currently being used, which consists of 30 agreements with 40 partners. Its expansion is a central point of all action and the aim is to continuously develop the network. This will also remain important in the future, although the next step has already been taken with the ratification of the agreement with Indonesia on March 7, 2021.

In the future, the free trade agreements are also to be improved, which should be possible on the basis of a broader data base. This is intended to identify new measures with which products with high tariff savings potential are to be promoted. Against this background, the most important thing is the dismantling of industrial tariffs in Switzerland, so that companies can be relieved of administrative burden when importing.

Conclusion: Free trade agreements are a win for SMEs

So far it has always been assumed that SMEs are more likely to be losers than winners in relation to the free trade agreement. But far from it, because they achieve significantly greater savings than large corporations through the agreement. In the future, however, the aim now is to further strengthen the agreement and to achieve greater networking of the Swiss economy.

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Despite Corona, SMEs are investing in more security

Despite Corona, SMEs are investing in more security

Security provider Eset has started a survey on how security is doing in SMEs in the Corona crisis. It turned out that many companies are now planning to increase security and, contrary to popular belief, do not want to save on this point as well.

Security in companies: Home office as a security risk

What was unthinkable for a long time is now a reality: More and more employees are working from home and are accessing company data from their house or apartment. Networks were opened for this to ensure access to the data. But the employees' devices are exposed to great dangers as a result, and the networks of the companies are more vulnerable to working from home. The study by the security provider Eset has now shown that many companies want to invest in increased security precisely because they feel more vulnerable. You want to rely more on centrally managed security solutions and improve with firewalls and virus scanners. Around two fifths of the companies are already working with encryption technology, and other companies would like to improve this too. But at the same time there is a certain amount of ignorance: Many do not even know how to increase security and what to do to protect the data on the company's computers and in the home office.

What is difficult is that GDPR-compliant work at home is assessed as difficult or cannot be implemented at all. Often even sensitive data is only protected with a password, which in turn can be easily cracked. Only a third of all companies protect access to the servers through VPN networks or two-factor authentication. What was previously neglected is now taking revenge.

Positive aspects of the survey

The survey among the more than 100 companies showed not only opportunities for improvement, but also positive things. The companies are aware of their responsibility and have already done a lot to keep the security of the networks and data as high as possible. Even if many companies have stumbled financially due to the Corona crisis, many of them want to try to bring more money into the security sector. The point is to use improvements and new products to enable work in the home office in the long term. Because there is no end to the crisis in sight and for the time after that, there are already calls from employees that they want to continue working from home.
The funds that companies plan to increase security should primarily be used for encryption solutions. Virus protection is to be improved, and two-factor authentication is to become standard. VPN and managed services are also on the investment plan.

Security providers benefit from the corona crisis

The security providers will definitely benefit from the Corona crisis because they are calm about the companies' willingness to invest. The companies in Switzerland want to invest more in the security of the company and will need new solutions for this, which above all secure work in the home office and protect sensitive data.

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Swiss SMEs feel abandoned

Swiss SMEs feel abandoned

The consequences of the corona crisis can be felt above all for SMEs, which feel that they have been left in the lurch according to their own statements. Many companies are of the opinion that the governments abroad are much more generous and would find better or easier solutions.

Insufficient Corona aid for SMEs?

Throughout Switzerland, and especially in SMEs, the daily issue is that the hardship aid is inadequate. Many industries and thousands of entrepreneurs see a problem: On the one hand, Switzerland is considered one of the richest countries in the world, on the other hand, hardship aid is only paid meagerly. Despite the corona pandemic, the country's debts are at a record low level and yet the country pays little or no aid. The companies are affected by a drop in sales and receive no help, the Swiss government is assumed to be more stingy than any other government of an industrialized country.

In mid-September, the issue was that the corona emergency aid should amount to up to 4.8 percent of the gross domestic product. That was very little, because in Germany it was around 8.3 percent, Great Britain even paid around 9.2 percent. Japan (11.3 percent) and the USA (11.8 percent) were even better positioned. The companies in Singapore were even better off, because up to 16.1 percent of the gross domestic product was distributed there as part of the corona emergency aid. With Switzerland, however, Italy and Spain are more comparable, paying 4.9 and 3.5 percent respectively. However, both countries are groaning under a high mountain of debt and therefore cannot actually be compared with Switzerland. Sad: Even significantly poorer countries support their SMEs more than Switzerland! For example, around 8.3 percent was paid in Brazil and around 5.3 percent in South Africa.

Stinginess with consequences

The SMEs in Switzerland are groaning under the burdens they are subjected to as a result of lockdown and the various measures. The catering industry in particular suffers, and the event and travel industries also suffer significant losses. Many small business owners now have to go to their retirement provisions and tap into the reserves there because they can no longer save their livelihoods otherwise. Many of them feel abandoned by the Swiss government. This is above all against the background that hardship compensation has long been promised in Switzerland, but it is never paid. Around 2.5 billion Swiss francs have been approved, but the Federal Council, Parliament and the individual cantons do not currently see themselves as having an obligation to do anything for SMEs. Of the aid approved, just CHF 8.4 million has been paid out to SMEs so far, which is less than half a percent. The reason for this is the particularly strict payment requirements. There is only money at all if the decline in sales is at least 40 percent and even then a maximum of ten percent of sales are paid out to the companies. However, companies have been suffering for a long time and a permanent drop in sales of 35 percent also inevitably leads to bankruptcy.

Conclusion: Swiss SMEs can no longer stay afloat

Swiss SMEs are currently having a hard time and will continue to suffer in the coming weeks. The reason is the high demands on the payment of the corona aid, whereby Switzerland is now under strong criticism. The bourgeois politicians in particular are now being tackled as to how they set the requirements for hardship measures far too high and, for example, still vehemently reject the long-term demand for compensation for loss of rent, according to the opinion of many SMEs. There is now talk of another aid package, which may mean a little light at the end of the tunnel.

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Despite the crisis: Swiss SMEs are optimistic about the future

Despite the crisis: Swiss SMEs are optimistic about the future

Facebook, OECD and the World Bank started a survey among SMEs in December and wanted to know how optimistic or pessimistic they are about the future. It turned out that they expect positive things, despite all adversities.

Digitization as a support for SMEs

The ongoing corona pandemic has plunged many companies into a deep crisis. Nevertheless, most SMEs are optimistic about the future, also due to the significantly improved use of digital possibilities. Above all, the companies that are already well positioned digitally and have a functioning online presence were optimistic. According to surveys, around 25 percent of them can generate their income digitally. The Swiss are still behind France and Italy, but already ahead of Germany. The front runners in a European comparison are Ireland and Great Britain, some of which can generate significantly more than half of their sales online.

Record decreased revenue

Despite all the optimism, it must be noted that the income of SMEs in Switzerland has fallen significantly compared to the previous year. Around 54 percent of the companies state that their sales have fallen significantly in some cases. The increased use of digital possibilities cannot completely cancel out this loss of sales, so that the crisis is definitely a serious burden for Swiss SMEs. Now companies say that only a digital take-off could bring the rescue, because how long restrictions and burdens from Corona will last is not certain.

Digitization as a way out of the crisis

It can also be assumed for the future that digitization will not decline again. This means that companies must continue to strive to further expand their online presence. Everyone is looking ahead and hoping for the effectiveness of the vaccination and medication to restore an almost normal state. What this will look like is still uncertain. The fact is, however, that SMEs will have to continue to appear online in the future. They are searched for and booked on the Internet, price comparisons are made and companies are checked for reliability. Those who cannot be found online will find it even more difficult in the future to gain a foothold or to keep pace with growing digital competition.

Conclusion: SMEs are optimistic, but have to get started

Even if SMEs are currently optimistic about the future and assume that the current crisis will soon be over, it is important to prepare for the new life after Corona. This in turn means that companies will have to rely on digitization even more than before. The employees who now work in the home office will soon be increasingly calling for this option, especially since the work-life balance, which has also increasingly come into focus, is easier to implement. From a market point of view, no company that wants to remain competitive in the long term will be able to avoid an online presence or the expansion of it.

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Important contact point for SMEs: new knowledge platform "bexio University"

Important contact point for SMEs: new knowledge platform "bexio University"

Anyone with a legal question can in future have questions answered free of charge over the phone. This is made possible by Protekta's JurLine, which was integrated by bexio. Bexio is a business software company and has? Bexio University? founded.

Safe and efficient business processes possible

With the University platform, Bexio wants to ensure that SMEs in Switzerland can plan and process their business processes efficiently, digitally and securely. Of course, there are always legal questions that are usually very costly answered by a lawyer. It should be significantly cheaper with JurLine and the? Bexio University? go, whereby the platform mentioned benefits from collaborations with now more than 50 partners. Legal questions can be, for example:

    • Can an employee be dismissed because of a permanent delay?
    • How can I collect accounts receivable from a customer?
    • What do I do if the insurance does not pay?

Often enough, the efficiency of a company depends on how safely it can act from a legal point of view and which decisions are made on a legally sound basis or which cannot be challenged. More than 30,000 customers are now using bexio and can now quickly and directly receive information on important legal issues over the phone.

Full functionality of the software

Experienced lawyers answer entrepreneurs' questions and thus ensure that the business remains legally secure. Information is provided on all areas of law as long as it relates to Swiss law.

There are no restrictions on the number of inquiries: Anyone who has questions can ask them regardless of how often he or she has already called and needed help. Anyone who has booked the full functionality of the bexio software can now use the legal advice. If you have restricted packages, you can also book the legal function.

Last but not least, the new knowledge platform? Bexio University? in the process of working more efficiently. The digital platform is aimed at SMEs and fiduciaries and offers all relevant information about digitization, sales or online marketing. It will be added step by step and will therefore not remain up to date. New content means that the platform can be used as a point of contact for further training.

Internal and external experts work together here and share their know-how with inquisitive entrepreneurs. Above all, it is about giving entrepreneurs the tools they need so that their company can be successful and remain competitive. The administration of SMEs is also the focus. The software offers the possibility of individual adaptation of the platform through the above-mentioned 50 partners who make their applications available. For example, there can be interfaces to the online shop, other solutions and offers for online payment, as well as apps to automatically book expenses.

Conclusion: With bexio, entrepreneurs are well equipped

The company software from bexio offers companies a constantly expanding basis for new knowledge. It deals with all topics that affect daily corporate life, knowledge content is constantly being updated. In addition to this? Bexio University? Protekta's new JurLine is a very interesting offer for SMEs. Experienced lawyers answer the caller's questions, regardless of how often they answer. Advice is included in the comprehensive software package, otherwise this product can be booked.

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Insurers pay: Corona compensation for SMEs

Insurers pay: Corona compensation for SMEs

Some insurers are still hesitating: The damage for companies is great, but an end to the corona pandemic does not seem in sight. The Swiss insurance companies did not want to take over the damage and had to take beatings from all sides.

The insurers pay

Some insurance companies took the position that damage from the corona pandemic was not covered and that they therefore did not belong in the insurance benefits. The damage occurred mainly in two areas of insurance. On the one hand, it was the travel insurance that should be used frequently because the vacation trips were simply canceled. 

On the other hand, companies were affected and the business interruption insurance should have been paid. These are also known as epidemic insurance and this is exactly where the problem lies. Since the WHO had described Corona as a pandemic, did the insurers see themselves in the right? after all, they offer epidemic and not pandemic insurance. 

But while travel insurance usually boils down to a benefit, because some health insurances have started with compensations and others have followed suit, SMEs have so far often been left alone. Even today, they still rely on goodwill because insurers do not consider damage caused by the pandemic as an insured event.

Furniture as a big exception

So far, Mobiliar has shown itself to be exemplary and has not made any distinction between an epidemic and a pandemic in its insurance policies. It has so far acted unbureaucratically and has already paid out more than 300 million Swiss francs to the insured. This was of course very well received by all insured persons, who can use the money from the insurance to compensate for part of the damage caused by Corona.

Other insurers then saw themselves under pressure and wanted to protect their reputation. To do this, they approached the insured and offered them a compromise. Insurance companies that acted in this way were, for example, Helvetia, Axa and Zurich. Some claim that insurance companies took this route to protect their reputation on the one hand and to prevent years of legal disputes on the other.

And how does it continue?

The offers of the insurers, who wanted to provide a service similar to Mobiliar, of course met with open ears from the insured and over 90 percent of the companies that received a compromise offer made use of them. This was at least communicated in this way by the Axa, and Helvetia also said something similar. 

How the individual offers look like and what sums they contain cannot be found out, the companies are silent on this. The fact is, however, that insurers are expecting damage sums in the double or three-digit million range and that only for corona-related damage in 2020.  

How it should go on is still unclear. The insurance industry is still discussing possible solutions, but fast insurance routes are not in sight here. There is currently talk of pool solutions that already exist for the insurance of natural disasters and for the protection of nuclear risks. However, it is not clear how SMEs can really protect themselves in the future. Incidentally, this also applies to travelers, because the current travel insurance policies will also be adjusted in the future.

Conclusion: SMEs get at least a small amount of compensation

SMEs need business interruption insurance in order to be able to survive damage in the event of an accident. This was also thought of with the corona pandemic, but no one had expected the insurers' sophistication. They argued that it was a pandemic, not an epidemic, and therefore did not need to perform. 

Mobiliar was the big outsider and paid out funds to the companies without reservation. Other insurers jumped on the bandwagon in order not to lose face and to avoid legal disputes. However, they only offered compromises and not full insurance benefits. It now remains to be seen how other insurers will react.

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Home office poses new threats to SMEs

Home office poses new threats to SMEs

Traditional working models were valid until Corona came. Now other solutions are being looked for in order to work more flexibly and independently. But at the same time new dangers for companies and their employees develop.

Higher risk to devices

The home office has its advantages and offers working with more personal responsibility and significantly more flexibility. At the same time, insurance companies are critical of this trend, as they assume that the devices used in the home office are exposed to significantly greater dangers.

As early as the spring of 2020, around half of all employed people in Switzerland were working from home, some of them permanently, others were limited to hours or days a week. The reason was the adopted corona protective measures, which the companies had to bow to and which meant that new working models had to be used. Digitization and workplace models, which are now more diverse than ever before, experienced a significant boost. Quite a few employees appreciated this type of work, at the same time many companies can come to terms with it. It can therefore be expected that the home office will also be used much more heavily after Corona than before.

In surveys, around 41 percent of those questioned even stated that they were significantly more productive at home, and around 34 percent wanted to work at home even after Corona. The environment is quieter here, there are fewer distractions from colleagues and everyday life can be better integrated into professional life. According to the insurers, all this means that the devices provided by SMEs in the home office are significantly more at risk than in the regular office. This is especially true for employees who work in the home office, but use a locked office space there, but are surrounded by family and pets.

Great need for security

By switching to the home office, companies quickly had to ensure that technical gaps were closed and that standard digital tools were used. In addition, employees had to be given access to the company's devices and technologies from home, which meant an additional intrusion into corporate security. Private devices were connected and used, which served neither the current security regulations nor the effectiveness. Not everything was and is compatible, so that many employees in the home office face new challenges every day.

The need for security has grown significantly in companies, especially since more and more phishing attacks were detected on the companies during the first lockdown. Fraudsters tried directly to take advantage of the circumstances and gain access to the computers via fake emails. However, it is not the devices that are the biggest problem, but rather the people, because they are still too lax about safety regulations.

If you don't handle your mail carefully, you can open the door to the company for fraudsters. Many companies now have security checklists for their employees so that they can orientate themselves on them when it comes to IT security. Very important: Family members should not have access to the computer that belongs to the company and on which the employee works. With every additional person as a user, the security risk would increase.

Conclusion: Home office is practical, but risky

Both companies and employees benefit from the home office and its possibilities for concentrated, quiet work. Nevertheless, the security risk is significantly greater here, especially since many users at home are less strict with the company's security guidelines.

Potential attackers can gain access to the network more easily because the devices at home have to connect to the devices in the company, insecure passwords are used or the e-mails of the supposed colleagues (in truth the fraudsters) are not handled carefully enough becomes. The shared use for private and professional purposes also makes the computer more vulnerable to attack. For these reasons, IT insurance coverage must be clarified separately for devices that are used in the home office.

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New Swiss data protection law brings changes for SMEs

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New Swiss data protection law brings changes for SMEs

The Swiss data protection law has been modernized and contains important changes for SMEs. The implementation of the new regulations is only planned for the end of 2021. Nevertheless, the companies concerned should inform themselves now about necessary adjustments.

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The end of the debates

Parliament has been debating for more than three years what the new Swiss data protection law could look like. The original data protection decree had been in force since 1992 and was no longer able to keep up with the technological and social changes in the country. It has been adapted to the new conditions, whereby a reference to the regulations in all of Europe can be seen. Above all, the General Data Protection Regulation of the European Union formed the basis for the debates and for the conclusions drawn from them. The GDPR has been in force since 2018.

The modernization of the data protection regulation in Switzerland had become necessary because the exchange of information with international partners should continue to be possible without restrictions and no Swiss company should experience any disadvantages as a result. With the GDPR, the EU created a standard that is now also binding for Swiss companies. 

The background to the necessary revision of the regulation was also that it cannot always be very clear whether a company from Switzerland should be included in the scope of the European Union. Now two standards had developed: on the one hand the GDPR and on the other hand the Swiss data protection regulation. Legal uncertainties and additional administrative work were the result. At the same time, however, an equivalence of data protection was called for, so that Switzerland and the EU are converging on this level.

Problems and innovations with the data protection regulation

The complete revision of the Data Protection Act turned out to be problematic and it was important to all those involved that primarily intelligent and not just different solutions were found. The special features of the Swiss economy and the companies here had to be taken into account. This should prevent the economy from being burdened more than necessary in the future and at the same time ensure that the Swiss system is on a par with that of the EU.

What is new, for example, is that the scope of the Data Protection Act now relates to the data of people, i.e. natural persons. Before it was only about legal entities. In addition, the new ordinance contains a list of particularly sensitive data as well as possible legal consequences when storing and processing this data. The regulations apply here, for example: 

    • Consent to data storage
    • Data protection impact assessment
    • Passing on the data to third parties
    • Credit checks

Data that uniquely identify a person are now considered particularly worthy of protection. There is also a new regulation on profiling, which always applies when a person's data is processed automatically and an assessment of the person concerned and his or her personality is or can be made on the basis of the data. In the case of high-risk profiling, an express declaration of consent must be available from the person concerned. For example, there is a high risk when it comes to checking a person's creditworthiness.

The new data protection regulation requires SMEs to keep a record of data processing. Exceptions apply to companies that employ up to 250 people and that only show a low risk of personal injury when processing the data.
? Privacy by Design? and? Privacy by Default? are established by law. 

In the first case, this means that the data protection regulations must be complied with during data processing from the planning stage. The second variant means that the app and website defaults must be such that personal data is only processed to the minimum.

According to the new regulation, everyone has the right to data portability and so people can request the transfer of their own data to other companies. This service should be possible free of charge.

Conclusion: The new data protection law protects natural persons

It was once legal entities that were particularly protected by the data protection act in Switzerland. Due to the need to adapt own regulations to the requirements of the European Union, it is now the natural persons who have to be protected by SMEs. 

Comprehensive protection of people and their data is primarily intended for high-risk data processing. Such is the case with the application for credit and the associated credit check. At the same time, people have the right to request that their data be passed on to other companies. The new regulations will probably not come into force until the end of 2021.

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