Sunday's vote in Switzerland on imposing stricter immigration controls has raised fears that the measure is the latest in a long list of reforms that could curb the country's business-friendly environment.
Swiss voters opted to back proposals to reintroduce immigration quotas with the European Union, with the outcome obliging the government to turn the initiative, spearheaded by the right-wing Swiss People's Party (SVP), into law within three years.
Dominik Hangartner, an associate professor at the London School of Economics told CNBC Monday that the vote wasn't good news for the Swiss economy.
"For businesses -- and I'm especially worried about small and medium-sized enterprises (SMEs) -- it's probably not good news," he said.
(Read More: Swiss vote to set limits on immigration from EU)
In the period before June 2002, when Switzerland had similar quotas, Hangartner said, big corporations usually got the permits they needed to recruit staff internationally. However, the SMEs struggled to gain those permits and, he warns, it looks as though that pattern could be repeated – hitting the companies' skill base and productivity.
Viviane Reding, the vice-president of the European Commission, told the Financial Times on Sunday that there could be uncertainty following the Swiss vote and it could hamper investment flows between the European Union and its neighbor.
"Business people will make their cost-benefit analysis and decide where to establish their companies," she said the newspaper.