..because you'd have to pay 3x to get swiss to work for you, while italians might jump the border for a lot less than what they'd deserve.

Don't forget you need to pay 4x (or more) for rent of any office space (or housing space) in Switzerland compared to the other side of the border.

This explains why lots of businesses that migrated from italy to switzerland in search of an "el dorado" closed shop after a short timespan, realizing business is hard everywhere.

Driving through it or being there for a holiday is not a problem as they are a member of Schengen but to obtain a Work Visa for Switzerland is another step of paperwork. People holding EU Passports still need to apply for a Work Visa.

Because "If you want to tap into the pool of talented italian " you will get them at a better price at the italian border than somewhere else in Switzerland. Most Italians do not want to leave Italy.