Hmmm... That's what I was thinking, but mine still starts with the clutch out (electric start). I think the two wires on the loose end are touching, allowing it to start anyway. I'll have to check it out. Thanks!
The issue is your bike will not (or should not) start while IN GEAR unless the clutch is disengaged. This is to prevent you from pushing the start button while in 1st gear, launching your bike into a crowd of pre-schoolers, nuns, baby seals, whales, the ozone layer or who/whatever we're saving today
It is a ROYAL PITA (pain in the backside) when your bike isn't running exactly perfectly, and tends to stall when warm at idle. Without a functioning (key word - these switches do fail) switch, you can't push the start button while rolling in gear with the clutch pulled in. You have to put the bike into neutral before starting.
Anyhow - check your wiring diagram, and hook the switch up. Test it first though to make sure it functions. If it doesn't, replace it - they're cheap ($10 or so new from Honda - I just picked mine up 2 hours ago
)