If you look at the metal spring running from top to bottom
when the lever in is neutral the gears push against this spring (part in picture that looks like an house with a rounded roof pointing from right to left) which in turn pushes in a button on the microswitch, this "makes" the circuit and allows the engine to start.
when its not in neutral the microswitch button is out and the circuit is broken so it wont start.
If the microswitch is broken then it thinks its in gear
the switches are really cheap to replace.
I broke one on my Suzuki and picked up one locally from maplin.
heres the correct microswitch
V-15-1A5 BY OMI OMRON ELECTRONIC COMPONENTS, MICROSWITCH, PIN PLUNGER, SPDT 15A 250V | Farnell element14
If you have a Maplins local to you this will work fine
Low Cost Standard Microswitch | Maplin
Simon