Disruptions to Starting a Business during COVID-19

Li, Huiyu; Ochse, Mitchell

Journal Article

Disruptions to Starting a Business during COVID-19

Abstract: Applications to start new businesses tanked from mid-March through May, contracting more severely than during the 2008–2009 financial crisis. Since then, however, applications have recovered so strongly that the total number filed in 2020 should be similar to that for 2019, even if applications growth reverts to the average lows experienced during the early days of the pandemic. This should result in only a modest loss of new businesses and is not likely to cause much additional strain on overall jobs and productivity gains.

Keywords: covid-19; business cycles;