The effects of the COVID-19 pandemic are being closely monitored, and what happens to employer businesses during and after this downturn is an important part of the recovery. Research shows that employer startups have accounted for substantial net new job creation (Haltiwanger et al, 2013). There have also been notable declines in the share of new businesses that become employers within eight quarters (Desai et al, 2020), average job creation by startups in their first year (Fairlie and Desai, 2020), and the relative job creation contribution of young businesses (Decker et al, 2014). It is difficult to predict the magnitude of the impact and likely recovery trajectories among entrepreneurs and potential entrepreneurs, as well as their businesses across different sectors, industries, and regional economies.
