Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331629 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 12163
Publisher: 
Munich Society for the Promotion of Economic Research - CESifo GmbH, Munich
Abstract: 
The COVID-19 pandemic delivered an unprecedented shock to business entry, with sharply contrasting effects on different types of startups. Using newly constructed administrative data from the Comprehensive Startup Panel covering the universe of U.S. startups, we provide the first official numbers of the pandemic's impact on employer and nonemployer startup dynamics. Nonemployer startup formation declined substantially in 2020, while employer startups unexpectedly increased. Survival outcomes also diverged: nonemployer startup survival dropped markedly, whereas employer startup survival remained largely stable. These findings reveal a pronounced compositional shift and underscore the importance of designing policies tailored to nonemployer startups in economic crises.
Subjects: 
entrepreneurship
startups
employers
nonemployers
COVID-19
pandemic
survival
resilience
JEL: 
L26
E32
M13
Document Type: 
Working Paper
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