Entrepreneurship During the COVID-19 Pandemic: Evidence from the Business Formation Statistics

John Haltiwanger

No 28912, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Applications for new businesses from the U.S. Census Bureau’s monthly and weekly Business Formation Statistics (BFS) fell substantially in the early stages of the pandemic but then surged in the second half of 2020. This surge has continued through May 2021. The pace of applications since mid-2020 is the highest on record (earliest data available is 2004). The large increase in applications is for both likely new employers and nonemployers. These patterns contrast sharply with those in the Great Recession when applications for likely new employer businesses and in turn actual startups of employer businesses declined sharply and persistently. The surge in new business applications has been uneven across sectors. Ten 3-digit NAICS industries account for 75% of the surge. Dominant industries include Nonstore Retail (alone accounting for 33% of the surge), Professional, Scientific and Technical Services, Truck Transportation, and Accommodation and Food Services. Given that existing small businesses in Retail Trade and Accommodation and Food Services have suffered especially large declines in the pandemic, these patterns are consistent with restructuring induced by the pandemic.

JEL-codes: E32 L25 L26 (search for similar items in EconPapers)
Date: 2021-06
New Economics Papers: this item is included in nep-ent, nep-ino, nep-mac and nep-sbm
Note: EFG PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published as Entrepreneurship during the COVID-19 Pandemic: Evidence from the Business Formation Statistics , John C. Haltiwanger. in Entrepreneurship and Innovation Policy and the Economy, volume 1 , Lerner and Stern. 2022

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Related works:
Journal Article: Entrepreneurship during the COVID-19 Pandemic: Evidence from the Business Formation Statistics (2022)
Chapter: Entrepreneurship during the COVID-19 Pandemic: Evidence from the Business Formation Statistics (2021)
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