Start-ups play a key role in OECD countries in terms of job creation, innovation, and long-run growth, but the COVID-19 crisis is reducing their creation, challenging their survival, and limiting their growth.
Policy interventions should tackle short-term challenges, supporting short-term liquidity and availability of funding, and foster the ability of start-ups to grasp new business opportunities that may arise during and after the pandemics.
In the longer-term, policies that reduce barriers to entrepreneurship, provide incentives for start-ups, and boost entrepreneurial potential could help limit the detrimental employment and innovation effects of a missing generation of new firms and help speed up the recovery.
