Pandemic triggers surge in market exits, impacting young firms and productivity.
The pandemic caused a big economic crisis, affecting different types of businesses. Fewer new companies started during the toughest restrictions in April-May 2020. Even though some businesses recovered, many closed down in July and October 2020. Young companies suffered the most, while more productive firms were less likely to shut down. To fix the crisis, we need to help new companies start and support efficient ones, especially young ones with growth potential. This will help create more productive businesses and make sure the crisis doesn't undo any positive effects.