ISSUES AND CHALLENGES IN SERVICE SECTOR: STUDY OF START-UP DURING COVID-19

Start-ups play a key role in economies, but the COVID-19 crisis is reducing their creation, challenging their survival,
and limiting their growth. Business registrations have been dropping significantly in recent months and a missing
generation of new firms has significant implications for economic outcomes, notably employment. This point argues
that these can be mitigated by taking steps to support existing start-ups and the creation of new firms. Policymakers
should tackle short-term challenges, supporting short-term liquidity and availability of funding, but also and
importantly foster the ability of start-ups to grasp new business opportunities. Policies that reduce barriers to
entrepreneurship provide incentives for start-ups, and boost entrepreneurial potential could help speed up the recovery
and preserve aggregate employment in the long term.