Coherent Identifier About this item: 20.500.12592/j1s714

Characteristics of Businesses That Closed During the Covid-19 Pandemic in 2020

24 March 2021



This article compares the characteristics of employer businesses that were closed by September 2020 and remained closed as of November 2020 with those of employer businesses that were active before the onset of the COVID-19 pandemic in February 2020. Characteristics related to the risk of closure are examined, such as business size, age, indebtedness, liquidity and profitability. Based on these characteristics, the risk of closure is estimated for each business. It is found that recently closed businesses are more likely to have a lower estimated risk of closure than those that closed earlier in the pandemic. This suggests that even larger businesses with stronger financial characteristics (based on pre-pandemic financial statements) could be at risk of closing as the pandemic continues.