As part of Global Entrepreneurship Week, the Organisation for Economic Co-operation and Development (OECD) unveiled the first indications of how the economic slump has impacted entrepreneurship in the United States and 11 other countries in 2008 and most of 2009. The report, Timely Entrepreneurship Indicators, shows that firm formation declined and exits increased, which economists say could have significant implications for job creation.

“Our research shows that new and young firms have been the primary source of new jobs in the United States over the past three decades,” said Robert Litan, vice president of research and policy at the Ewing Marion Kauffman Foundation, which funded the study.

“While business exits are a normal part of a healthy entrepreneurial ecosystem, this study shows a concurrent increase in exits and decrease in formation throughout OECD countries as a whole. This should send a giant red flag to policymakers around the globe to pull out all the stops to encourage and support business startups so we can create new jobs and sustain a worldwide economic recovery.”

The researchers, however, warned that the data for the first half of 2009 should be interpreted with care, however, given the reported signs of economic recovery in recent months in some countries.