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Observations indicate that the universe is effectively flat, but they do not rule out a closed universe. The role of positive curvature is negligible at late times, but can be crucial in the early universe. In particular, positive curvature allows for cosmologies that originate as Einstein static universes, and then inflate and later reheat to a hot big bang era. These cosmologies have no singularity, no "beginning of time", and no horizon problem. If the initial radius is chosen to be above the Planck scale, then they also have no quantum gravity era, and are described by classical general relativity throughout their history.
Ellis et al. (Tue,) studied this question.
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