Tennessee marks 10 years of new business growth
Published 6:00 am Friday, February 18, 2022
Tennesseans achieved a remarkable milestone in the fourth quarter of 2021, 10 years of uninterrupted year-over-year growth in quarterly new business filings.
The Tennessee Quarterly Business and Economic Indicators report issued by Secretary of State Tre Hargett’s office shows that 75,300 businesses filed over the past year and 17,117 entities filed in the fourth quarter of 2021. New business filings in the fourth quarter of 2021 grew 22.2% from the fourth quarter filings in 2020, marking six consecutive quarters of double-digit growth.
“To grow new businesses for 40 consecutive quarters is no small feat. It is a testament to Tennessee entrepreneurs and to our state leaders who have created a business-friendly environment that encourages investment and jobs,” said Secretary of State Tre Hargett. “Tennessee has become a magnet for people nationwide and I am encouraged about the future of our great state.”
Growth in business filings typically leads to growth in jobs, personal income and state revenue. The largest number of filings were in Davidson County, followed by Shelby, Knox and Hamilton counties. These four most-populous counties accounted for 44.5% of new filings state-wide.
It is also noteworthy that year-over-year growth in new filings among Tennessee’s other 91 counties advanced by a robust 72.7%, an optimistic sign for statewide shared success.
Tennessee’s December unemployment rate of 3.8% declined from the prior month, the prior year, and from its pandemic high of 15.8%. It remains just below the national rate of 3.9%. Employment in Tennessee grew by 14,500 jobs in December from the prior month, and total non-farm employment is nearing pre-pandemic peak levels.
“We have seen the unemployment rate continue to drop as employment growth remains really solid in most sectors of the state’s economy,” said Dr. Bill Fox, director of the Boyd Center for Business and Economic Research. “Job growth is likely to maintain this upward trajectory, and that’s very good news for Tennesseans looking to re-enter or move within the workforce as the shock from the pandemic fades away.”
This report provides a snapshot of the state’s economy based on key indicators, including new business data from the Secretary of State’s Division of Business and Charitable Organizations. It is published through a partnership with the University of Tennessee Knoxville’s Boyd Center for Business and Economic Research and the Secretary of State.
To review the complete Q4 2021 Tennessee Quarterly Business and Economic Indicators report, past reports and a teleconference recording about the report with Secretary Hargett and Dr. Fox visit, sos.tn.gov.