Report: New business filings reach all-time high in Tennessee

Local News

NASHVILLE, Tenn. (WKRN) – Major milestones are being met in Music City, from the topping out of the Four Seasons Hotel and Private Residences Nashville at 40 stories, to more progress at Nashville Yards.

Meanwhile, Tennessee’s Quarterly Business and Economic Indicators Report shows new business filings in our state are expanding at record rates, a sure sign for good things to come.

Compared to the same quarter last year, new entity filings (19,652) grew by an astounding 55.1 percent, as more new business filings were registered this quarter than ever before.

“It’s the most initial filings; that’s the most new firms in the history of Tennessee. It really is a stunning number,” said Dr. William Fox, Director of the University of Tennessee Knoxville’s Boyd Center for Business & Economic Research. “While COVID did affect the first half of the year, we continued to have positive growth rates even during COVID.”

There were 9,413 new entities registered among the four largest Tennessee counties – Davidson, Shelby, Knox and Hamilton, representing a 36.3 percent increase over the same quarter last
year.

The latest economic report shows positive economic growth for Tennessee, Dr. Fox said, adding our GDP should reach pandemic levels this quarter.

“What were seeing is growth that spreads broadly across Tennessee, mostly outside the most urban parts of the state,” Dr. Fox said. “What this says is there’s a lot of confidence in Tennessee across the entire state.”

Despite the positive news, Tennessee employment numbers are lagging behind pre-pandemic levels.

According to the report, our state lost nearly 400,000 jobs in the spring of 2020 due to the pandemic. Since then, the Tennessee economy has added 287.4 thousand jobs back to payrolls. As a result there are still 92.4 thousand fewer workers on payrolls today than there were during the pre-pandemic peak.

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