NASHVILLE, Tenn. (WGNS) - New business creation across Tennessee reached near-historic levels in the second quarter as state officials report the second-highest number of new entity filings in 33 years.
According to the new Quarterly Business and Economic Indicators report released by the office of Tennessee Secretary of State Tre Hargett, business owners filed 24,733 new entities during the second quarter. That marks a 23.1% increase compared to the same time last year, trailing only the first quarter of the year for the highest single quarter on record. Over the past 12 months, Tennesseans created 89,532 new businesses.
"Business creation remains incredibly strong in Tennessee's welcoming economic environment," said Secretary of State Tre Hargett. "Although every state has challenges to tackle, state leaders give Tennesseans an edge through lower taxes, light regulations, and responsible fiscal management that supports opportunity and investment."
State economists point out that high volumes of business filings typically lead to future job creation, higher personal income, and growing state revenue.
"The latest surge in new entity filings shows that Tennessee continues to be a fertile economic environment for new businesses," said Dr. Don Bruce, Director of the Boyd Center for Business and Economic Research. "The addition of nearly 90,000 new businesses to the state economy over the past 12 months bodes well for employment, income, and tax revenue growth over the next several months."
Davidson and Knox counties recorded the largest volume of second-quarter filings, followed by Shelby and Hamilton counties. Together, those four urban counties accounted for 43.7% of all new filings statewide, jumping 24.4% year-over-year. The remaining 91 counties across the state, including Rutherford County, sustained a 21% growth rate.
In addition to business creation, the report examined housing costs across the state. Home prices spiked rapidly coming out of the pandemic, but data shows prices stabilized beginning in 2024, though overall costs remain elevated. The report cites shifting demand, population changes, interest rates, and housing supply as key factors. Multi-family housing construction helped relieve price pressures, supported by building permits that nearly doubled in Tennessee between 2019 and 2021 before staying elevated through 2024.
The economic report relies on business data from the Secretary of State Division of Business and Charitable Organizations. The publication is produced through a partnership between the Secretary of State's office and the Boyd Center for Business and Economic Research at the University of Tennessee Knoxville.
Residents can review the complete report and past quarterly economic updates online at https://sos.tn.gov.
