Tennessee experienced the highest number of business filings for a second quarter in the 25-year history of data, according to the new Quarterly Business and Economic Indicators report issued by Secretary of State Tre Hargett’s office.
“Our state’s vibrant economy continues to set new records, creating more opportunities for Tennesseans,” said Secretary Hargett. “The leaders of our state are committed to responsible fiscal management, lower taxes and a welcoming environment for businesses to start and thrive.”
In the second quarter of 2023, 19,996 new entities filed in Tennessee. The 1.4% year-over-year growth in new business filings shows that businesses continue to establish in Tennessee at high rates, building on the elevated rates of filings that began in 2020.
Over the past year, 77,044 new businesses filed, and employment rose by 84,600 jobs. State unemployment in June matched its all-time low at 3.2%, below the national rate of 3.6%.
A high level of business filings typically leads to jobs, personal income and state revenue growth. All are growing in Tennessee. The largest number of filings in the second quarter were in Davidson and Shelby counties, followed by Knox and Hamilton counties.
Tennessee’s four most-populous counties accounted for 44.5% of new filings state-wide and grew 1.1% over the past year. Knox County business filings expanded rapidly, growing by a robust 58.4% year-over-year for the second quarter. Knox County has grown the fastest among the four largest counties in each of the last six quarters. Tennessee’s other 91 counties grew year-over-year by 1.7%.
“Tennessee’s economy continues to lead the nation, especially when it comes to the job market,” said Dr. Don Bruce, director of the Boyd Center for Business and Economic Research. “Strong job growth alongside record-low unemployment has contributed to much faster income growth in Tennessee than we are seeing in the national data.”
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 Q2 2023 Tennessee Quarterly Business and Economic Indicators report and past reports, visit sos.tn.gov.