Hargett: State sets new records for business formation and renewals in 1Q

(TN Secretary of State press release) Tennessee set new records in the first quarter of 2023 for business formations and renewals in the state, according to the recent Quarterly Business and Economic Indicators report issued by the Secretary of State’s Office.

In the first quarter of 2023, 21,516 new entities filed, and 199,309 firms renewed their active status by filing annual reports, representing the highest totals for any quarter in the 25-year history of the data.

“Our state leaders are committed to serving Tennesseans by preserving an environment where businesses launch, locate and thrive,” said Secretary Hargett. “The record number of new business formations and renewals is a testament to smart fiscal management and a commitment to a skilled workforce.” 

Typically, a high level of business filings leads to growth in jobs, personal income, and state revenue. Over the last twelve months, 76,767 entities filed and 337,760 filed annual reports.

The largest number of filings in the first quarter of 2023 were in Davidson County, followed by Shelby, Knox, and Hamilton counties. Knox County saw the highest percentage increase in filings year-over-year, growing by 18.4%. Filings in these four most-populous counties together increased by 0.8% compared to Q1 2022.

Tennessee’s unemployment in March dropped to 3.4%, just below the national rate of 3.5%. Tennessee jobs grew by 1,700 in March and by 96,900 over the last twelve months.

“Tennessee’s economy continues to outpace the nation’s and shows no signs of slowing down,” said Don Bruce, director of the Boyd Center for Business and Economic Research. “These record-high new business filings in the state, along with strong personal income and stable unemployment rates, are yet another sign of continued economic growth in the coming months.”

The Quarterly Business and Economic Indicators 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 Q1 2023 Tennessee Quarterly Business and Economic Indicators report and past reports, visit sos.tn.gov.