More Business Filings Could Mean More Jobs In Tennessee

This is the tenth consecutive quarter of growth for business filings in Tennessee.  Credit: David Lofink via Flickr

Around 29,000 new businesses have registered in Tennessee over the last year.  A new quarterly analysis from the Secretary of State regarding openings and closures finds that new businesses could affect other aspects of the state’s economy.

University of Tennessee economist Bill Fox, who helped write the report, says that the rise in business filings is significant.

“This most recent quarter is the tenth consecutive quarter of growth in the number of new entities,” he says. “You have to go back to the middle of the 2000’s to see a window that long.”

The report also shows that there has been a large rise in foreign-owned entities – up 17 percent from last year. The construction industry also experienced a jump in businesses incorporating in the state.

More business filings can equal more jobs, and Tennessee’s unemployment rate recently dipped below 7% for the first time since 2008.  The rise in both the state’s employment rate and business filings suggests a correlation.