Tennessee Shatters Business Filing Record in First Quarter of 2026

Tennessee's economy opened 2026 with its strongest quarter for new business creation in more than three decades. According to the Secretary of State's office, 24,852 new business entities filed across the state in the first three months of the year — a jump of over 20% compared to the same period last year, and the highest first-quarter total since the state began tracking the data 33 years ago.

The surge wasn't confined to the state's biggest cities. While Davidson and Knox counties led in raw filing numbers, followed by Shelby and Hamilton, it was Tennessee's other 91 counties that posted the fastest growth, expanding even quicker than the four most populous regions. The report, compiled jointly by the Secretary of State and the University of Tennessee's Boyd Center for Business and Economic Research, also noted a record number of annual reports filed by existing businesses, signaling broad resilience across the state's business community.

The momentum lines up with Tennessee's newly cemented spot as the No. 9 state for business nationally, according to CNBC's 2026 rankings — a showing that keeps the state firmly in the top tier for cost competitiveness and workforce access.

Not every signal points to smooth sailing ahead, though. The Boyd Center's 2026 economic outlook, released earlier this year, projects real GDP growth of about 2% for the state, a modest improvement over 2025 but still well below the pace seen in 2023 and 2024. Job growth has cooled noticeably too: Tennessee is expected to add roughly 31,400 jobs this year, up slightly from 2025 but far under the state's typical annual average of 60,000. Researchers pointed to shifting federal trade policy and softening consumer sentiment nationwide as key risks to watch, even as in-state consumer spending has stayed relatively firm.

To help business leaders navigate the mixed picture, the Tennessee Chamber of Commerce & Industry recently rolled out its first-ever Business Redbook, a data-driven resource meant to give policymakers and executives a clearer read on where the state's economy is headed next.

For now, the record filing numbers suggest entrepreneurs across Tennessee remain undeterred — even as economists urge a close eye on the months ahead.