Shelby County led the charge of a record-breaking surge of people starting new businesses in Tennessee, according to new data from the Tennessee Secretary of State.
New business filings in the first quarter of 2021 were “the highest in history,” said Dr. Bill Fox, director of the Boyd Center for Business and Economic Research. In the first three months of the year, new business filings were up 55.1 percent over the same period in 2020.
In the first quarter 19,652 entities filed papers to start new businesses, according to state data. It marks the largest year-over-year gain in the 28-year history of the collection of this data. State officials called it “astonishing” in a news release.
“This data is an encouraging sign and a strong vote of confidence by Tennesseans and people worldwide investing in our state’s business and entrepreneur-friendly environment,” said Secretary Tre Hargett.
The first quarter marked the third straight quarter of new business filings in the state. Officials said a strong annual gain in new business filings in any quarter is 15 percent. In the last three quarters, new businesses filing have been up 30 percent. “The record-breaking boom over the last three quarters has roughly doubled or tripled top quarters from the past,” officials said.
The growth in new online businesses during the pandemic across the country “likely” explains Tennessee’s new business surge, officials said.
Shelby County saw the largest number of new filings, followed by Davidson, Knox, and Hamilton counties. These four — the most populous counties in the state — accounted for 47.9 percent of new filings statewide.
“COVID-19 has complicated how we compare economic activity over the past year, but initial filings for new businesses during the first quarter of 2021 were the highest in history,” said Fox. “This strong rate of growth signals that Tennessee is experiencing a rapid economic rebound from the pandemic.”
