Russ Cook & Associates, PC

What is the business climate like in the Volunteer State?

Many entrepreneurs in the Volunteer State are eager to start their own small business. However, there are many factors that go into starting a new business, including the business climate in the state. With respect to doing business in Tennessee, while job growth is on the upswing, the state could do more to see that entrepreneurs have access to the business assets they need to make their dream a reality.

According to one source, Tennessee saw the most small business job growth in the United States in June, with a 1.31 percent increase since 2016. This is significant, since across the United States, small business hiring is going down, having dropped for the fourth month in a row and reaching levels that haven't been seen since 2011. However, wage gains have been increasing. They are 2.88 percent higher than they were in 2016. Moreover, the jobless rate in Tennessee is on the downswing. In April, it sat at 4.7 percent, but, in May, that number went down to 4 percent. Across the United States, the unemployment rate is 4.3 percent. Finally, another source has ranked Tennessee 14th out of all states in the nation in 2016 when it comes to entrepreneurship growth. In 2015, that number sat at 18th.

However, one study has stated that Tennessee ranks as the 27th best state to start a business. On one hand, it has the fourth lowest cost of doing business in the United States. On the other hand, however, the state was below average in access to capital and labor. It was also below average in its startup rate. In fact, the study said the state was in the bottom 10 states when it came to the number of workers with college degrees and access to venture capital.

As this shows, while Tennessee is a great place to start a new business, there is still work to be done. In the end, all entrepreneurs looking to start a business in Tennessee need to make sure they have taken every necessary step to ensure their business meets all the legal requirements necessary to start off on the right foot. A business law attorney can educate clients on the laws involved in starting up a business.

Source: Times Free Press, "Tennessee leads nation in small business hiring," Dave Flessner, July 5, 2017

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