NASHVILLE, Tenn. (WOKI)– Tennessee recorded its strongest first quarter ever for new business creation in 2026, while population growth remained among the strongest in the nation, according to a new report released by Secretary of State Tre Hargett’s office.
The latest Quarterly Business and Economic Indicators Report found that 24,852 new business entities were filed during the first quarter of 2026, marking the highest first-quarter total in the 33-year history of the data and a 20.6% increase compared to the same period last year.
The report also showed a record number of annual reports filed by Tennessee businesses. During the quarter, 241,706 annual reports were submitted, a 30.4% increase year-over-year.
Secretary of State Tre Hargett credited Tennessee’s business-friendly climate for the continued growth.
“Our state leaders work diligently to offer a welcoming business environment that supports jobs and opportunities,” Hargett said. “Tennessee’s recipe of lower taxes, light regulations, and responsible fiscal management is why people from across the country continue to move here.”
Over the past 12 months, Tennessee recorded 84,893 new entity filings and 373,992 annual reports, reflecting continued economic activity and entrepreneurial growth throughout the state.
Knox County ranked among Tennessee’s leaders in business formation, joining Davidson, Shelby and Hamilton counties as the top counties for new business filings. Those four counties accounted for more than 42% of all new filings statewide.
The report found that Tennessee’s remaining 91 counties collectively grew even faster than the state’s largest counties, posting a 21% increase in new filings.
In addition to business growth, Tennessee’s population continued to expand in 2025. The state’s population increased by nearly 64,000 residents, reaching approximately 7.32 million people.
Researchers found that most of the growth came from net domestic migration, meaning more people moved into Tennessee from other states than left. International migration and natural population growth also contributed to the increase.
Tennessee ranked fourth nationally in net domestic migration during 2025 and fifth when measured as a percentage of population.
According to the report, 81 of Tennessee’s 95 counties gained population, with Davidson County recording the largest increase.
Dr. Don Bruce, director of the University of Tennessee’s Boyd Center for Business and Economic Research, said the numbers reflect Tennessee’s continued attractiveness for entrepreneurs and employers.
“The entrepreneurial spirit in Tennessee really shines through in this record-breaking level of both new entity and annual report filings,” Bruce said. “It shows that our state continues to be a hot spot for new businesses, which, in turn, creates more jobs and a stronger tax base.”
The report was produced through a partnership between the Tennessee Secretary of State’s Office and the University of Tennessee Knoxville’s Boyd Center for Business and Economic Research.
