Starting a Small Business in Tennessee

Welcome to the Small Business Startup Tennessee Franchise Directory! Here, you'll find everything you need to begin your journey to business ownership in The Volunteer State. If you're considering starting a small business in Tennessee, read on for an overview of the state economy. Afterward, explore business opportunities and franchises for sale with our Tennessee Franchise Search Tool.

Tennessee Industry Trends

If an industry is performing well, business opportunities within it are often worth exploring. Begin your market research with this list of the Tennessee economy's most prominent industries in 2022. Afterward, take your research one step further by investigating niche markets and B2B opportunities within one of these top revenue-generating industries.

1. Hospitals (Revenue: $27.9 billion)
2. Health & Medical Insurance (Revenue: $25.6 billion)
3. Property, Casualty & Direct Insurance (Revenue: $22.8 billion)
4. New Car Dealers (Revenue: $22.8 billion)
5. Gasoline & Petroleum Bulk Stations (Revenue: $18.0 billion)
6. Public Schools (Revenue: $16.6 billion)
7. Commercial Banking (Revenue: $14.7 billion)
8. E-commerce & Online Auctions (Revenue: $14.5 billion)
9. Long-Distance Freight Trucking (Revenue: $13.8 billion)
10. Warehouse Clubs & Supercenters (Revenue: $13.6 billion)

Tennessee Sector Statistics

When starting a small business in Tennessee, gross domestic product (GDP) is another tool entrepreneurs can use to make investment decisions. Generally, a steadily rising GDP means people are spending more money and creating more jobs.

The three sectors that contributed most to Tennessee's GDP in 2022 were Manufacturing; Real Estate, Rentals, & Leasing; and Healthcare & Social Assistance. Combined, these three sectors represented 39.4% of the state's GDP. In 2022, the sectors that contributed most to Tennessee's GDP included:

1. Manufacturing (Value: $57 billion* | Annual growth: 4.6%)
2. Real Estate, Rentals & Leasing (Value: $38.7 billion* | Annual growth: 1.6%)
3. Healthcare & Social Assistance (Value: $33.9 billion* | Annual growth: 3.1%)
4. Retail Trade (Value: $24.9 billion* | Annual growth: 2.5%)
5. Professional, Scientific & Technical Services (Value: $24.6 billion* | Annual growth: 7.3%)
6. Wholesale Trade (Value: $23.3 billion* | Annual growth: 2.0%)
7. Finance & Insurance (Value: $23.1 billion* | Annual growth: 10.6%)
8. Transportation & Warehousing (Value: $15.9 billion* | Annual growth: 4.9%)
9. Administration, Business Support & Waste Management Services (Value: $7.4 billion* | Annual growth: 9.7%)
10. Information (Value: $15.3billion* | Annual growth: 9.1%)
11. Accommodation & Food Services (Value: $11.3 billion* | Annual growth: 5.7%)
12. Construction (Value: $10.6 billion* | Annual growth: 2.8%)
13. Management of Companies & Enterprises (Value: $10.1 billion* | Annual growth: 11.1%)
14. Other Services (Except Public Administration) (Value: $7.2 billion* | Annual growth: 0.1%)
15. Arts, Entertainment & Recreation (Value: $4.2 billion* | Annual growth: -0.2%)

*Approximately

Tennessee Population Statistics

A growing population often means greater demand and a steady flow of new customers. If you are undecided about the location of your new business, start by investigating population statistics. Afterward, take your research a step further by exploring population demographics. By doing so, you can decide whether a location is a good match for your target market.

In 2022, counties with the highest populations in Tennessee included:

1. Shelby (Population: 935,000 | Annual growth rate*: -0.1%)
2. Davidson (Population: 697,900 | Annual growth rate*: 0.3%)
3. Knox (Population: 485,300 | Annual growth rate*: 1.0%)
4. Hamilton (Population: 378,800 | Annual growth rate*: 1.0%)
5. Rutherford (Population: 354,900 | Annual growth rate*: 2.3%)
6. Williamson (Population: 259,100 | Annual growth rate*: 2.8%)
7. Montgomery (Population: 223,400 | Annual growth rate*: 2.1%)
8. Sumner (Population: 203,700 | Annual growth rate*: 2.1%)
9. Sullivan (Population: 159,600 | Annual growth rate*: 0.3%)
10. Wilson (Population: 155,900 | Annual growth rate*: 2.6%)
11. Blount (Population: 137,800 | Annual growth rate*: 1.1%)
12. Washington (Population: 131,800 | Annual growth rate*: 0.6%)
13. Bradley (Population: 111,100 | Annual growth rate*: 0.9%)
14. Maury (Population: 104,900 | Annual growth rate*: 2.6%)
15. Sevier (Population: 100,600 | Annual growth rate*: 0.7%)
16. Madison (Population: 98,900 | Annual growth rate*: 0.3%)
17. Putnam (Population: 83,200 | Annual growth rate*: 1.4%)
18. Anderson (Population: 78,600 | Annual growth rate*: 0.7%)
19. Robertson (Population: 73,500 | Annual growth rate*: 0.9%)
20. Greene (Population: 70,100 | Annual growth rate*: 0.4%)

*From 2017 to 2022.

Tennessee Business Opportunities

We hope this snapshot of the Tennessee economy helps as you investigate business opportunities in The Volunteer State! Starting a small business in Tennessee is an exciting journey; we know you're probably eager to start. But remember, take your time to explore all your options. While you'll always have the "opportunity" to start your own business, sometimes, investing in an opportunity that already exists makes more sense. These are called "Franchise Opportunities," and they offer several benefits, including the recognition of a well-established brand and a proven track record of success.

To learn more, start by exploring franchise opportunities in Tennessee below!