Why Do Business in Tennessee? Check Out These Numbers

Kevin Goolsby Photography

Tennessee isn’t just a great place to live; it’s a great place to do business. Whether you are a business owner, seasoned professional or up-and-comer, this great state has a business-friendly climate that makes it easy to succeed in whatever endeavor you pursue, and it has the stats to prove it. Here are seven reasons you should consider doing business in Tennessee.

Impressive Growth

Tennessee boasts an impressive GDP – over $550 billion since Gov. Bill Lee took office in 2019. The state continues to experience growth in many areas, including the percentage of Tennesseans with access to broadband internet, which is an integral part of doing business. The numbers are quite staggering, dropping from 20% without access to now only 1.7%, marking a huge improvement in quality of life and the ability to grow businesses in even the most rural parts of the state. Plus, the arrival of $200 million in broadband funding in December 2025 will guarantee high-speed internet coverage across the state.

Smart Investments

Not only are there plenty of resources available, but there are many incentives that draw businesses to set up shop in Tennessee. There’s no personal income tax, and state and local taxes are among the lowest in the nation. With pro-business regulations and a state budget that operates with a surplus, doing business in Tennessee simply makes sense. In fact, Tennessee has the lowest state debt-per-capita in the country, and it has a AAA bond rating by Moody’s, S&P and Fitch. That expert fiscal management has freed up funds to invest more into areas that build the economy even more, such as public education, international business reach and workforce development.

Certified Sites

Across the state, there are plenty of industrial parks with appealing incentives. From the 75 Regional Commerce Park in McMinn County to the Aerospace Park 1 in Sullivan County to the Adamsville/McNairy North Industrial Park in McNairy County, these certified sites are invaluable additions to Tennessee’s business landscape.

Ideal Location

Location-wise, Tennessee is well-situated for access to larger cities in the Eastern U.S., such as Charlotte, Washington, D.C., Chicago, Atlanta and New Orleans. With airports in major Tennessee cities such as Nashville, Memphis, Knoxville and Chattanooga, it’s also incredibly easy to travel wherever your business needs may take you.

Small Business Success

It’s not difficult to see why so many choose to do business here, including small and big businesses. There are approximately 741,196 small businesses operating in Tennessee, employing about 1.2 million people and making up 99.5% of Tennessee businesses. Of these small businesses, 45% are owned by women and 6.5% are owned by veterans.

Diverse Economy

Big businesses have a strong foothold here, too. Eleven Fortune 500 companies are headquartered within the state: FedEx, AutoZone, International Paper, HCA Healthcare, Dollar General, Delek US Holdings, Tractor Supply, Community Health Systems, Unum Group, Eastman and Asurion. Together, these companies span a wide variety of industries. With these major companies and others, Tennessee is known as a state that produces quality goods with excellent craftsmanship. Other well-known companies operating in Tennessee include Nissan, Oracle, General Motors, Volkswagen, Bridgestone, Whirlpool, GE, Duracell, La-Z-Boy, M&M, Kellogg and Colgate-Palmolive.

Great Place to Live

In short, Tennessee is a state that offers all the right ingredients for businesses to be successful: an educated workforce, pro-business regulations and taxes, and support from local and state governments, not to mention a globally recognized legacy of quality craftsmanship and manufacturing. Combine all of this with the fact that Tennessee is a great place to live – thanks to its incredible culture, weather, outdoor recreation opportunities, entertainment and sports options – and there’s no doubt that Tennessee is one of the top states to do business.