The coronavirus crisis limited travel, gatherings and even most dining out or entertainment for a while last year, cutting more than 22 million U.S. jobs, including more than 42,000 jobs across Tennessee.
But amid the challenges of COVID-19, the pandemic also spurred a record number of business starts in Tennessee.
New business filings in the first quarter of 2021 grew by more than 55% from a year ago to a record high during the first three months of the year. Tennessee Secretary of State Tre Hargett said the jump in business starts so far this year marks the largest year-over-year gain in the 28 years his office has kept such business filing data “and is an encouraging sign and strong vote of confidence in Tennessee.”
Spurred by the job disruptions caused by the pandemic and aided by government stimulus payments and assistance, many displaced workers seized the chance to start their own business during the pandemic, experts say.
“Despite the widespread economic disruption the pandemic launched, forcing thousands of small businesses to shut their doors, American entrepreneurship has skyrocketed,” said Victoria Baltz, the resource coordinator at the INCubator, Hamilton County’s business development center in North Chattanooga. “We’re seeing that play out locally too, especially in our Hamilton County INCubator.”