A new report by Roofstock looking at the U.S. metropolitan areas with the most startup business activity. Startup businesses spur economic growth in the form of innovation and efficiency across U.S. markets and were responsible for 2.2 million new jobs in 2018. Unfortunately, entrepreneurship has experienced a general decline for decades, and the ripple effects of COVID-19 figure to stifle startup business activity even further. Researchers ranked metropolitan areas according to each location’s startup formation rate and included the percentage of all new jobs that startups account for annually.
The startup formation rate in the Tullahoma-Manchester metro—defined as the number of new firms in a given year divided by the total number of firms—is 4.79%, compared to the national average of 8.13%. New startup businesses in the Tullahoma-Manchester metro account for 9.93% of new jobs created per year.
The startup formation rate in Tennessee—defined as the number of new firms in a given year divided by the total number of firms—is 7.24%, compared to the national average of 8.13%. New startup businesses in Tennessee account for 12.78% of new jobs created per year. Out of all U.S. states, Tennessee has the 20th most startups.