Aside from being the birthplace of bluegrass, Dolly Parton and Justin Timberlake, the Volunteer State has gained a name for itself as an entrepreneurial mecca for Millennials. In a recent study, Music City and its distant neighbor Knoxville ranked among the top ten best cities in the U.S. for young entrepreneurs.
The economists at Thumbtack broke down this year’s Small Business Friendliness Survey to find the cities where small business owners aged 34 and under are happiest with the local business climate, and Nashville came in fourth, with Knoxville pulling up a close seventh.
The study took into consideration 3,726 responses from entrepreneurs aged 34 and under, taken from 18,000 total survey responses from small business owners of all ages. The largest demographic bloc to enter the workforce since the Baby Boomers – 80 plus million, to be more exact – is also the most educated in history and laden with entrepreneurs, with half to two thirds of Millennials interested in entrepreneurship, and 27 percent already self-employed, according to the U.S. Chamber of Commerce Foundation.
In addition to their attraction for Millennials, Nashville and Knoxville also gained points for overall friendliness to small business, with Knoxville coming in fifth, and Nashville sixth. Not overwhelmingly surprising in a state that has consistently received high marks for its friendly business environment and policies, which include no state income tax and a functional system of checks and balances among the three branches of government.
“Recent reforms to our workers’ comp, unemployment, tort and tax systems are producing great results,” says Tennessee NFIB state director Jim Brown. “For example, in-state manufacturers like McKee Foods and Tenneco are reporting expansions and job growth, not exits to other states.”
Much of these reforms and policies are due to the fact that many of the policymakers are small business owners themselves, with 37 of the 132 legislators serving as NFIB members.
“Government stays out of the way for the most part and local leaders connect through area chambers and entrepreneurial mentoring organizations,” says Brown. “Tennessee not only is known as ‘the Volunteer State,’ but our successful entrepreneurs like to give back in many ways.”
