NerdWallet ranked the best cities to open up shop in Tennessee.
Nashville and Knoxville, Tennessee may be popular tourist
sites, but they aren’t the top cities for small business.
NerdWallet, a company that offers financial information, ranked the best places to start a business in
Tennessee. The list compared 85 places in the state with populations of more
than 5,000.
Surprisingly, big cities like Nashville and Knoxville did not
crack the top 10. Cities that fared particularly well on the list were around
large metropolitan areas.
“Tennessee is a great place to do business because of our
people, our resources and a state government that, by and large, tends not to
interfere,” says NFIB/Tennessee State Director Jim Brown.
Here are the top-10 places to start a business in Tennessee:
1. Alcoa
2. Pigeon Forge
3. Crossville
4. Lebanon
5. Brentwood
6. Greeneville
7. Pulaski
8. Franklin
9. Sparta
10. Bristol
With no income tax, Tennessee’s tax system is an incentive for
many businesses to set up shop in the state, according to NerdWallet. Though,
businesses typically see those taxes elsewhere.
“We do have a pretty high sales tax, so if you are a retail
small business, that can be a concern,” Jeff Cornwall, professor of
entrepreneurship and Jack C. Massey chair of entrepreneurship at Belmont
University, told NerdWallet. “There’s always a trade-off : When you don’t have
an income tax, you have a higher sales tax.”
The state also has a positive climate for business owners
facing regulations compared with surrounding states, making Tennessee a
competitive force.
“We encourage expanding and relocating businesses to consult
with the Tennessee Department of Economic and Community
Development,” says Brown. “They may be eligible for various grants
and tax credits. For instance, in some counties with higher unemployment, they
may qualify for enhanced job tax credits.”
Brown says that there are still a few obstacles that small
businesses face. Tennessee still needs to reform healthcare to stabilize
spending and franchise and excise taxes that come with an “inflexible process
and onerous penalties” for business owners, he says.
NerdWallet highlighted areas where Tennessee could improve the
overall climate for small business owners, specifically within certain
industries that may be falling behind. For example, there’s a need for improvement
in infrastructure for education and training in booming industries.
