Tennessee: 2026 Business Market Risk & Industry Survival
Rank #21 of 51 state markets. 10 industries tracked. Population: 6,910,840.
Tennessee ranks #21 out of 51 state markets by average entry risk (41.1). Accommodation and Food Services carries the lowest risk at 29.5 (Low), while Finance and Insurance is the most challenging at 53.4 (Elevated). The 23.8-point spread signals significant variation across sectors. Healthcare and Social Assistance is the largest tracked employer with 420,698 jobs.
Tennessee: 41.1 Average Entry Risk
Tennessee at a Glance
Best Industries for New Entrants in Tennessee
Industries with the lowest entry risk in Tennessee.
Entry Risk by Industry in Tennessee
Compare market entry conditions across industries in Tennessee. Rank indicates position vs. all 50 states.
Tennessee Industry Data: 176,125 Establishments
| Industry | Entry Risk | Rank | Establishments | Employment | Avg Wage |
|---|---|---|---|---|---|
| Accommodation and Food Services NAICS 72 | 29.5 | #13/51 | 16,596 | 316,498 | $27,443 |
| Construction NAICS 23 | 34.8 | #10/51 | 17,112 | 163,374 | $79,546 |
| Real Estate and Rental and Leasing NAICS 53 | 37.2 | #18/51 | 8,372 | 44,774 | $70,922 |
| Administrative and Support Services NAICS 56 | 38.3 | #21/51 | 13,882 | 216,248 | $51,424 |
| Professional, Scientific, and Technical Services NAICS 54 | 39.4 | #25/51 | 31,391 | 177,897 | $104,922 |
| Other Services NAICS 81 | 40.5 | #18/51 | 14,868 | 83,729 | $50,778 |
| Retail Trade NAICS 44-45 | 42.8 | #22/51 | 25,424 | 344,510 | $41,360 |
| Healthcare and Social Assistance NAICS 62 | 47.4 | #38/51 | 24,295 | 420,698 | $68,477 |
| Information NAICS 51 | 48.1 | #37/51 | 10,160 | 54,420 | $115,614 |
| Finance and Insurance NAICS 52 | 53.4 | #33/51 | 14,025 | 125,670 | $109,492 |
Largest Industries in Tennessee by Employment
Metro Markets in Tennessee
9 metropolitan areas with industry-level market scores. Each links to its most favorable industry.
How Tennessee Compares to Neighboring States
Average entry risk across all tracked industries. Lower scores indicate better conditions for new businesses.
| State | Avg Entry Risk | vs TN |
|---|---|---|
| Tennessee | 41.1 | — |
| Alabama | 37.6 | -3.5 |
| Arkansas | 38.6 | -2.5 |
| Kentucky | 39.4 | -1.7 |
| North Carolina | 39.4 | -1.7 |
| Mississippi | 41.2 | +0.1 |
| Virginia | 41.3 | +0.2 |
| Georgia | 46.8 | +5.7 |
| Missouri | 47.8 | +6.7 |
Tennessee: Frequently Asked Questions
2026 state-level data answers to common business-formation questions.
What is Tennessee's overall business entry risk score for 2026?
Tennessee averages 41.1 across 10 tracked industries, ranking #21 of 51 state markets. Lower scores indicate more favorable conditions; the national average sits near 44.
What is the easiest industry to start a business in within Tennessee?
Accommodation and Food Services carries the lowest entry risk in Tennessee at 29.5 (Low). It employs 316,498 workers across 16,596 establishments.
Which sector is the most challenging for new businesses in Tennessee?
Finance and Insurance posts Tennessee's highest entry risk at 53.4 (Elevated). New entrants in this sector face conditions that favor incumbents.
How many businesses operate in Tennessee?
176,125 business establishments are tracked across 10 industries in Tennessee, employing 1,947,818 workers in 2026 data releases from the U.S. Census BDS and BLS QCEW.
What is Tennessee's largest industry by employment?
Healthcare and Social Assistance is the largest tracked employer in Tennessee with 420,698 jobs across 24,295 establishments and an entry risk score of 47.4.