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
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 |