by Beth Phillips, IPS CO
Entrepreneurs have been playing an important role in Tennessee’s economy, generating more than $23 billion, or 12 percent of total personal income, in 2006. In addition, firms with fewer than 20 employees constituted 84 percent of all firms in Tennessee and made up nearly 20 percent of Tennessee’s 3.7 million-plus total jobs.
These findings were outlined in the report, “Entrepreneurship in Tennessee: Striving for Success,” by Michael Wilcox and Dayton Lambert, assistant professors of agricultural economics with the University of Tennessee Institute of Agriculture. The researchers say this study will help develop baseline statistics on entrepreneurship. Also, because it looks closely at rural areas, the data will help state officials determine what can be done to assist entrepreneurs.
The report, which was supported by the UT Institute for Public Service and the Tennessee Department of Economic and Community Development, was released during Global Entrepreneurship Week in November. The initiative was sponsored by the Kauffman Foundation to promote the entrepreneurial aspirations of young people worldwide. More than 30 different organizations hosted events for small business owners and aspiring entrepreneurs in all regions of the state with the goal to inspire young people to embrace innovation, imagination and creativity.
“Tennessee appears to enjoy a comparative advantage with respect to growth in its stock of entrepreneurs relative to the Southeastern region,” Lambert said. “But a single answer as to the state of entrepreneurial growth in Tennessee is difficult to discern because the evidence is mixed, and depends on where one looks and what measure is used.”
There is a strong relationship between entrepreneurship, the creative class and economic growth. “Overall, the results indicate clearly that, on average, counties with more entrepreneurs and with more members of the creative class experienced larger gains in total employment and business establishment growth per job, especially in the non-metropolitan counties of the Southeastern region,” according to Wilcox.
“Using university resources and expertise to foster entrepreneurship and innovation is a key focus of the University of Tennessee’s efforts to advance the economic well-being of Tennesseans,” said Beth Phillips, IPS economic development specialist.
To access the report, visit www.ips.tennessee.edu/economicdevelopment. ■
