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Taking responsibility for the economic growth of an entire state, with a gross state product of US$448 billion and a population of 7.2 million, is no walk in the park. Add to that a political climate increasingly marred by polarization and the disintegration of mutual respect, and the task becomes even more formidable.
Yet doing it with aplomb is Stuart C McWhorter, Commissioner of the Tennessee Department of Economic and Community Development (TNECD).
From a young age, he was inspired by his father, a pharmacist who worked his way up to become Chair of the Hospital Corporation of America. So when it came to choosing a career path, McWhorter enrolled in and achieved a master’s degree in hospital administration from The University of Alabama.
“I was following in his footsteps. He was my mentor and somebody I looked up to and admired his whole career,” he tells The CEO Magazine.
After graduation, McWhorter moved to Nashville where his father was also living. “In 1996, he retired and we started a venture capital company together,” he recalls. “He and I spent nearly 20 years together building this firm, and it’s still going today.”
It was during this time in venture capital that the spark for a career in public service was lit. “My father was very politically active here in the state of Tennessee,” he says. “He was advocating for the things he was very passionate about.”
When his father passed away in 2015, a period of reflection followed as McWhorter considered his future in venture capital. “I decided I would transition out of the business, and figure out what life had in store for me,” he reveals.
It was at this time that he was asked by then Republican candidate, Bill Lee, to enter his campaign team for the governorship of Tennessee. “After he won the primary he said, ‘Hey, I’d love for you to consider coming over and being a part of this with me,’” McWhorter recalls.
Inspired by a sense of duty to his state, and the philanthropic spirit of his late father, McWhorter decided to get on board.
“I had a deep sense for giving back more than anything,” he says. “I was raised by a father who grew up with nothing. He worked very hard, he was very philanthropic with his time and his money, and I saw how that gave him so much joy. I was just so fortunate to be around that in my career from a young age.
“I do this job because I care deeply about what goes on in this state.”
McWhorter’s current role as TNECD Commissioner is his second role in state government. He initially served as the Commissioner of Finance and Administration when Governor Lee was elected between 2019 and 2020. After a short two-year return to the private sector, he took up his current role in 2022.
Since the beginning of his tenure, TNECD has had almost 160 projects that provide more than 21,700 job commitments and US$10.9 billion in capital investment.
Working on the projects are around 100 team members, divided into three primary groups: business development, community and rural development, and small business and entrepreneurs.
“The one that gets probably the most attention is our business development group,” McWhorter says. “We work with about a dozen industry verticals mostly on relocation and expansion projects. About 70 percent of our projects are expansions.”
The community and rural development side is on the rise again. “There’s a renaissance of the rural United States happening, particularly in the south-east,” he explains. “Folks on our team work very closely with these local communities. As the state grows, a lot of our smaller communities grow.”
The third area focuses its support on small businesses and entrepreneurs.
“We have entrepreneur centers in every major city in our state that provide wraparound supports for entrepreneurs, whether that’s mentorship, advisory services, curriculum or helping entrepreneurs create, grow and scale a business,” he adds.
McWhorter confirms that over the past few years, economic growth has been impressive. “Since the Governor was sworn in in 2019, we’ve announced close to 500 projects, close to 100,000 net new jobs in our state. And it’s a remarkable number, but almost close to US$40 billion of CapEx,” he says.
He cites the investment of multinational computer technology giant Oracle as an example, providing 8,500 jobs and a CapEx of more than US$1 billion.
McWhorter pays tribute to the elements that make the state a uniquely attractive place for investment. “I think first off, it is a business-friendly state,” he reflects. “Our tax code and regulatory environment is supported by a governor and legislature that are constantly looking for ways to lower taxes and regulatory hurdles across a variety of industries, for both large and small businesses.
“We are also committed to fiscal responsibility. We’ve had decades of great leadership to be able to save for rainy days. We don’t borrow money on the backs of taxpayers and from businesses to pay the bills.”
It is this commitment to fiscal responsibility that makes McWhorter confident the state will continue to be a great place to live, work and invest.
“It’s going to be really important that we just try to maintain what’s been built over these decades going into the future,” he confirms.
“We must continue to make these long-term investments, and continue to make decisions and investments that are in the best interest of the state long-term, not for some individual or political statement.”
McWhorter also hails the location of the state as important. “From a geographic standpoint, we’re right in the middle of what is probably the strongest part of our country,” he says. “We’ve had phenomenal growth, not just in Tennessee, but across all states that border Tennessee. So from a logistics perspective, we are very lucky.”
The famous southern hospitality is also a powerful drawing card. “We hear from CEOs who make these multimillion and multibillion-dollar decisions that they feel welcome in Tennessee,” he adds. “Here, we all get along and we all want to work together to win, no matter who gets the credit.”
This is often a difference-maker for CEOs, he explains, who appreciate being surrounded by people who are collaborative and care deeply about the difference that investment will make to their community. “We are the Volunteer State. In Tennessee, we try to help everybody,” he says.
TNECD has a number of key initiatives that it’s currently working on. One of these is its nuclear energy initiative in the Oak Ridge National Laboratory, a world-leading R&D facility with a historic significance.
“It was founded as part of the Manhattan Project back in World War II. This has had a very big significance in the state of Tennessee,” McWhorter explains
“Then we have other assets in the state that have focused on nuclear energy, particularly with Tennessee Tech and University of Tennessee, and Knoxville with University of Tennessee and Chattanooga, which gives us a unique situation.
“Last year the Governor started to think about clean, sustainable energy going forward – and clearly, nuclear is a great way to achieve that. Because of Oak Ridge, he created two things.
“First, a nuclear energy advisory council, filled with bright people to help provide insights and recommendations to the Governor on policy trends and how to tackle the next 10–20 years of nuclear policy. And in order to help supplement those thoughts and initiatives, he created a nuclear energy supply chain fund.”
This fund has been set up and managed by the TNECD for the purpose of further strengthening the workforce and ecosystem already in place.
McWhorter also wants to boost the level of investment in the state’s R&D institutions. “We have strong assets in our state, with dozens of universities, research institutions, the Arnold Air Base and, of course, Oak Ridge, but even though many companies call Tennessee home, they’re not investing here,” he points out.
“So we sit down with them and ask, ‘What can we do as a state to help you think about making those investments in our state versus elsewhere?’”
TNECD also has a close working relationship with educational institutions and the private sector, with investment in educational institutions key to pursuing its aim of workforce development.
McWhorter also believes in playing a supporting role to the private sector, rather than a paternalistic one. “The Governor’s view is that we should let the private sector solve problems, rather than government. But we can connect the dots for companies,” he says.
“We’ve grown quite a bit from a standpoint of venture capital and private equity investing in our state, but we have a significant opportunity to do more.”
Other essential partners for TNECD are local chambers of commerce and authorities, such as Maury County Chamber & Economic Alliance, which provides R&D capabilities to incoming industries.
“We have fantastic partners that we work with, and we couldn’t do it without them, that’s for sure,” he says.
True to this spirit of collaboration, McWhorter professes the significance of bipartisanship in the long-term success of the state.
“We’ve had decades of great leadership, regardless of party. Who you affiliate with in the party doesn’t matter as Governor,” he insists.
“We have lots of challenges ahead, but we’re fiscally sound. We certainly don’t want to be complacent with the work that we’re doing and rest on any laurels that we have, but we feel like we’ve got a great opportunity to continue to do great things.”
For McWhorter, it all comes back to the power of embodying Tennessee values.
“We want to be smart about our growth. We want to align with companies that value Tennessee and the Tennessee values. It’s about treating people with respect,” he says.
“Tennesseans care deeply about our state. They care deeply about their neighbors. No matter what personal views they may have, people get along with each other. That’s what makes Tennessee so special and unique, and a great place to live and work.”
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