2016 Best (And Worst) States For Solution Provider Competition
Solution Provider Competitive Saturation
States with large concentrations of high-tech businesses might seem to be the best places to start a solution provider business. And it's true that such states have a lot going for them, including a bigger pool of IT workers and a better understanding among potential customers about what IT can do. But it's also true that such states already have many solution provider businesses and the competition for a startup would be especially tough.
As part the annual Best States project, CRN has ranked the solution provider competitive saturation of each state: That is, a state's ratio of solution providers (from The Channel Company's solution provider database) to the number of businesses – potential customers – in the state (from the U.S. Census).
Keep in mind that the states with the most favorable competitive saturation ratios are often rural and have smaller numbers of businesses. They may be far down the lists in other criteria, such as workforce education levels or opportunities for innovation and growth. And they likely score low on millennial-specific criteria used in this analysis.
The following are the 10 states with the best rankings for solution provider competitive saturation, listed from No. 10 to No. 1. The states with the lowest rankings are then listed from No. 41 to No. 50.
Best States No. 10: Iowa
Iowa has 986 solution providers and is ranked No. 30 for the number of businesses in the state.
Best States No. 9: Maine
Maine has 486 solution providers and is ranked No. 39 for the number of businesses in the state.
Best States No. 8: Vermont
Vermont has only 261 solution providers, and is ranked No. 48 for the number of businesses in the state.
Best States No. 7: South Dakota
South Dakota has 293 solution providers and is ranked No. 45 for the number of businesses in the state.
Best States No. 6: North Dakota
North Dakota has only 264 solution providers and is ranked No. 46 for the number of businesses in the state.
Best States No. 5: Montana
Montana has 419 solution providers and is ranked No. 40 for the number of businesses in the state.
Best States No. 4: Mississippi
Mississippi has 527 solution providers and is ranked No. 35 for the number of businesses in the state.
Best States No. 3: Arkansas
Arkansas has 569 solution providers and is ranked No. 33 for the number of businesses in the state.
Best States No. 2: West Virginia
West Virginia has 318 solution providers and is ranked No. 42 for the number of businesses in the state.
Best States No. 1: Wyoming
Wyoming, while ranked No. 48 overall in this year's Best States analysis, has the lowest rate of solution provider competition among the states. There are only 189 solution providers and is ranked No. 49 for the number of businesses in the state.
Virginia, while ranked No. 3 overall in this year's Best States analysis, is a tough place competition-wise, to start a solution provider business.
Worst States No. 41: Arizona
Arizona is ranked No. 21 for the number of businesses in the state, but has 2,835 solution providers to serve them.
Worst States No. 42: Texas
Texas is ranked No. 4 for the number of businesses in the state, but has 11,424 solution providers to serve them.
Worst States No. 43: California
California is ranked No. 1 for the number of businesses in the state, but has 21,451 solution providers to serve them.
Worst States No. 44: Massachusetts
Massachusetts is ranked No. 14 for the number of businesses in the state, but has 4,338 solution providers to serve them.
Worst States No. 45: Connecticut
Connecticut is ranked No. 28 for the number of businesses in the state, but has 2,258 solution providers to serve them.
Worst States No. 46: New Jersey
New Jersey is ranked No. 7 for the number of businesses in the state, but has 6,104 solution providers to serve them.
Worst States No. 47: New Hampshire
New Hampshire is ranked No. 41 for the number of businesses in the state, but has 1,144 solution providers to serve them.
Worst States No. 48: Georgia
Georgia is ranked No. 10 for the number of businesses in the state, but has 6,355 solution providers to serve them.
Worst States No. 49: Maryland
Maryland is ranked No. 20 for the number of businesses in the state, but has 4,330 solution providers to serve them.
Worst States No. 50: Virginia
Virginia, while ranked No. 3 overall in this year's Best States analysis, is a tough place competition-wise, to start a solution provider business. While it is ranked No. 12 for the number of businesses in the state, there are 6,222 solution providers to serve them.