The Best (And Worst) States For Solution Provider Competition

The Competitive Situation

States that rank high on the CRN 2018 Best States to Start a Solution Provider Business analysis are generally attractive because they have strong economic growth, low taxes, innovative business climates and/or educated workforces. But those attributes also likely mean there are already many solution providers competing to serve the businesses and organizations within those states. That makes it tough for a solution provider startup to gain a foothold.

This year's Best States analysis looks at how much competition a startup solution provider can expect from established solution providers in each state.

The Solution Provider Competitive Saturation Index is based on data from The Channel Company's solution provider database. The state ranked No. 1 has the fewest number of solution providers to potentially compete with while No. 50 has the most potential solution provider competitors.

Keep in mind that the saturation index often runs counter to other business climate criteria. States with otherwise poor business climate scores, many of them more rural states, have fewer solution providers that a startup has to compete against. But there are also likely fewer businesses, which means fewer potential customers.

Best States No. 10: Mississippi

The Magnolia State has only 468 solution providers.

Best States No. 9: Hawaii

The Aloha State has only 455 solution providers.

Best States No. 8: Rhode Island

The Ocean State has only 419 solution providers.

Best States No. 7: Montana

The Treasure State has only 380 solution providers.

Best States No. 6: Alaska

The Last Frontier state has only 290 solution providers.

Best States No. 5: West Virginia

The Mountain State has only 261 solution providers.

Best States No. 4: Vermont

The Green Mountain State has only 248 solution providers.

Best States No. 3: South Dakota

The Mount Rushmore State has only 240 solution providers.

Best States No. 2: North Dakota

The Peace Garden State has only 214 solution providers.

Best States No. 1: Wyoming

The Cowboy State has only 187 solution providers.

Worst States No. 41: Massachusetts

The Bay State has 4,654 solution providers.

Worst States No. 42: Pennsylvania

The Keystone State has 5,508 solution providers.

Worst States No. 43: Georgia

The Peach State has 6,089 solution providers.

Worst States No. 44: Illinois

The Prairie State has 6,134 solution providers.

Worst States No. 45: New Jersey

The Garden State has 6,624 solution providers.

Worst States No. 46: Virginia

The Old Dominion State has 7,083 solution providers.

Worst States No. 47: New York

The Empire State has 9,005 solution providers.

Worst States No. 48: Florida

The Sunshine State was No. 1 in our overall Best States ranking this year. But with 10,153 solution providers already there, a startup will have plenty of competition.

Worst States No. 49: Texas

The Lone Star State has 11,667 solution providers.

Worst State No. 50: California

The Golden State has 22,346 solution providers.