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2017 Best (And Worst) States For Business Climate And Competitive Environments For Solution Provider Startups

Entrepreneurs starting up a solution provider business should consider states with a thriving economy, a large base of potential customers and limited competition from other solution providers.

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Favorable Climate

An entrepreneur may have great ideas for launching a solution provider business. But such factors as the number of potential business customers in a state, a state's growth rate and competition from other solution providers will ultimately determine a startup's success or failure.

This year's Best States analysis looked at the business climate and competitive environment in each state. The former covered the number of private sector firms in each state, the number of small (less than $10 million in annual sales) and midsize (between $10 million and $999 million) business in each state, and each states' gross domestic product and GDP growth, among other metrics.

The Solution Provider Competitive Saturation Index measures a state's competitive environment – how much competition a startup solution provider can expect in any one state. The index is based on The Channel Company's solution provider database and calculates the number of potential business customers per solution provider with states ranked No. 1 being the most favorable for solution provider startups and No. 50 having the most competition.

Keep in mind that the saturation index often runs counter to other business climate criteria: States with otherwise poor business climate scores may have fewer solution providers against a startup has to compete.

The following are the 10 states with the highest rankings for business climate/competitive environment, listed from No. 10 to No. 1. The states with the lowest rankings are then listed from No. 41 to No. 50.

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