iwoca’s annual ‘Top 25 Towns & Cities for SME Jobs’ list, which ranks areas using ONS data on average wage, commute, job density, house price and growth of the number of small businesses, found that in 2023, Glasgow, Salford and Liverpool are the top three areas to consider if you want to work for a small business.

Glasgow came in first place, scoring highly for its short average commuting time and job density. Glaswegians typically spend 29 minutes travelling between work and home, compared to 40 minutes for those living in Greater London. The Scottish powerhouse also boasts a healthy ratio of jobs to workers, with 1.03 jobs available for every individual of working age. As a growing regional hub for tech and creative industries, with significant investment pouring into urban regeneration and infrastructure projects, Glasgow continues to be an attractive place to work and put down roots. 

Media hub Salford climbed from tenth place to second this year, replacing its neighbour Manchester from last year’s ranking. The number of small businesses in Salford grew by 25% between 2017 and 2022, while Manchester only saw growth of four percent, causing the city to slip down to joint sixteenth position.

Liverpool advanced to third place this year from fourth in 2022, scoring well due to low house prices and short average commuting time of 29 minutes. The median house price in the city is £150,000 – St Albans, by contrast, is the most expensive British city in which to own a home, with house prices averaging £625,000. 

Half of top ten dominated by towns and cities in the North West

Five out of the top ten towns and cities are located in the North West, suggesting that the region is a growing hub for small businesses. Salford, Liverpool, Blackburn with Darwen, Warrington and Preston all rank highly on the 2023 list owing to their high rates of SME growth. 

The North West also saw 11,015 new SMEs created between 2017 and 2022. With Liverpool and Greater Manchester on the shortlist for the ‘Investment Zones’ announced in the Spring Budget, opportunities for growth in the region are likely to expand further. 

London missing from top 25 for SME jobs

Greater London failed to feature in the top 25 list for the second time, despite traditionally being considered the most important destination for UK jobseekers. While enjoying a high hourly wage, Londoners face among the highest house prices in the UK with median house price of £582,289, and a typical daily commute of 40 minutes. This combination pushes London down the ranking of towns and cities, suggesting workers seeking small business jobs could broaden their search to other parts of the country. 

Vernon Poppleton owns VIP Spray Foam, an insulation company he set up in Glasgow in 2016. Commenting on Glasgow topping the list for the best place to work for an SME for the second year running, Poppleton said: “Over the last seven years I’ve built up lots of repeat work across Glasgow and Scotland’s Central Belt, and this is the perfect place to be based.”

“My job means I have to travel, but I work with so many architects and small building firms who rate this part of the world as the best place to run their companies from. Commutes are short, house prices have gone up but they aren’t out of control like lots of the UK, and there are a lot of big towns and cities on our doorstep where we can easily work. With more and more people concerned about their carbon footprint and cutting their heating bills, there is a lot of opportunity in and around Glasgow to expand my business and insulate even more homes in the years ahead.”

Colin Goldstein, Commercial Growth Director at iwoca, said: “SMEs both nationally and locally, are creating thousands of jobs and providing the goods and services that keep Britain ticking. Job seekers looking for a fulfilling, dynamic career should consider looking beyond large corporations and to the SMEs in communities right across the UK. It is fantastic to see a wide geographical spread in our top 25 list this year, highlighting the range of thriving towns and cities that best support SMEs and their employees.”