iwoca’s ‘Top 25 Towns & Cities for SME Jobs’ list ranks areas using ONS data on average wage, commute, job density, house price and growth of the number of small businesses – all criteria that jobseekers look for in employment. The analysis reveals Newcastle, Ipswich and Peterborough as the top three areas to consider living in if you want to work for a small business.

Newcastle has claimed the number one position, climbing two places since 2024, thanks to a strong local economy and a growing small business sector. Residents benefit from short commute times, averaging just 24 minutes compared to London’s 39 minutes, making work-life balance more achievable. Over the past five years, Newcastle’s SME sector has grown by 6.6%, further strengthening the city’s reputation as a top destination for starting and growing a business.

Job density in Newcastle stands at an encouraging 1.06 per worker, ensuring strong prospects for residents seeking employment. The city’s median hourly wage of £19.41 is among the most competitive in Britain.

Housing in Newcastle remains accessible, with median house prices at £199,995 – less than half London’s median price. A winning blend of career opportunity, affordability, and lifestyle makes Newcastle an ideal destination for jobseekers attracted to small business roles.

Ipswich and Peterborough: thriving SME centres

Ipswich achieved second place in 2025, climbing nine slots due to strong wage growth and its position as one of the best towns for quick commutes of just 18 minutes. The city had a 13.2% increase in small businesses since 2018, making it one of the highest SME growth rates nationwide.

Peterborough, after topping the rankings last year, now holds third place. The city stands out for an increase in the number of SMEs by 9.8% between 2019 and 2024, affordable homes with a median price of £240,000, and an average hourly wage of £18.84.

SME job growth powered by the regions

The top ten is rounded out by towns and cities from across the UK, including Conwy (Wales, 4th place), Preston (5th), Norwich (7th), and Glasgow (9th). The continued prominence of regions outside London demonstrates the widespread opportunity for those starting or developing SME careers across Britain.

London misses out… again

Greater London does not appear in the top 25 for the fourth time, ranking 75th in 2025. Long commutes of an average 39 minutes, high house prices with a median of £526,000, and slowing SME growth continue to place the capital far behind many regional counterparts – despite London’s significantly higher average hourly pay of £26.74.

Seema Desai, COO at iwoca, said: “One of the ways that small businesses are able to boost our economy is by creating local jobs. Our research shows that Newcastle, Ipswich, and Peterborough are leading the way, creating valuable career opportunities and helping local communities thrive. Their success highlights the crucial contribution small businesses make to economic growth, both regionally and nationally.”

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