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Glasgow named best city for employees of small firms

2 May 2023

A study of the best cities in the UK to work for a small business has found that Glasgow, Salford and Liverpool offer the best SME job opportunities and quality of life.

SME lender Iwoca has published its annual Top 25 Towns & Cities for SME Jobs 2023 ranking, revealing the best places in Britain to work for a small business.

Glasgow tops the list for the second year in a row, with Salford and Liverpool ranking second and third respectively. The research ranks UK cities using ONS data on average wages, commute time, house prices, job density and growth in the number of small businesses.

London is absent from the top 25 for the second year running; while enjoying a high hourly wage, Londoners face some of the highest house prices in the UK with a median house price of £582,289 and a typical daily commute of 40 minutes.

The top 12 cities for job opportunities in small businesses

  1. Glasgow
  2. Salford
  3. Liverpool
  4. Blackburn with Darwen
  5. Warrington
  6. Southampton
  7. Newcastle-upon-Tyne
  8. Ipswich
  9. Preston
  10. Cardiff
  11. Slough
  12. Darlington

In first place, Glasgow scored 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.

Glasgow also has 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 4%, causing the city to slip down to joint 16th position.

Liverpool advanced to third place this year from fourth in 2022, scoring well due to low house prices and a 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.

"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." Colin Goldstein, commercial growth director at Iwoca.

Small businesses 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 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.

Written by Rachel Miller.

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