Newcastle upon Tyne, Ipswich and Peterborough are the best places to work for a small business in Britain based on commute times and wages, according to a new study.
SME lender Iwoca has published its annual Top 25 towns and cities for SME jobs for 2025, revealing the best places in Britain to work for a small business. The ranking is based on a range of criteria that jobseekers look for, including average wages, commute time, house prices, job density and small business growth.
Newcastle upon Tyne takes the number one spot for the first time, while Ipswich and Peterborough complete the top three, cementing the East and North East as hotspots for ambitious SME talent. However, for the fourth year in a row, Greater London has not made the top 25.
Newcastle has climbed two places since 2024, thanks to a strong local economy and a growing small business sector. The study suggests that "a winning blend of career opportunity, affordability and lifestyle" makes Newcastle an ideal destination for jobseekers attracted to small business roles.
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%, 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.
Small business growth spots
Ipswich and Peterborough are also thriving SME centres. Ipswich has 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 small firms by 9.8% between 2019 and 2024, affordable homes with a median price of £240,000, and an average hourly wage of £18.84.
"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." Seema Desai, coo at iwoca.
The top ten is rounded out by towns and cities from across the UK, including Conwy (4th place), Preston (5th), Stafford (6th), Norwich (7th) and Tewkesbury (8th). Glasgow and Cambridge share ninth place. The continued prominence of regions outside London demonstrates the widespread opportunity for those starting or developing SME careers across Britain.
Greater London has ranked 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 its the higher average hourly pay of £26.74.
Written by Rachel Miller.