Glasgow has once again been recognised as the best city in the UK for small and medium-sized enterprises (SMEs), according to iwoca’s annual report. The city outperformed major competitors, including London, which did not make it into the top 25. This accolade highlights Glasgow’s growing appeal as a hub for small businesses, driven by favourable commuting times, job density, and a supportive economic environment.
Key Takeaways
- Glasgow ranks first in iwoca’s ‘Top 25 Towns & Cities for SME Jobs’ list for 2023.
- The city boasts an average commuting time of just 29 minutes, significantly lower than London’s 40 minutes.
- Glasgow has a job-to-worker ratio of 1.03, indicating a healthy job market.
- Other cities in the top three include Salford and Liverpool, with notable growth in the North West region.
- London continues to struggle with high house prices and long commutes, leading to its absence from the top rankings.
Glasgow’s Winning Factors
The report, which evaluates cities based on various metrics such as average wages, travel times, house prices, and the growth of small businesses, revealed that Glasgow excels in several key areas:
- Short Average Commute: With an average commute of 29 minutes, Glasgow residents enjoy significantly less travel time compared to their counterparts in London.
- Job Density: The city has a robust job market, with 1.03 jobs available for every working-age individual, making it an attractive location for job seekers.
- Affordable Housing: While house prices have risen, they remain manageable compared to London, where the median house price is over £582,000.
- Supportive Business Environment: Glasgow has seen a surge in small business growth, particularly in the tech and creative sectors, bolstered by urban regeneration initiatives.
The Rise of Other Cities
While Glasgow leads the pack, other cities are also making strides in supporting SMEs:
- Salford: Climbed to second place, with a 25% increase in small businesses from 2017 to 2022.
- Liverpool: Moved up to third place, benefiting from low house prices and a similar average commute time to Glasgow.
The North West region is emerging as a significant hub for small businesses, with five cities in the top ten, indicating a shift in economic activity away from traditional centres like London.
The Impact of the Pandemic
The pandemic has reshaped the landscape for small businesses, prompting many to reconsider their operational bases. Christoph Rieche, CEO of iwoca, noted that the pandemic has influenced where people want to live and work, leading to a renewed focus on smaller towns and cities that offer a better quality of life.
Voices from the Ground
Local business owners echo the report’s findings. Vernon Poppleton, who runs an insulation company in Glasgow, stated that the city is ideal for small businesses due to its manageable costs and supportive community. He emphasised the opportunities for growth in the region, particularly as more people seek sustainable living solutions.
Colin Goldstein, Commercial Growth Director at iwoca, highlighted the importance of SMEs in creating jobs and driving local economies. He encouraged job seekers to explore opportunities within SMEs, which often provide dynamic and fulfilling career paths.
In conclusion, Glasgow’s recognition as the best city for SMEs for the second consecutive year underscores its growing importance as a business hub. With its favourable conditions for small businesses, the city is poised for continued growth and success in the coming years.
Sources
- Glasgow named best city for a small business to be based, The Independent.
- Glasgow named best British city to work for an SME for the second year running, Startups Magazine.
