Croydon is predicted to become Britain’s answer to Silicon Valley, according to new research which shows small firms are growing at a faster rate than almost anywhere else. The south London borough saw a 24 per cent spike in microbusiness numbers during the past 12 months, greater than the rest of London and third in the UK overall. Former parliamentary constituency Croydon Central - now mainly Croydon East - came top followed by Croydon South, says data from GoDaddy.

The website builder’s latest Venture Forward report looks into economic impacts of small businesses and attitudes of the owners who start them. Mayor of Croydon Jason Perry, who owns a family-run firm himself, said the town “is powered by fantastic, dynamic and energised people”. He added: “Our entrepreneurs and small business owners are a vital part of our local economy, bringing opportunities and jobs, and it’s encouraging to hear that Croydon has a lot to offer in return.

“It is London’s youngest borough and has a rich history that is diverse, vibrant and steeped in culture and arts. “Alongside this, housing is more affordable and the transport links and networks are excellent. “Croydon has all the ingredients for small business owners to say yes to success.”. Croydon Council has put forward a three-year inward investment plan. Regeneration of the town centre will benefit from £7.2million Growth Zone budget funds.

The UK’s microbusiness sector remains a critical driver of economic growth and employment. Research from GoDaddy, in partnership with Frontier Economics, found that each additional digital company is associated with an average increase of approximately five jobs per resident. They lead to an annual £320 increase in median annual pay for full-time workers. Saffron Saunders, CEO at Startup Croydon, added: “What we lack compared to central London, we make up in creativity and entrepreneurial spirit.

“Here at Startup Croydon, we’ve been supporting the entrepreneurial community for over 40 years through a variety of training programmes on how to start and grow a successful business. “I meet amazing people every day who are hungry for growth, success and writing their own paths. Andrew Gradon, head of GoDaddy UK and Ireland, said: “While microbusinesses flourish across the nation, Croydon has proven to be a hub of entrepreneurial spirit with our Venture Forward data showing that the area is a big draw for small businesses and entrepreneurs.