Croydon emerges as London’s fastest growing microbusiness hotspot
Small business numbers in Croydon are growing at a faster rate than anywhere else in London, new GoDaddy research shows. The constituency of Croydon Central (incorporated into Croydon East during the 2024 change in boundaries) saw a spike of 24% in its microbusiness numbers during the past 12 months, making it the fastest growing area in London and third in the UK overall.
Meanwhile, Croydon South also broke into the country’s top 10 fastest growing constituencies, placing 8th overall with a year-on-year increase in microbusiness numbers of 14%, making it the second fastest growing area in London, behind Croydon Central.
The findings come from Venture Forward, GoDaddy’s international research initiative that studies the economic impacts of small businesses and the attitudes of the owners who start them. The initiative analyses data from more than 600,000 UK microbusinesses, giving every constituency in the UK a ‘Microbusiness Density’ score.
The microbusiness sector in the UK remains a critical driver of economic growth and employment. Research from GoDaddy, in partnership with Frontier Economics, found that each additional digital microbusiness is associated with an average increase of approximately five jobs per resident.
It also leads to an increase in pay, with findings showing that a 10% year on year increase in microbusiness density leads to an annual £320 increase in median annual pay for full-time workers.
Croydon has also been the focus of wider investment, with Croydon Council putting forward a three-year inward investment plan, whilst the regeneration of the town centre will benefit from £7.2m of additional investment from the Growth Zone budget.
Saffron Saunders, CEO at Startup Croydon commented, “Croydon has a robust and active business community. 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. My version of Croydon is ambitious, supportive and incredibly inclusive – our diversity is our strength. Networking events happen regularly in the borough for entrepreneurs to meet, connect and grow together – as well as showcasing local businesses. We also collaborate with other boroughs and across institutions such as local universities to give our local entrepreneurs the support they need to thrive. Croydon is full of resilient, creative and ambitious entrepreneurs that we’re proud to support.”
Jason Perry, The Mayor of Croydon and owner of a family-run small business, commented: “Croydon is powered by fantastic, dynamic and energised people contributing the community, which is especially true when it comes to our entrepreneurs and small business owners. They 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.”
Success can be found on your doorstep
The microbusiness boom in Croydon is happening in parallel with it becoming easier than ever before for people to pursue their entrepreneurial spirit and set up their own companies.
GoDaddy’s Venture Forward study revealed that nearly a third (32%) of small business owners with a digital presence reported needing less than £1,000 to get themselves set up.
While starting a business may seem challenging, aspiring entrepreneurs don’t have to go it alone, with AI being one of the key tools increasingly helping small businesses in a competitive market.
Andrew Gradon, head of GoDaddy UK and Ireland, commented: “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.
“Importantly, it proves that a small business doesn’t mean small ambitions, nor does it mean small impact. Microbusinesses will have a key role to play in unlocking Croydon’s longer-term potential, benefiting the area hugely by providing new jobs and opportunities. However, the same can be said for all constituencies, because when local entrepreneurship thrives, we all thrive.”