The document emphasizes the vital role of high growth firms in driving economic growth and innovation in Croydon, highlighting their potential to create jobs, boost productivity, and facilitate regeneration. It outlines the challenges faced by the borough, including high youth unemployment and stagnant business growth, while also detailing initiatives to support small and medium-sized enterprises (SMEs) through funding, infrastructure investment, and skills development. The expected benefits include an accelerated economic recovery, increased employment opportunities, and a flourishing entrepreneurial culture.

1. Gazelles and Gorillas in
Croydon
Why high growth and innovation is vital for Croydon’s
economic growth
Jon Rouse CEO Croydon Council
June 2012

2. The Importance of high growth firms and
innovation
• High growth firms are job creators
• High growth firms drive productivity
• High growth firms are responsible for substantial
proportion of economic growth
• Innovation lends itself to high growth potential
• High growth firms accelerate the regeneration of
areas

3. So why the need for high growth firms in
Croydon?
• Highly qualified skills base (above national
average NVQ level 4 qualified)
• High levels of youth unemployment:18-24 years
(above national average)
– However Croydon is high performing area for young
entrepreneurship (10% Croydon vs 6% UK average)
• Stagnant business growth rate (less than 1% in
this quarter)
• High public sector employment dependency

4. High growth in Croydon:
Sectoral Share
Some of our largest sectors are classified as
high growth and / or exhibit innovation
– Information and communication (7%)
– Professional scientific and technical activities (9%)
– Administration and support service activities (14%)
– Wholesale and retail trade (8%)

5. Supporting high growth SMEs in Croydon
• Competitive rents outside central London
• Proximity to London and established clusters (Silicon
roundabout in Old Street)
• Excellent transport connections
• New innovation centre and business support package -
£5m
– Rate relief for SMEs new to Croydon
– Enabling new ways of working (assimilating new / flexible work
spaces)
• Investment in infrastructure and public realm - £18m
• Proactive Chamber of Commerce

6. National support available to high growth
SMEs
– Access to finance and capital
• UK Innovation and Investment Fund
• Angel Co-Fund (£50m)
• Tax Schemes - tax breaks for angel investing (EIS, SEIS); R&D tax
credits; Patent Box - reduced 10 per cent rate of corporation tax for
profits arising from patents is being introduced from 1 April 2013
– Business Development
• Growth Accelerator – £200m business development programme for
SMEs nationally
• National Mentoring Programme for SMEs
– Skills
• Employer Ownership of Skills Pilot (£250m)
• Increase in adult apprenticeships

7. Business Innovation Centre
• Funded under the Mayors Regeneration Fund
• Innovation Centre concept currently under development
• Potential to embed in HE offer in partnership with Sussex
University and Croydon College
• Potential take-up of graduate apprenticeships in high
growth firms
• Potential funding mechanism under consideration
(innovation loan fund / vouchers etc.)
• Enable cross sectoral innovation

8. How will Croydon benefit?
• High growth firms will kick-start Croydon’s and C2C LEP
area’s economic recovery
• Competitive local labour market → increase in
employment opportunities
• Increased take up of business premises → buoyant office
market
• Agglomeration impact → spill over of established clusters
into Croydon
• Economic growth and regeneration → increase in
productivity, income and Gross Value Added.
• Entrepreneurial culture → more home grown gazelles !