Hundreds of jobs will be created when the council opens a centre for entrepreneurs.
The Innovation Centre will house new and small businesses where they can share offices and IT equipment.
One of the aims is to support entrepreneurs who may not usually get help.
It will be funded by a £1.5m grant from the Mayor of London’s post-riot regeneration fund.
The council will take out a lease in existing office space, which will likely be near East Croydon station, and sublease it to the preferred operator.
It will be linked to the proposed enterprise hub in London Road, which will support local independent businesses and help jobseekers and people wanting to improve their skills.
The centre will support more than 260 businesses in the initial ten-year lease and the aim is to create 470 jobs.
It will accommodate around 40 businesses at any one time as well as providing several workspaces, high speed internet access and IT support.
Cabinet member for communities and economic development, Councillor Vidhi Mohan, said: “The Innovation Centre will fill an unmet demand that has been identified within Croydon for the provision of this new type of workspace to support new business potential while linked to a university.
“It will be the flagship for Croydon having a reputation as an ‘enterprising city’ and for the council’s plans for economic growth, employment creation and the development of skills.”