David Cameron’s enterprise advisor Lord Young says small businesses have entered a “golden age”, with numbers of businesses increasing 760,000 to 5.2 million since 2010.

The sentiment came in a report published today which investigates conditions for small businesses in the UK and compares the country’s culture of enterprise with others in Europe.

Technological advances, particularly online, have broken down barriers that previously stopped many good ideas becoming strong companies, it states.

The roll-out of faster broadband connections has enabled individuals to reach new customers and do deals, it added.

It also noted a change in culture towards working practices, with many deciding to work for themselves out of choice and not commercial necessity.

Responding to the findings, David Cameron, the prime minister, said: “Lord Young has made a huge contribution as my enterprise advisor, with his reports driving home the importance of getting things right for small businesses and start-ups.

“Small firms play a huge role in the economy and are absolutely key to delivering our long term economic plan. As well as being crucial enterprises in their own right, so often they also underpin the success of much larger companies as vital links in the supply chain.”

Since his appointment, Lord Young has released a series of reports into conditions for entrepreneurs and small businesses.

These have influenced government policy in the areas of procurement from public sector bodies and stronger links between universities and local businesses.

The government’s growth voucher scheme, which helped growing firms pay for the trappings of growth, also stemmed from a Lord Young report.

Speaking today he said: “In the last 5 years I have met countless numbers of inspiring entrepreneurs and small firms – from all ages and backgrounds and all reporting that starting a business is the most exciting and challenging thing they have ever done.

“My report reflects on the key developments that government and its partners have supported to raise ambition about enterprise and enable entrepreneurs to build successful businesses.”