Over the last couple of weeks we've been talking to people in the coworking community about the likely impact of a recession on coworking.
This included a brief discussion on the Coworking Google Group, which is an excellent resource for keeping up with coworking and coworking facilities.
A small majority of the people we got feedback from believe an economic downturn will be good for coworking. The most common reason given is rising unemployment and fewer traditional job opportunities will result in more coworkers and more demand for coworking spaces.
A second reason we heard is a recession will likely result in companies reducing office space to save money. As an alternative to company office space, employees will turn to coworking spaces for facilities and a social environment.
A sizable minority felt the overall impact of the recession would be negative. The most common reason given is there will be fewer opportunities for independent workers. A second reason is coworkers will cut their costs in part by moving back home, or to coffee shops and other free spaces.
We agree with the majority. In previous recessions small business formation increased. And today it is much cheaper and easier to start a small businesses or become an independent worker, contractor or consultant than it was in the past.
Coworking facilities provide low cost, on demand space for independent and affiliated workers. They also provide a social environment and a work community. These features will be attractive in a down economy.
At LaunchPad Coworking, we couldn't agree more. This post by Julie Gomoll offers that recession may actually be good for innovation and coworking.
http://blog.launchpadcoworking.com/2008/10/14/an-optimist-in-our-midst/
Posted by: Michael | October 30, 2008 at 02:58 PM
This is summed up nicely. Cubes&Crayons sees both similar opportunities and possible negative impacts, although I suspect the opportunities will win...but then I am an optimist.
Our thoughts...
http://cubes.typepad.com/blog/2008/10/coworking-and-the-global-economy-survival-mode.html
Posted by: Felicity at Cubes | October 30, 2008 at 03:41 PM
Great article. Coworking is the perfect way to stay connected with other professionals while also cutting costs in this tough economy. Coworking spaces provide a relaxing, creative & collabrative atmosphere. Our office business center in Chattanooga, TN is setting up a coworking space in the downtown business district. Find us on Twitter & Facebook. info@theconciergelevel.com
Posted by: allison | February 12, 2009 at 06:26 AM