Business Incubators Versus Coworking Spaces

An interesting trend we're seeing is business incubators offering coworking options, and at the same time coworking facilities are offering incubator-like services.

The overlap is being driven by the growing number of early stage companies that are boostrapping, and/or distributed, and/or virtual, and/or outsource almost everything.  These firms do not need or want to incur the costs associated with traditional office space. 

They often also don't need (or want to pay for) the full range of services traditionally offered by business incubators. 

Business incubators have noticed this shift and are starting to offer "incubator-light" spaces that look a lot like coworking spaces.  An example is Seedspace, part of Georgia Tech's Advanced Technology Development Center. 

At the same time, coworking facilities are catering to early stage companies and offering incubator-like services.  An example is Parisoma.  You simply can't read their blog without thinking it is an incubator. 

The Hub is another example of a coworking space that is also an incubator - or an incubator that is also a coworking space.  The differences and definitions of these types of spaces are becoming increasingly blurred. 

Comments

[Alan Morley]

Great post!!! Very informative and helpful to people like us. Thanks for sharing this post for everyone. I will share this link to my other friends.

[MS Small Business Resources]

This would be a great way to save also. Thanks for sharing the links. Kudos to you!

[steve]

Alex: I hadn't thought about the differences this way, but I agree. Thanks for the insight.

Steve

[Alexknowshtml]

I think there's one fundamental difference between coworking and incubation: needs.

Coworking is designed to facilitate something that's already in motion: work.

Incubation is designed to facilitate something that needs something in order to work: company inception and/or growth.

I've noticed a pattern that incubator-like activity tends to attract people that *need* far more than they have to give...and then when they're done getting what they need, they split.

In contrast, coworking (even with incubation-like elements) attracts people who have more than they need. They contribute more to the ecosystem they are participating in, and tend to stick around longer.

[issue tracking]

both of these seem great, particularly for freelancers or those who travel frequently for work as sometimes being alone can really stifle your motivation or creativity.