COWORKING BY THE NUMBERS

Steve King Emergent Research

AGENDA:

• NUMBERS • DRIVERS • OUTLOOK

0

500

1000

1500

2000

2500

3000

3500

2006 2008 2010 2012 2013

Number of Global Coworking Spaces (narrow coworking space definition)

Sources: DeskMag, Emergent Research

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2006 2008 2010 2012 2013

Number of Global Coworking Space Members (narrow coworking space definition)

Sources: DeskMag, Emergent Research

0

20

40

60

80

100

120

140

160

180

2008 2013

Number of Seed/Startup Accelerators (U.S)

Sources: European Seed Accelerator Ecosystem; Accelerating Startups – The Seed Accelerator Phenomenon

0

200

400

600

800

1000

1200

1400

2008 2013

Number of Business Incubators (U.S.)

Source: National Business Incubation Association

0

500

1000

1500

2000

2500

2008 2013

Number of Office Business Centers (U.S.)

Source: Global Workspace Association

0 20 40 60 80

100 120 140 160 180 200

2008 2013

Number of Makerspaces (U.S.)

Source: Make Magazine

0

50

100

150

200

250

300

350

400

2008 2013

Number of Shared Commercial Kitchens (U.S., membership based)

Source: Culinary Incubator

0

2

4

6

8

10

12

14

16

18

2008 2013

Number of Shared Biolabs (U.S., membership based)

Source: Emergent Research

• Volatility • Uncertainty • Complexity • Ambiguity

• Agility • Flexibility • Avoid Fixed Costs • Collaboration

• Technology • Globalization • Economic Shifts

It’s a Turbulent World

0

500000

1000000

1500000

2000000

2500000

1998 2012

Microsoft Apple Google

Revenue Per Employee

The Rise of the Extended Workforce and the Connected Economy

• Larger firms building platforms and ecosystems to attract partners

• Smaller firms and solopreneurs specializing, finding niches and developing their own networks and ecosystems

• Growing ecosystems of companies and technologies enabling cross firm collaboration and the use of expanded supply chains

Platforms, Ecosystems and Networks

0

20

40

60

80

100

Growth in Employer and Single Person Firms Percentage Change – 1992 to 2012

Single Person

Less Than 500 Employees

500 to 10,000 Employees

10,000+ Employees

90%

21% 15%

50%

Source: Small Business Administration

Barbell Industrial Structures

21

21.5

22

22.5

23

2001 2011 0

2

4

6

8

1991 2001 2011

Avg. Number of Employees New Businesses

Avg. Number of Employees Small Business Sector

Source: BLS Monthly Labor Review March 2012

Small Businesses Also Moving to the Extended Workforce and the Connected Economy

Independent Workers Too

In 2012, U.S. Independent Workers:

• Spent $96 billion hiring the equivalent of 2.3 million FT workers via contract hiring

• Spent $150 billion in non-payroll and overhead expenses

Networking Key to Connected Economy Success

Factor % 8,9,10 Mean Score

Professional/technical expertise in field of work

92% 9.24

Personal Attributes 90% 9.09

Networking skills 59% 7.30

IT skills 48% 6.82

Admin skills 40% 6.2

Sales/Marketing 37% 5.78

Successful Solopreneurs Key Success Factors

Networking = Sales in the Connected Economy

Successful Solopreneurs How They Get Work

Factor % 4,5 Mean Score

Word of Mouth 82% 4.24

Former Employer 47% 2.8

Staffing Agency/Broker 15% 1.38

Online Job Marketplace 12% 1.33

Social Media 6% .78

Advertising 3% .57

Coworking: The Next 5 Years

• Trends and Shifts Favor Coworking • Social • Demographic • Economic • Technology

Coworking: The Next 5 Years

• Challenges • Awareness • Value Proposition • Substitutes • Competition • Business model

0

2000

4000

6000

8000

10000

12000

14000

2013 2014 2015 2016 2017 2018

Coworking Facility Forecast

2013 2014 2015 2016 2017 2018

Coworking Member Forecast

200k

400k

600k

800k

1000k

Number of

Members

QUESTIONS