Hive 4A: Coworking in Allentown

Elena Voonasis

What is Coworking?• Coworking is a relatively new phenomenon taking place

worldwide wherein independent workers come together to collaborate, increase productivity, make new contacts, and lower costs

• Most coworking spaces feature the following amenities:▫ WiFi▫ Printer/Scanner/Copier & Fax Machine▫ Coffee maker & Kitchenette▫ Conference Room with Presentation Equipment & Meeting Room▫ Receptionist & Reception Area▫ Flexible hours▫ The benefits of synergy and collaboration with the coworking

community

Who are Coworkers?

44%

13%

43%

Industry Breakdown

Web Developers and Designers

Public Relations/Marketing

Other (Journalists, Artists, Entrepreneurs, Consultants, etc.)

• Come from both urban and rural places and from around the world

• Tend to be independent contractors, consultants, writers/artists, freelancers, and owners of personal or microbusinesses

• Normally well educated and live near their coworking space

• May feel isolated working from home or feel they need a more professional work environment to meet with clients

Coworking Works!

• Survey data from coworking studies:▫66% said coworking

stimulated their creativity to a great extent

▫87% started a project with at least one member of their coworking space

▫43% found 1-3 helpful connections, another 43% found 4 or more helpful connections

57%34%

9%

Satisfaction with Coworking

Very Satisfied

Satisfied

Other

91% of coworkers were satisfied with

their experience!

Coworking in Allentown• Coworking spaces have started to form throughout

PA, with spaces in Lancaster and Philadelphia

• A temporary coworking space has been started to test the concept and gauge local interest▫ Each week has proven to be successful as new people continue

to try out coworking and are choosing to spend more time in the space. We’ve also seen the emergence of a core group who have steadily come each day it’s offered.

• Formation of hackerspace nights

• Construction and renovation of Hive 4A, the permanent coworking space, is nearing completion

Why does Allentown Need Coworking?• Coworking spurs entrepreneurial activity and represents

the modern age▫ More and more companies are moving towards hiring contingent

workers and less traditional full-time workers

▫ Less people are working in traditional office space and are looking for more flexible options

• Coworking can also cater to many different industries and many different people at once, as opposed to business incubation and other initiatives

• Less barriers to entry with coworking due to lower costs

• Other spaces, especially in Philadelphia and New York, have been extremely successful and the temporary coworking space continues to attract interest

The CompetitionHamilton Business

CenterThe Office Quarters

Hive 4a

Location Hamilton & 11th 1275 Glenlivet Drive

905 Harrison St. (The

Bridgeworks)

Size 985 to 25,000 GSF Non-specified shared office space

Flexible/Permanent desks, offices at 168 -250 sq. ft.

Amenities •Convenient Parking •24 hour access• Security•Internet Access •Meeting Rooms •Maintenance,•Fax/Copier •Landline •Receptionist

•Convenient Parking•Mailing Address•Access to Equipment (Fax, etc.)•Receptionist•Must pay extra to be able to work in office

•Convenient Parking•Mail Services•Fax/Copier•Internet Access•Presentation Space & Equipment•Reception•Refreshments•Community•Flexibility

Cost $15/GSF($1,230-31,250/Month)

$99-$299/Month $25-400/Month

Location, Location, Location

The Office Quarters

The Hamilton Business Center

Hive 4A

Marketing a Coworking SpaceFirst Contact Method

Marketing Strategies• Focus on social media and other

online sources▫ Fully utilize Facebook, Twitter,

various websites, blogs and local online press

▫ Create engaging, informative, and creative content

▫ Post updated videos and photos of Hive 4A as it’s in progress

• Traditional forms of advertising▫ Morning Call and print media▫ AEDC website▫ Brochures▫ Other organization’s websites

and material

Marketing Strategies• Get people into the space

through more traditional activities▫ Offer professional development

series or networking events in the space

• Reach out for support from different organizations who could benefit from the space as well▫ Have other organizations host

events in the space▫ Links to and from other

websites will increase visibility for both parties

▫ Market to local community colleges and adult education programs such as LCCC and the Wescoe School

Possible Marketing Initiatives• Host a logo design

contest for Hive 4A via Facebook and Twitter

• Host a business expo of all the Hive 4A businesses

• Once the permanent space is set up, offer trial days or discounts to members who find other members

• Require members to donate a few hours of service to local businesses and nonprofits

Marketing Coworking to Hispanics

•Emphasize the community aspects of coworking ▫Hispanics often work in family-owned businesses ▫Many Hispanics join community organizations▫Over half donate either their time or money to the

community•Emphasize opportunities to network and

develop new business and contacts•Focus on the infrastructure present in the

coworking space •Offer long and flexible hours

The Growing Hispanic Population

• Hispanics now account for 10% of the population in the Lehigh Valley

• Hispanics have had a growth rate of 392% from 1980-2000

• In Allentown 43% of the population identifies as Hispanic

• In 2002, 7.8% of Allentown businesses were Hispanic-owned (For PA the figure is 1.3%)

Latino Professionals By Non-U.S. Origin

Puerto Rico

Dominican Repub-lic

Nicaragua

Peru

Mexico

Cuba

Guatemala

El Salvador

Argentina

Bolivia

Colombia

17%

6%

4%

57% of Latino Professionals are of U.S. Origin

Challenges• Awareness

▫ Coworking while increasing in popularity is still not widely known

• Sustainability▫ How do we get coworkers to commit to the space on a long term

basis?• Location

▫ Coworkers can either drive or bike to Bridgeworks, public transportation is available but not incredibly convenient

▫ Coworkers list available lunch spots as one of their desires Need to promote local restaurants in the area

• Cost Structure▫ Initial price of $25/month may not be high enough

A higher price could increase both the financial and psychological commitment

• Flexibility▫ Hive 4A will need to consult members about what their needs

are overtime in terms of more permanent or flexible desk space

Conclusions

•Hive 4A will need the continued support of the AEDC and other organizations to keep garnering attention

•A combination of marketing through traditional media and online social media will be needed

•A specific marketing campaign to Hispanics might not be needed but outreach should still be made

•Hive 4A will have to educate the community about coworking in order for it to be successful

Acknowledgments •Special Thanks to:

▫Matthew Tuerk, AEDC▫Alvaro Díaz, HCC▫Eduardo Eichenwald, LVEDC▫Jeff Tintle, Thrive Media▫Marco Calderon, Calderon Photography▫Lewis Edwards, AEDC▫The AEDC

Bibliography•Coworking Europe 2010 Survey•Deskmag’s Global Coworking Survey•Intuit & Emergent Research’s 2020

Report•U.S. Census Bureau