Coworking spaces are frequently evaluated by metrics that are easily quantifiable: desk occupancy rates, revenue generation, and membership renewal statistics. However, these figures represent only a sliver of their true value. As remote and hybrid work models redefine professional interactions, the spontaneous conversations, valuable introductions, and robust relationships that once flourished organically in traditional office environments now necessitate intentionally designed spaces to foster them. This is precisely where coworking transcends its function as a mere workspace, actively creating the fertile ground for social capital to emerge. Social capital, defined as the value embedded within relationships and networks, empowers individuals to access knowledge, support, and opportunities, thereby fueling innovation and economic development.
Recent research from the University of Bath is shedding crucial light on this often-overlooked aspect of coworking. Allwork.Space engaged in a detailed discussion with Felicia Fai, Professor of Innovation and Regional Growth, and Phil Tomlinson, Professor of Industrial Strategy and Regional Development. Both professors, who jointly direct the Centre for Governance, Regions and Industrial Strategy (CGRIS) in the UK, have conducted extensive research, alongside their colleague Dr. Mariachiara Barzotto, that robustly supports the assertion that coworking spaces act as significant catalysts for social capital. Their findings indicate that this social capital, in turn, drives innovation, facilitates skills development, and stimulates broader economic activity.
Professor Fai articulates social capital as "a resource that individuals can use to support the growth of their interests." She simplifies this concept by likening it to the adage "it’s not what you know, it’s who you know." This refers to the interconnectedness of personal networks that grant access to crucial knowledge, unwavering support, and advantageous opportunities. Crucially, Fai emphasizes that the inherent value of these networks is contingent not merely on their existence, but on their depth and resilience. Relationships forged through trust, shared experiences, and authentic connections are the true bedrock of valuable social capital.
Coworking as a Strategic Incubator for Social Capital
The prevailing notion that simply sharing a physical space automatically cultivates social capital is a misconception that Fai and Tomlinson are keen to address. "A physical space, in and of itself, does not create social capital," Fai states unequivocally. Instead, these environments serve as crucial enablers, providing the optimal conditions for relationships to blossom. Within coworking settings, this nurturing process is often facilitated through deliberate community-building initiatives. These can include structured introductions, curated events, collaborative activities, and ample opportunities for informal interactions. Over time, these nascent connections can mature into robust networks, generating tangible business opportunities and providing invaluable personal support systems.
Professor Tomlinson elaborates on why coworking spaces are uniquely positioned to cultivate the conditions necessary for social capital to thrive: "Social capital is critical for unlocking the knowledge-sharing benefits of coworking and promoting innovation. Simply collocating people in the same physical environment is not enough – what matters is when coworkers establish meaningful social relationships (among themselves) that enable trust, reciprocity, knowledge exchange and/or idea experimentation and access to wider professional and social networks."
The distinction drawn by Fai and Tomlinson is critical: coworking’s power lies not in mere physical proximity, but in the intentional cultivation of environments where genuine relationships can develop. This necessitates a proactive approach from coworking operators and community managers, who play a pivotal role in orchestrating interactions and experiences that allow social capital to flourish. Their function extends beyond mere facility management to that of social architects.
The Genesis of Social Capital in the Coworking Movement
The foundational principles of social capital have been intrinsically woven into the fabric of coworking since its inception. Long before the concept became synonymous with flexible office solutions and subscription models, coworking was rooted in a more elemental idea: that collective value is generated through the sharing of knowledge, skills, and opportunities.
This ethos was eloquently captured by Bernard DeKoven, who coined the term "coworking" in 1999. DeKoven envisioned a paradigm shift in how people worked, advocating for an approach centered on equality, active participation, and collaboration, a stark contrast to the rigid hierarchies of traditional workplaces. The emphasis was never on the solitary desk, but on fostering an environment conducive to the exchange of expertise and resources. Coworking spaces, therefore, were conceived not merely as places to conduct business, but as vibrant communities where introductions, expert advice, and collaborative endeavors held as much significance as the physical infrastructure itself.
Early examples of this philosophy in action include Berlin’s C-Base, established in the 1990s. This pioneering initiative brought together a collective of computer enthusiasts who pooled their technical knowledge and equipment. A more contemporary illustration is Seats2meet, a Dutch venture launched in 2006. Seats2meet innovatively built its coworking model around the concept of enabling members to access workspace by contributing their knowledge and a willingness to assist others, rather than through traditional monetary payment for desk space. Seats2meet serves as a compelling real-world testament to how investing in social relationships can yield both community enrichment and economic returns.
The Art of Intentionally Designing Social Capital
A significant misconception surrounding coworking is the belief that shared physical space inherently leads to community formation. Research consistently suggests otherwise. While a shared workspace provides the opportune setting for connection, the true germination of social capital occurs when individuals are actively encouraged to participate and engage with one another.
Tomlinson articulates this point with clarity: "The role of coworking is less about providing physical infrastructure (e.g., desks, monitors and Wi-Fi), and more about social infrastructure and fostering social capital. Genuine coworking spaces typically do this through deliberate community-building activities – such as ‘lunch and learn’ type events – that encourage social interaction and networking among members. The key role here is often played by the owner/manager or administrator who initiates such events and facilitates such interactions."
Cat Johnson, a recognized authority in the coworking space and founder of Coworking Convos and the Coworking Creators Lab, has extensively documented the critical role of intentional community building in fostering social capital within these environments. In her writings for Allwork.Space, Johnson advocates for the deliberate cultivation of strong communities through concrete actions. These include strategically introducing members with complementary skill sets, creating dedicated platforms for knowledge exchange, and fostering a pervasive culture of generosity, active participation, and mutual support.
This multifaceted process can be effectively understood through three interconnected dimensions of social capital, each building upon the preceding one:
- Structural Social Capital: This foundational layer focuses on establishing the networks and connections between individuals. It’s about creating the framework for interaction.
- Relational Social Capital: Building upon the structural framework, this dimension strengthens connections through the development of trust, reciprocity, and shared values. It’s about the quality and depth of relationships.
- Cognitive Social Capital: This advanced stage fosters a shared understanding, a common language, and a unified sense of purpose, which ultimately enables collective action and shared goals. It’s about mutual understanding and shared vision.
Coworking community managers are instrumental in facilitating the conditions necessary for all three dimensions to emerge and thrive. Collectively, these dimensions contribute to the development of a cohesive workspace where knowledge exchange, collaborative innovation, and valuable professional opportunities can materialize between individuals and organizations.
Transforming Social Interactions into Tangible Economic Assets
The widespread adoption of remote and hybrid work models has undoubtedly brought welcome flexibility to many professionals. However, this shift has also led to a reduction in the informal interactions that historically served as fertile ground for collaboration, continuous learning, and professional advancement. Professor Fai posits that this trend amplifies the importance of intentionally designed coworking spaces, while also sounding a note of caution: "Coworking spaces can facilitate the creation of social capital among their members, but it has to be purposeful… providers should be honest about the lack of intentional community creation instead of riding a marketing ‘trend’ with the coworking label."
Fai argues that a coworking space’s unique local identity is not an incidental byproduct but an earned distinction. As social capital flourishes among its members, it organically shapes a distinct culture that imbues the space with its own community identity. This identity can become so compelling that newcomers may find their "tribe" and choose to remain, while others may move on. When a coworking space actively integrates itself into its surrounding locale, it transcends its role as a mere workspace, evolving into a place that embodies the identity of its locality and fosters a profound sense of belonging among its members. In instances where membership is predominantly drawn from the local community, this relationship becomes mutually beneficial. The coworking space transforms into what Fai terms an "anchor organization"—a stable entity that helps to anchor other businesses within the locality, thereby strengthening the local economy.
The challenge, however, lies in quantifying this intangible value. Trust and informal collaboration typically emerge from day-to-day interactions, leaving behind no easily quantifiable data trails. This inherent difficulty in measurement makes the true economic value of coworking spaces challenging to ascertain. Professor Tomlinson echoes this sentiment: "there are few metrics on the activities and economic outcomes arising within and from coworking spaces… elements such as trust and knowledge sharing are notoriously difficult to quantify."
Despite these measurement challenges, the patterns revealed by research are remarkably consistent. Coworking can significantly bolster local economies through increased foot traffic, the enhancement of skills within the workforce, the revitalization of underutilized urban spaces, and the forging of stronger connections between individuals and businesses. In this context, Tomlinson asserts that coworking spaces "can play a key role in the local ecosystem," possessing the potential to "re-invigorate local economies especially in provincial towns, post-industrial cities, and ‘left behind’ rural and coastal areas."
Ultimately, the enduring value of coworking is not derived from the physical space itself, but from the opportunities and connections that the space facilitates. Through the cultivation of social capital, everyday encounters can evolve into trusted relationships, these relationships can blossom into valuable opportunities, and these opportunities can, in turn, catalyze the innovations and economic activities that strengthen communities and drive regional growth.
