The Co-Working Space Blueprint: A Case Study on the Impact of Co-Working Spaces on Entrepreneurship Date: 24 June, 2016 Supervisor: Prof. Roel van der Voort Student: Shahar Graff Student Number: 11085878 Education: MSc Business Administration, Entrepreneurship & Innovation Track Institution: Faculty of Economics & Business, University of Amsterdam STATEMENT OF ORIGINALITY This document is written by Shahar Graff who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents. ABSTRACT Purpose: Understanding the role of the co-working space in the entrepreneurial process and determining which components of the co-working spaces provide value to the entrepreneurial members. Design Approach: Mixed case study, based on nine semi-structured interviews. Units of analysis were the managers of the co-working spaces and their venture tenants. Sample was chosen using no-probability sampling. The research was conducted in both Amsterdam, the Netherlands and Tel Aviv, Israel. Findings: The areas of most value to the studied entrepreneurs are an impressive design and atmosphere, an extensive professional network and a dining area for socialization among members. Additionally, various components of the business model were analyzed, providing an understanding on the contribution to the co-working space members. Research Limitations: The sample size was limited, which does not permit generalizations. Yet the findings show the contribution of various factors that may be further researched and analyzed. Originality: The co-working phenomenon has appeared and grown in recent years and has not yet been thoroughly researched. Even more so, little empirical evidence places co-working spaces in the context of entrepreneurship and the entrepreneurial ecosystem. Additionally, this study was done within two cities, each with differently developed entrepreneurial ecosystems. In addition to providing more variation to the findings, a number of cultural differences seemed to arise. Keywords: Co-working spaces, business incubation, entrepreneurship ACKNOWLEDGEMENTS Foremost, I would like to express my sincere gratitude to my supervisor Dr. Roel van der Voort for his guidance throughout the entire process of writing this Master thesis. I would also like to thank each of the participants that took the time to meet with me and provide me with valuable information for this study. TABLE OF CONTENTS Abbreviations ............................................................................................................................. 7 List of Tables & Figures ............................................................................................................. 7 1. Introduction ............................................................................................................................ 8 1.1 Overview .......................................................................................................................... 8 1.2 Relevance of Research .................................................................................................... 9 1.3 Outline .............................................................................................................................. 9 2. Literature Review ..................................................................................................................10 2.1 Introduction to Entrepreneurship ......................................................................................10 2.1.1 The Entrepreneurial Ecosystem ....................................................................................10 2.1.2 Definition of an Entrepreneur: .......................................................................................14 2.2 Business Incubation ............................................................................................................16 2.2.1 Historical Background ...................................................................................................16 2.2.2 The Role .......................................................................................................................17 2.3 Co-Working Spaces ............................................................................................................19 2.3.1 Introduction to Co-Working Spaces ..............................................................................19 2.3.2 Characteristics of Co-Working Spaces..........................................................................20 I Professional Services ....................................................................................................21 II Professional Networks .................................................................................................21 III Physical Environment ..................................................................................................25 3. Methodology .........................................................................................................................26 3.1 Research Design .............................................................................................................26 3.2 Research Sample ............................................................................................................28 3.2.1 Selection of Co-Working Spaces ...............................................................................29 3.2.2 Selection of Tenant Ventures ....................................................................................30 3.3 Data Collection ................................................................................................................31 3.4 Data Analysis ..................................................................................................................34 4. Case Context ........................................................................................................................35 4.1 Entrepreneurial Ecosystem of the Netherlands ................................................................35 4.2 Entrepreneurial Ecosystem of Israel ................................................................................38 4.3 Background On Selected Co-Working Spaces ................................................................40 4.3.1 WeWork ....................................................................................................................40 4.3.2 B. Amsterdam ...........................................................................................................42 4.3.3 SOSA (South of Salame) ..........................................................................................42 5. Case Analysis & Findings......................................................................................................44 5.1 Determining Contribution of Professional Services ..........................................................45 5.1.1 Business Services .....................................................................................................45 5.1.2 Venture Efficiency .....................................................................................................47 5.1.3 Benefits & Discounts .................................................................................................47 5.1.4 Flexible Membership .................................................................................................48 5.2 Determining Contribution of the Professional Network .....................................................48 5.2.1. Member Interaction. .................................................................................................49 5.2.2 External Contacts. .....................................................................................................53 5.2.3 Tenant Mix. ...............................................................................................................54 5.2.4 Establishing Legitimacy .............................................................................................55 5.2.5 Events. ......................................................................................................................56 5.3 Determining Contribution of the Physical Environment ....................................................57 5.3.1 Space Layout ............................................................................................................58 5.3.2 Dining Area ...............................................................................................................58 5.3.3 Design & Atmosphere ...............................................................................................59 5.4 Leaving the Co-Working Space .......................................................................................59 5.4 Identifying Cultural Gaps .................................................................................................60 5.5 Summary .........................................................................................................................61 6. Discussion ............................................................................................................................61 7. References ...........................................................................................................................64