The gig economy is in full swing. Freelancers, part-timers, and independent contractors (all variant names of the same type of position) are in a market brimming with opportunities, and many businesses have limited their full-time position availability in favor of these more cost-efficient, diversifiable workforce options. Regardless of how you feel about the long-term potential future of the gig economy, or the ethics of cutting full-time benefits, it’s a significant niche in our economy, and it warrants major environmental changes to keep it running at maximum efficiency.
One of the best additions, or enhancers for the gig economy could be co-ops and shared workspaces, which allow multiple freelancers to come together in a single, neutral office or general work environment (this could also be used by remote workers in full-time positions).
Why are these structures so important?
The Broad Spectrum of Co-Ops
There already exist a number of different “types” of co-ops, and this diversity lends some power to the concept in a general sense. There are pre-existing workspaces like NextSpace, where you can buy a day pass to work, crowd-based platforms like ShareDesk, and of course organizations like incubators, where entrepreneurs and workers can (more or less) freely come and go.
There’s no one specific model that must be used for a co-op, so long as it allows multiple independent contractors from multiple walks of life to work productively in an open, professional environment.
Economic Opportunities
The economic opportunities of a shared workspace can’t be ignored, both as a means of generating revenue for an owner or operator, and as a means of generating more wealth and job opportunities for an entire area. For example, a co-op owner could charge participants a monthly fee, almost like a gym membership to use the space, or offer day-passes that compensate owners for the expenses involved in keeping the doors open.
On a broader scale, co-ops could act much like startup incubators already do, providing economic incentives to entrepreneurs and micro-preneurs. This could encourage more people to go out on their own, creating new economic incentives for the area and eventually more jobs.
Networking Advantages
One of the biggest opportunities for participants is networking, in a variety of different forms:
- New clients. It’s certainly possible that you’ll meet new clients while participating in a shared workspace—and conversely, you might find people whose services you need for your own business or personal life. All manner of people will walk through these doors, giving you ample sales opportunities (especially when you start factoring in contacts of contacts, and higher-degree connections).
- New partners and teammates. If you’re trying to start your own business, this is a perfect place to find people in a similar position. For example, you could easily find someone whose skillsets complement or enhance your own, and partner up to build an enterprise that keeps both of you busy.
- Mentors and advisors. Mentors and advisors (and maybe even investors) would see a workspace like this as an opportunity to share their knowledge. Some co-ops may even develop specifically to pair mentors with inexperienced entrepreneurs. This would facilitate higher growth, and provide additional motivation for attracting new workers.
- Collaboration and shared work. Even if not in a partnership, participants can work together on projects. Work spillover and balancing is also a consideration here; people of a similar skillset may hedge their bets with one another by offering to trade or share assignments.
The Safety Net Effect
Shared workspaces also have a kind of “safety net” effect for prospective entrepreneurs or workers considering going off on their own. First, it demands less upfront investment from participants; rather than needing to invest in your own office space or try to establish a home office, the free or cheap option of participating in a collective workspace requires fewer initial resources. Second, it serves as a fallback if you aren’t confident in your ability to attract new clients, or if your current workload is volatile. If you run out of work, there could be plenty of other people to share some with you.
Socialization and Productivity
Finally, let’s not discount the importance of socialization during the workday. Working from home can get lonely, and fast; a shared workspace gives you the opportunity to engage with others in a similar position, helping to keep your morale high. Leaving the home to go to an office also may have a marginal effect on your overall productivity if you’re the type to whom a shared workspace appeals. For millions of workers, the social and productivity benefits alone would make a co-op worth considering.
Who’s Going to Start These Up?
I’ve established the case for why we need more co-ops and shared workspaces in this gig-based economy. The gig economy is a positive one, capable of encouraging more entrepreneurship and providing more job opportunities for determined professionals (forgoing the “full time benefits” dilemma for now), but it needs these structures to keep moving at full efficiency.
The main problem, then, is who’s going to create more of these shared workspaces? Should they be pay-to-participate? Should they be for-profit or non-profit? These aren’t easy questions to answer, but there are feasible options—converting old workspaces (or factories) that are going unused, sponsoring a crowdfunding-based initiative for multiple freelancers, and splitting residence with local business owners are just a few. These are topics for exploration in a future post.
