The economic impact of coworking on small towns: George case study

when kanwerk first opened in george, local skeptics questioned whether a coworking space could succeed in a regional town or contribute meaningfully to the local economy. traditional thinking suggested that professional workspace demand was insufficient and that any economic impact would be minimal compared to established industries.

george’s experience demonstrates how coworking spaces can serve as economic development catalysts in smaller communities, creating multiplier effects that benefit far more than just workspace members while positioning towns for knowledge economy growth.

Direct economic contributions and spending patterns

Member spending and local economic circulation

coworking members contribute significantly to local economies through accommodation, dining, services, retail, and recreation spending that might otherwise flow to larger metropolitan markets.

accommodation spending by visiting members and relocating nomads provides direct revenue to local guesthouses, hotels, and rental property owners. many members transition from short-term accommodation to longer-term rental arrangements as they establish george presence.

dining and entertainment spending supports local restaurants, cafes, bars, and cultural venues. coworking members often have higher disposable income than average residents and frequently dine out, attend events, and support local entertainment businesses.

professional services consumption including banking, accounting, legal, and consulting services provides revenue to local service providers while demonstrating demand for sophisticated professional services in regional markets.

retail spending on everything from office supplies to recreational equipment supports local businesses while reducing economic leakage to online retailers or metropolitan shopping centers.

Employment creation and skills development

coworking spaces create direct employment through facility management, community coordination, event organisation, and member services. these positions often require skills that contribute to local human capital development.

indirect employment creation occurs as coworking members hire local service providers, contractors, assistants, and collaborators. successful coworking members often expand operations and create additional local employment opportunities.

skills development through workshops, training programs, and knowledge sharing raises local skill levels and creates more valuable human capital that attracts additional business investment and economic development.

mentorship and business development support helps local entrepreneurs develop viable businesses that create employment and economic activity beyond initial coworking space impact.

freelance and consulting opportunities emerge as coworking members connect with local businesses needing specialised expertise, creating income opportunities for local professionals while addressing business development needs.

Entrepreneurship stimulation and business incubation

New venture creation and business development

coworking environments significantly increase entrepreneurship rates among members. research shows 35-45% of coworking members launch new ventures within two years, far higher than general population entrepreneurship rates.

business incubation through peer support, mentorship access, and collaborative problem-solving helps new ventures overcome early challenges and achieve sustainability. the community approach to business development increases startup success rates.

access to professional networks, potential customers, and business partners through coworking communities reduces barriers to business development and provides market validation for new products and services.

skill sharing and expertise access enables entrepreneurs to develop capabilities they couldn’t afford to hire, reducing startup costs while improving business quality and competitive positioning.

collaborative projects often evolve into formal business partnerships, joint ventures, or business expansion opportunities that create additional economic activity and employment.

Investment attraction and capital formation

coworking spaces attract external investment to local economies as successful members expand operations, bring in business partners, or potential funding for growth. g angel investors and business partners do visit smaller and local communities to evaluate opportunities, that potentially brings external capital and expertise that will necessarily benefit the broader business ecosystem development beyond specific investments.

business expansion by successful coworking members will naturally create demand for larger office space, additional services, and expanded operations that generate ongoing economic activity and employment.

franchise and business replication opportunities emerge as successful local businesses develop models that can be replicated elsewhere, creating intellectual property value and ongoing revenue streams.

property investment by relocated coworking members and visiting professionals creates demand for residential and commercial real estate that supports property values and construction activity.

Tourism and visitor economy integration

Business tourism and professional travel

coworking spaces attract business tourists including consultants, remote workers, digital nomads, and professionals who extend stays beyond traditional tourism patterns. these visitors contribute significantly to local accommodation and service economies.

meeting and conference hosting capabilities attract business events that bring additional visitors and spending to local economies. professional-grade facilities enable local businesses to host clients and events locally rather than traveling to metropolitan areas.

workspace tourism includes professionals specifically seeking coworking experiences in lifestyle destinations like george. this niche market brings high-value visitors who stay longer and spend more than traditional tourists.

business retreat and workation market development creates opportunities for accommodation providers, activity operators, and service providers to serve professionals seeking work-life integration experiences.

professional development tourism through workshops, training programs, and educational events attracts participants who contribute to visitor economy while developing local skills and business networks.

Integration with existing tourism infrastructure

coworking members often explore local attractions, participate in adventure tourism, and recommend experiences to professional networks, creating marketing value for local tourism operators that extends beyond direct spending.

seasonal business smoothing occurs as coworking members provide more consistent year-round economic activity compared to seasonal tourism patterns. this stability benefits local businesses during traditional off-peak periods.

Real estate and property development impact

Commercial property demand and development

property value enhancement occurs in areas near successful coworking spaces as business activity, foot traffic, and professional presence increase desirability for both commercial and residential properties.

adaptive reuse of existing buildings for coworking purposes demonstrates development potential and creates examples for other property owners considering commercial development or redevelopment projects.

business district revitalisation attracts complementary businesses, create foot traffic, and demonstrate economic viability that encourages additional business investment.

infrastructure improvement demands including better internet connectivity, parking facilities, and public amenities benefit entire business districts while supporting coworking space requirements.

Residential market impacts

professional attraction to communities with coworking infrastructure creates demand for quality residential properties from educated, high-income professionals seeking lifestyle benefits with professional infrastructure access.

neighborhood improvement occurs as professional residents invest in property improvements, support local businesses, and contribute to community activities that enhance overall neighborhood quality and property values.

rental market development provides opportunities for property investors to serve short-term and medium-term accommodation needs of visiting coworking members and relocating professionals.

demographic diversification through attraction of younger professionals, remote workers, and entrepreneurs creates more balanced community age and income profiles that support diverse business development.

Policy implications and municipal development

Economic development strategy integration

coworking spaces demonstrate successful economic diversification strategies that reduce dependence on traditional industries while building knowledge economy capabilities that position communities for future growth.

as the coworking space continues to grow the impact on municipal economic development policies will soon be able to leverage the coworking success to attract additional professional services, technology companies, and knowledge-based businesses that create high-value employment.

skills development and education planning too will be able to align with coworking community needs and capabilities to create comprehensive professional development ecosystems that benefit entire communities.

Broader economic ecosystem development

supply chain development start to occur as successful coworking businesses create demand for local suppliers, service providers, and business support services, thus the entire business ecosystem is strengthened.

educational partnerships with local institutions create opportunities for skills development, research collaboration, and student internships that benefit both coworking businesses and educational institutions.

cultural and lifestyle enhancement through coworking community activities, events, and cultural contributions creates more attractive communities that appeal to businesses, residents, and visitors.

george’s coworking experience demonstrates that these spaces can serve as postitive economic development tools for smaller communities when integrated thoughtfully into broader economic development strategies and supported by appropriate infrastructure and community development initiatives.

interested in contributing to george’s growing economic ecosystem? explore how kanwerk’s community-centered approach creates opportunities for both individual success and collective economic development that benefits our entire region.