Coworking Spaces and Start-ups: Empirical Evidence from a Product Market Competition and Life Cycle Perspective
39 Pages Posted: 8 Feb 2020 Last revised: 7 Dec 2020
Date Written: November 11, 2020
We explore how coworking spaces are involved in the entrepreneurial ecosystem of start-ups contingent on the lifecycle stage of the firm and the coworking space market itself. Our study is based on a hand-collected detailed sample of coworking spaces in the seven largest regions in Germany. We find a hump-shaped relation of coworking space supply and founding activity, reflecting maturity effects of the corresponding coworking space market. In addition, we find a positive relation between the coworking space supply and funding activity of start-ups. A European study with WeWork data supports our findings and a difference-in-differences approach mitigates endogeneity concerns.
Keywords: coworking space, start-ups, entrepreneurial finance, entrepreneurial ecosystem, venture capital
JEL Classification: M13, R11, R33, E22, G32
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