HELIX2018 PAPER

Coworking and the Generation of Employment and Income Milton Carlos Farina¹, Alvaro Francisco Fernandes Neto¹, Antonio Aparecido de Carvalho¹, Davi de França Berne¹ ¹ Universidade de São Caetano do Sul – USCS, Brazil (milton.farina, alvaro.fernandes, antonio.carvalho, davi.berne@uscs.edu.br) Abstract. Coworking spaces have been growing in Brazil, due to the search for cost reduction, collaborative work, job and income generation. The common space utilizes by companies allow the shared use of resources, ideas and services. The aim of this research was to identify the elements for a Coworking space to create an innovative and entrepreneurial environment conducive to the generation of jobs and income. The research was qualitative phenomenological, with the proposal to describe the experience lived by coworkers in what concerns the identification of the fundamental elements in a space of services that allow innovation and business development. Interviews were conducted with representatives of five coworking spaces and the analyses of research data identified that the spaces of coworking provide the innovation when they offer spaces that allow the collaborative work, thus contributing to the generation of employment and income. The incentive to the coworkers to participate of the events that happen in the coworking space deepens the relationship between them and bring possibilities of solutions to their business. Keywords: Coworking Spaces; Employment, Income 1 Introduction Munhoz et al. [1] state that in the coworking spaces there is a sharing of ideas, resources, and services among the participants, factors that in addition to the reduction of costs bring the collaborative character, allowing a stimulus for the formation of partnerships. Petch [2] describes that proximity has emerged as a key factor in coworking since it allows sharing of resources and also, through the physical arrangement of space, that facilitates contact, which in turn increases collaboration. This contributes to the development of links of interactions that can lead to innovation. The present research focuses on the following question: What are the fundamental elements for a coworking space to create an innovative and entrepreneurial environment that can lead to the generation of jobs and income based on the premises of Capdevila [3]? The objective was to identify the fundamental elements that a coworking space has to encourage innovation and the entrepreneurial character among the participants contributing to the generation of employment and income. 2 In order to achieve this goal, the research made use of the Capdevila proposal [3], which brings the existence of four main elements for the coworking space: 1) Place: the chosen place must possess the appropriate resources and conditions that make possible the collaborative work ; 2) Space: it is the element that is linked to the group's cognitive approach, which allows the individual interests to become complementary; 3) Events: it is the variable that allows the members of a shared space to participate in congress, internal meetings, or specific activities; and 4) Projects: these are resources that arise from the development and integration of the participants and the relationship with the external community. The study is justified because, according to the census of Coworking Brazil [4], released in March 2018, coworking spaces showed growth of 114%. Compared to in relation to the 2016, were 378 spaces and in 2017 the number increased to 810 spaces. The research show that the spaces offer 56 thousand workstations, were moved in 2016 the value of R$82 million and generated 2.326 direct jobs and 1.174 indirect jobs. The reduction of jobs from 2015 can find in spaces of coworking contribution for generating employment and income. The research can provide theoretical content that allows other spaces of coworking to be used to increase the generation of employment and income as well as the adoption of publics policies that can accelerate the generation of employment and income. 2 Theoretical Background 2.1 Coworking According to Koevering [5], the five core values that reflect the philosophy of a coworking are: 1) Collaboration: willingness to cooperate with others to create shared value; 2) Openness: free sharing of ideas, information and people; 3) Community: a group with a common purpose and shared thoughts; 4) Accessibility: coworking spaces are accessible, socially and economically, for each type of worker and 5) Sustainability: resources are used together, which brings economic and ecological benefits. In Santos’ view [6], coworking consists of spaces offered by entrepreneurs to other entrepreneurs, professionals and people from diverse origins. This new element is differentiated from the traditional context, since space is used collectively, without the presence of bosses, surveillance or hierarches, ruled by values laded by a collaborative lifestyle. According to Capdevila [3], coworking spaces (CWS) act as intermediaries between creative individuals and innovative companies, and there are several types of coworking spaces studied according to their characteristics of innovation: a) First type of coworking space: no innovative community can be identified; b) Second type of coworking space: there is a certain degree of collaboration among members who develop innovative collective projects that lead to the emergence of a sense of community; and c) Third type of coworking space: it is the most innovative due to the emergence of a highly innovative community. 3 The creative economy involves the creation of products, effective production and distribution. Wünsch ([7]reports that knowledge, technology and innovation form the tripod that drives the generation of employment and income, as it promotes the development of new products or innovative services. 3 Methodology The primary data were obtained from interviews with partners, owners of the coworking spaces located in the cities of São Paulo and São Caetano do Sul. This research is qualitative with a phenomenological methodology, which according to Ribeiro [8], p. 68, is "the doctrine that intellect bring immediately and absolutely a certainty about the essence of things” that means phenomenology brings the knowledge that people have about things”. The focus was to identify the fundamental elements for the creation of innovative environment offered by the coworking spaces, following the premises of Capdevila [3], regarding the degree of innovation. The type of research was phenomenological and according to Gil [9] can be used in the administrative area to research work satisfaction, or membership in an organization. Five coworking spaces were searched, four of them did not authorize the disclosure of their names, henceforth they will be called coworkings A, B, C and D. The Cube space authorized the disclosure.The research question was: "What are the fundamental elements for a coworking space to create an innovative and entrepreneurial environment conducive to the generation of jobs and income, based on the premisses of Capdevila [3]?” The script of the interviews was based on questions that sought to understand the predominant motives that cause people and companies to seek shared spaces. The research also sought to understand how the relationship between residents of shared spaces is, how shared spaces contribute to the innovation process and as a consequence if there is a contribution to the generation of employment and income. 4 Presentation and Analysis of Results Based on the interviews the results are presented and analyzed for each coworking space. Coworking A Located in a commercial building in the city center of São Caetano in the State of São Paulo. The interview with the owner partner showed that the main focus of the space is to contribute to small businesses and microentrepreneurs participating in a space that allows cost reduction and mainly provides networking among its participants. THE, the space offers training and events where it is possible to information exchange. Average length of stay for coworkers is up to six months. According to the premises of Capdevila [3], this space belongs to the second type of coworking space, where there is a certain degree of collaboration between participants that can lead to creativity and innovation. 4 The strengths raised in this space of shared offices are the strengthening of networks of relationship and cooperation in projects that bring new products and mainly bring generation of employment and income. Coworking B Located in the city of São Caetano in a commercial building, which offers auditorium and space for coffee. The interviewee was the manager of the space who reported that the demand for shared space increased, mainly due to the need that professionals and microentrepreneurs have to reduce costs and to increase their relationship network also the relationship network. The space also focuses on the events that unite people from different areas of activity, generating the possibility of merging business and ideas. The integration between coworkers occurs in the events that the direction of space promotes. In relation to the creation of an environment that promotes creativity and innovation, the interviewee affirms that many ideas arise mainly in the events and that there is a collaborative work among the participants. It was possible to identify the concern that space has like with micro entrepreneurs, since resident coworkers or visitors are mostly micro entrepreneurs who are in the process of starting a business, are looking for reduced costs and need to strengthen relationships that can add value to the business. This coworking space is also in the second type, which according to Capdevila [3], offers a certain degree of collaboration that allows the generation of creativity and innovation. In this shared space the focus is on offering participation in events with the intention of uniting people from different areas of activity, providing the possibility of merging business and ideas. Coworking C Located in Vila Olimpia, in the city of São Paulo, it has a direct relationship with Cubo Coworking, considering that it is the manager of this. He was the pioneer in Coworkings spaces in Brazil, with the inauguration in 2012. The interviewee reported that the focus of the coworkers is the sharing of ideas, that the space offers from various events including the presence of coworkers from other spaces of coworking. He also informed that the area of coexistence that the space offers facilitates the exchange of information. In the interview were reported cases of coworkers who launched new products and services in the market. The space hosts hundreds of companies and the focus is to collaborate on creating new business. There is also the offer of events, especially those of technology and entrepreneurial culture, is one of the main hubs that foster entrepreneurship. The mission of space is to connect people, leverage ideas and businesses. The type of coworking space in this case, according to Capdevila [3], is type 3, innovative type due to the participation of highly creative and innovative people, with an environment conducive to dissemination of information, mainly due to the various events proposed. Here the emphasis is on the sharing of ideas between coworkers and in the area of coexistence that the space offers that favors the exchange of information. Coworking D 5 Located in the center of the city of São Paulo, Coworking D is a space that hosts startups, is open to the public that through accreditation can use the common areas with the offer of free Wi-Fi. It was made available the possibility of visiting the space and interviewing the users, people who make use of services for free. On the occasion, an interview was made with a visitor who said she used the services of the coworking space because the work at home office did not have the desired effect, mainly due to the lack of contact with other people. The interviewee said that (attending) the space allows interaction with others and favors the creativity of their projects, as well as collaborating with projects of people from different areas. Coworking D focuses on innovative designs. When participating in the event Coworking Brazil 2017, which brought together the coworkings of Brazil, it was possible to talk informally with one of the representatives of the space of Coworking D, who informed that the space has a focus on the creative and innovative process, a fact that corroborates the data provided by visitor interviewed. From the report of the visitor and the informal conversation with the representative of the space it was possible to verify that the Coworking D is in stage 3, highly innovative, according to Capdevila [3]. Coworking Cube The Coworking Cube is located in the region of Vila Olímpia, also in the city of São Paulo. The interview was made with the director of Cubo Coworking, who was entrusted with the implementation of said project created by Banco Itaú. The space has been in operation for two years, and has approximately 300 coworkers, who look for the space to start their startups. Space is a hub for entrepreneurship. Applicants that intend to use the Coworking Cube space go through an evaluation process that considers: business models, acceptance by B2B and B2C companies, are companies whose products or services can bring solutions to the final consumer or to other undertakings; synergy with other startups, the focus is to make the partner companies in the development of new products or services and in the conquest of new clients; startup differentials such as brand and value invested initially. The Coworking Cube offers events that count on the participation of other Coworkings, also receives universities interested in knowing the premises of the coworking. According to the premises of Capdevila [3], the Coworking Cube is in stage 3 type highly innovative, because the said space exactly seeks that the collaborative and innovative process occurs among its participants. The focus of the Coworking Cube is to foster partnerships between companies for the development of new products and to attract new customers. The research showed that all the interviewees come to collaboration, interaction, creativity and innovation, but D and Cubo spaces are conducive to collaborative work and that seek technological innovations and generation of new products and services. 6 5 Conclusion The interviews revealed that the fundamental elements that propagate the generation of innovation and employment and income are the interrelation between people, participation in events and networks of relationship resulting from the use of the same space for work. A factor considered limiting to the research was in relation to the fact that the subject is considered relatively new in Brazil, because there is little national literature about it, the data were obtained mainly from international articles. Much more than saving administrative costs, the spaces of coworking bring the possibility of partnerships, exchanges of knowledge, exchanges of information and the maintenance of a network of relationships. Shared offices present themselves as business platforms, with openness to improve and disseminate knowledge and stimulate creativity. The precepts established by Capdevila [3], are present in all coworking spaces surveyed and indicated different development stages. The innovations offered by the spaces promote the generation of employment and income, which meet the requirements established by Wünsch [7]. Coworking support for coworkers is not limited to tables and chairs, or availability of desks, telephones and mailing addresses. The greatest support is in the events whether they are in the Coworking space or other spaces. Some Coworkings play the role of business accelerators, such as the Cube Coworking, others choose to startups that can generate business with scale in the near future. Whatever the focus of Coworking, research shows that relationships between coworkers is essential. Based on the interviews, it was possible to verify that each of the shared offices tends to provide improvements in order to have greater interaction among the participants, among them the physical expansion of the spaces, allowing the entry of a larger number of participants, fact which increases the possibilities of contacts and interactions resulting in co-creation and innovation. Another item that became evident is the encouragement and dissemination of events from the leaders of shared office spaces. As a proposal to increase the generation of employment and income, it is suggested that public policies be created for the implementation and creation of public spaces regionally. For future research it is suggested that the research be applied to other business centers in other states, so that it is possible to identify the different reality of Brazil. References 1. Munhoz, A.C.C., Sengia, B.O., Fazzio, B.J., Oliveira, G.P.S.: Coworking and Crowdsourcing: How Innovative Business Models Influence Start-Ups Development. In: XVI Semeade, pp. 1-15. São Paulo (2013). 2. The Urban Planner's Guide To Coworking: A Case Study Of Toronto, Ontario, last accessed 3. Capdevila, I.: Typologies of localized spaces of collaborative innovation. SSRN Electronic Journal 1-28 (2013). 4. Censo Coworking Brasil 2017, https://coworkingbrasil.org/censo/2017, last accessed 7 5. The preferred characteristics of coworking spaces the relation between user characteristics and preferred coworking space characteristics: an attribute based stated choice experiments, last accessed 6. Santos, R.M., Barbosa, F.C., Morais, H.M., Vieira, R.S.G.: Coworking and Creative Environment: Organizational Model for Creative Communities. In: XXXIX EnANPAD, pp. 112. São Paulo (2015). 7. Innovation and job creation, as a phenomenon of the knowledge society., http://emporiododireito.com.br/backup/inovacao-e-geracao-de-emprego-como-um-fenomeno-da-sociedadedo-conhecimento, last accessed 11/19/2017. 8. Ribeiro Jr., J.: Phenomenology. Pancast Editorial, São Paulo (1991). 9. Gil, A.C.: Como elaborar projetos de pesquisa. Editora Atlas, São Paulo (2017).