Coworking Spaces and Local Entrepreneurship in Peripheral Regions: A Network Perspective

ABSTRACT Coworking spaces (CSs) are increasingly seen as tools for endogenous development in rural and peripheral regions, yet evidence of their economic impact remains limited. This paper examines how CSs support local entrepreneurship by fostering knowledge exchange networks and formal business relationships. Using a mixed‐method case study of a CS in a small Spanish city, the research combines surveys, interviews, observation and statistical modelling to analyse how connections formed inside the space and with regional actors influence members' economic performance. Results show that knowledge exchanges within the CS are often more important than external ones, highlighting their value to local entrepreneurs. CS networks complement entrepreneurs' specialised extra‐regional networks by enabling weak ties with regional actors and promoting exchanges of contacts and business management knowledge. Well‐embedded managers act as networking intermediaries. CSs also facilitate formal business relationships, shaped by knowledge exchange levels, related variety and organisational size, ultimately improving members' economic performance.