Despite Economy, Some Businesses Succeed

WASHINGTON, D.C. - Most people think of Adams Morgan as a restaurant and entertainment neighborhood. It's also an outpost for budding entrepreneurs. And get this: Despite the dismal state of the national economy, start-up businesses here are flourishing.

Affinity Lab on 18th Street NW is a for-profit business incubator.

"Basically, we're a home, a platform, and a network for people getting their dreams off the ground," says CEO and founder Charles Planck.

Affinity Lab is open to members seven days a week, 24 hours a day. Typical users come in, plug in their laptop computers, and get to work for very modest amounts of money.

"Our membership levels start at $235. a month," boasts Planck, "and for that you get a mailing address, you get some shared workspace, you get a conference room..."

Knowing that the small business members are utterly dependent on the internet, Affinity Lab has two broadband internet suppliers coming into its workspace. If the primary supplier fails, a wireless router automatically switches to the second internet provider.

Planck says over the nine years Affinity Lab has been in existence, 82 percent of his clients have remained in business -- a far higher percentage than most start-up businesses.

Some of the client-members at Affinity Lab believe operating in shared workspace actually has helped their success by sparking ideas and referrals.

Public relations firm owner Sarah Massey explains, "I started as a one-woman shop in 2005, right at the end of 2005. And, in 2009, we're now a four person operation."

Raj Aggarwal has grown his design and web-development business from one to eight employees.

"In 2003, I walked in here, I didn't have any clients," says Aggarwal. "Within three months, I picked up about 80% of my business."

The downside of working at the incubator: Noise. Sometimes working in the shared environment can get distracting. Many of the entrepreneurs put on comfortable headphones while they work.