Co-working Spaces: An Economic Game Changer
Co-working offices are more than just spaces that have workstations as there is implicit skills transfer; the impact of reduced capex on designing and inhabiting an office space or investment in employee upskilling can provide a major boost to a business’s bottom line.
Lately, it is not surprising to google co-working spaces and be overwhelmed by the amount of players that pop up in the search results. With the number of new large and small players, setting up shared workspaces it is safe to assume that the concept of co-working spaces has become popular and such spaces are in high demand. Co-working spaces are also proving to becoming economic game changers that helps support young India’s entrepreneurial spirit.
Many of the large organizations and smaller companies are consistently shifting to co-working spaces as they see tremendous benefits that they may not have been able to avail in old school individual owned or leased office spaces. Many experts believe that by 2030 co-working spaces will incorporate about 30% of all office spaces. The rapid growth of co-working spaces mirrors the trend that it appeals to the majority of the workforce. The demands and needs for sophisticated, connected infrastructure make co-working spaces an ideal option for entrepreneurs, MNCs, SMEs, freelancers, and remote workers. While most of us understand that, co-working spaces are a deterrent to large expensive commercial spaces and a breeding ground for knowledge sharing. Co-working spaces allow for a lot more such as:
Time is Money
Co-working spaces allow entrepreneurs and start-ups to start work immediately as they do not need to burden themselves with setting up the infrastructure required for their business. Simple things such as interior designing and procurement of office furniture can also be a time consuming process that can be a hit or a miss at times. Co-working spaces usually are well-researched ergonomically designed spaces aimed at the comfort and requirements of the new gen work force. Infrastructure goes beyond just the space and workstations but also looks into all other ancillary services from runners to virtual CFOs and HR suites. The enhanced infrastructure and support services assist the entrepreneurs or start-ups gain their client’s confidence that translates into business revenue. This in turn helps smaller players gain more business and helping in their growth, which would have been harder in a traditional office space.
Putting capital to good use
Co-working spaces offer trendy ergonomic and visually appealing modern workspaces to create the right work environment for their employees. Setting up and maintenance of such workspaces do not come cheap. Also at times, these spaces require additional support agencies that just add to the cost. Designed to be adaptable to the needs of freelancers, small businesses, start-ups or large corporates, co-working spaces typically work on a leasing model where large, small or one-man armies can rent out workstations on an hourly, daily, weekly, or long-term basis, further helping in cost reduction. Fully fitted workspaces and services, frees up capital, that can be utilized by businesses to focus on their core services or products helping their bottom line from the get go.
Boosting Entrepreneurial Spirit
How often have we come across a friend with a great entrepreneurial idea for a small or hyper-localized business? Alternatively, the story of someone being discouraged to open up a small business due to the tremendous overhead costs that are required to start is also not new. Co-working spaces negate these issues by creating a shared economy that help these entrepreneurs realise their dream. By providing flexible packages with shared amenities and resources, Co-working spaces enables small business owners to focus on getting their operations off the ground, rather than worrying about fundraising or paying back debt.
Also for those that dream of being the next unicorn start-up, most large co-working spaces also have incubators or networking opportunities that put these start-ups in touch with VCs that can help gain the funding required. This is one of the main reasons that India ranked third in the global start up ecosystem, according to the Economic Survey for 2018-19.
Transforming Tier II cities
With increasing disposable income and availability of ample talent pools at lower costs and plenty of space to grow, Tier II Indian cities will become investment destinations for corporate India. While Tier II cities have their own local players, many national and international brands are also entering these cities. The new age economy and availability of shared workspaces have reduced the need for migrating to major cities for business opportunities. The rise of co-working players will definitely benefit entrepreneurs and start-ups by putting them in touch with investors, industry experts and provide exposure to the rest of the country for association or acquisition helping with the growing of sustaining local economies.
Co-working offices are more than just spaces that have workstations as there is implicit skills transfer; the impact of reduced capex on designing and inhabiting an office space or investment in employee upskilling can provide a major boost to a business’s bottom line. They work as economic catalysts, i.e., a company can precipitate a fundamental change in technology or business. Co-working offices also attract the right talent; encourage new opportunities, and eventually help to boost the local and regional economy.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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