How Coworking Space Helps Entrepreneurs and Startups?

A coworking office space is an open space that is designed to encourage a sense of community. Coworking spaces are the innovative revolution which has transformed the face of commercial real estate.

Coworking space differs undoubtedly from standard office space, but they even share some of the same features along with a pack of additional ones that might be appealing to your startup and entrepreneurs.

What do Startup Entrepreneurs expect from a work environment?

  1. An environment that supports instant and rapid business growth.
  2. Space that transmits positivity and keeps the team motivated.
  3. An office space that provides privacy and personal space.
  4. An office space that provides opportunities to collaborate.
  5. A shared workspace that enhances networking opportunity.


As work from home has become more dominant now, companies are finding mid-way between traditional offices to switching to complete work from home. And the best solution that stands is coworking spaces. Flexible office space is the best solution for startups and entrepreneurs.

Coworking office spaces provide a productive and collaborative environment to their dynamic inhabitants. It is a shared office environment offering flexible memberships by giving an option to start a subscription lease at any time and cancel anytime. Furthermore, It helps organisations to dynamically vary their space for business growth.

Flexible office spaces are now an easy and effective solution for organizations to be agile with their workplace needs. Coworking space provides you with the advantage to choose flexible work hours and places to work

Less Capital Investment:

Business overhead costs can pile up quickly, especially if you are an entrepreneur or a startup company. If you have your own traditional office space, there are many expenses which you have to look into such as taxes, cleaning, maintenance, furnishing and many other office perks. 

A coworking space is more cost effective than traditional offices as you don’t have to worry about buying or renting a space, companies get to save on operational costs such as technical infrastructure, housekeeping and broadband connectivity. 

Shared office spaces are ready to use workstations equipped with desks, chairs and cabinets. It saves an immense amount of money. Coworking space is of great benefit for startups, entrepreneurs and freelancers.

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Zero Operational Headaches:

Coworking space comes with everything you might need. These spaces usually feature a modern and upbeat design that appeals to a youthful workforce. It helps startups and entrepreneurs to focus on the core area of the business rather than getting into operational headaches. 

The entire up-keeping of the office is taken care off by the space providers, including the technical aspects and community members are provided with 24*7 operational and technical support. 

Customized Office Spaces:

Office design is evolving and continually striving to find new ways how to effectively boost a worker’s productivity. Companies would like that their workspace represents their vision. This is where coworking office spaces come into play that fit the various demands of a business. 

Higher Demand for a more private, progressive workspace has pushed companies towards coworking office space. 

Coworking office space provides personalised space options that can be designed in a way that it speaks about the company’s ideology. From wallpapers to customized layouts, private areas are designed in a way that can accommodate the company’s requirements.

Comfortable and Secure:

Coworking space usually provides a high level of security for the premises. Coworking space can be accessed only via personal identification which makes it most secure. Most coworking spaces are located in a secure commercial area which allow companies to be more productive. 

Coworking spaces offer various workshops which can help in boosting your productivity. It is a hassle-free office space which makes it a worthy investment for entrepreneurs and startups. 

The fact that everything is provided to the company by the shared space provider makes it more comfortable.

Vibrant Community:

The working environment in a shared workspace allows for more interaction with people with different skills, mindset and knowledge. 

The shared workspace is a place where you find yourself surrounded by entrepreneurs, freelancers, digital nomads and like-minded people which offers more creativity and more insight into emerging trends. 

Coworking space encourages communication which leads to motivation and more productivity. Coworking space often hosts a variety of interesting events and lectures that all of the employees can attend which brings a sense of collectivism that will make your workplace much more enjoyable

Workspaces these days also consider utility-driven corners such as breakout zone, phonebooth, private discussion corners, etc. 

Professional Ambience and Facilities:

Coworking spaces are well equipped with a wide range of office facilities like telecommunication services, amphitheatre, conference room, ample parking space, printing and scanning facilities which can be used by entrepreneurs and startups to increase production. 

Shared spaces are meant to create a vibrant and energetic ambience for its community. Coworking spaces are designed keeping in mind the need to motivate and support an innovative environment and keep the spirits high. 

Pool of Talented Individuals & Networking Opportunities:

Coworking space is a platform where people from different industries work together. It is like a large talent pool which can help you set up and advertise your business quicker than you ever thought possible! 

Simply put, startups that choose coworking spaces are not simply saving money on operational and overhead costs They are capitalizing on easy access to cheaper talent and in turn saving money.

Working in a shared space means that you get ample networking opportunities. Workspaces like this conduct regular events and activities that help their community members to connect.

Affordable Meeting Rooms and Event Spaces

When renting your office, you need to invest in its equipment and design. The office layout should consist of proper work stations, meeting/board rooms, break zones, etc.

On the other hand Coworking meeting room is an affordable option as you will choose a small portion of a large shared space and it comes with everything you might need, including communication technologies, reception services, mailbox, etc. 

One big advantage of renting a meeting room or event space at a coworking space is that you get to choose the number of seats you wish to book and the type of amenities you want accordingly and you pay for what you choose which in return lowers the overhead costs. 

Coworking offices and their meeting room reflect the culture, mindset and ideology of the company with their layouts and furniture.

Additional Perks:

Coworking spaces are flexible, social and motivational workspaces other than that it helps in reducing anxiety and loneliness for remote workers who are working from home or working alone. It is great if you want your employee to develop their well-being and persona. 

A shared workspace gives stability and routine to digital nomads. Some coworking spaces offer multi-city memberships and even 24*7 access. 

Coworking spaces have many other additional perks:

  1. Printing: Coworking spaces have state-of-the-art office equipment such as high-quality printers, scanners and copiers with a proper IT team for the employees.
  2. Lockers: Coworking space offers extra storage space for employees.
  3. Signage: Coworking space enables members to show off their brands with physical or digital signage.
  4. Phone booth: Phone booth for making calls serve a dual purpose – they provide members with a place where they can make private calls without getting disturbed and as well as it helps other members working in open space from getting disturbed.
  5. Approachable Community Manager: Community Managers hold shared workspaces together. They answer queries, greet people, provide tours, plan events and help co-workers.
  6. Mail Services: Mail service is a most lucrative benefit of a shared office space. It provides entrepreneurs and startup companies with a professional mailing address. 
  7. Ergonomic Furniture: Coworking spaces provide a variety of seating options so that members can choose as per their preferences. They ensure that the chairs are adjustable, comfortable and ergonomically sound.
  8. Fast Wi-Fi: Coworking space invests in quality IT to ensure that members have a fast and reliable internet connection.

What is Coworking? How Coworking Spaces Works?

What is Coworking?

Coworking is an arrangement in which workers of different sectors/companies share an office space. It allows cost savings and convenience through the use of common infrastructure, such as receptionist and custodial services, equipment, utilities, parcel acceptance services and in some cases refreshments.

The days where coworking spaces were occupied only by freelancers and start-ups are far behind us, large enterprises and MNCs have started selecting coworking spaces over private offices in view of the agility and flexibility offered by shared workspace providers.

History of Coworking Culture

The term coworking seems to be a regular part of the life for a freelancer, someone who works remotely, or even start-ups today, but this has not always been the case.

The concept of coworking was first introduced as a workspace office culture in the year 2005 by Brad Neuberg, a Software Engineer from San Francisco. 

Similar ideas to that of Neuberg’s official coworking space had been percolating over the years. In 1995, C-Base in Berlin was the first hackerspaces around the world and in 1999, “42west24” in New York City was started with flexible desks for teams and individuals. Both C-Base and 42west24 are seen as precursors to coworking spaces, but without the aspect of “community” that coworking offers.

Coworking Stats

Flexible workspace are growing in popularity among freelancers, entrepreneurs, start-ups, SMEs and MNCs looking to expand their businesses. 

There were nearly 19,000 coworking spaces, around 30,000 flexible workspaces and more than 3 million co-workers recorded globally in the year 2019. 

Coworking spaces are estimated to reach 26,000 by 2025, flexible workspaces are likely to be around 49,500 by 2022 and the current total of 3.1 million co-workers are forecasted to nearly double by the year 2022.

Types of Coworking Spaces:

Coworking spaces can be categorized into private offices, community-based offices, shared spaces, and of various other types. Each type of coworking space comes with its own benefits and are usually picked based on the nature of the business and requirement.

Here is a brief explanation of the types of spaces found in the coworking concept for a better understanding:

1. Private Offices :

Usually designed for a team of 4 or more. Though they may cost more than the coworking space, they can provide similar flexibility along with the privacy of a traditional office.

2. Coworking Dedicated Desk :

A desk assigned to you in a shared space with other employees from various other backgrounds and companies is termed as a dedicated desk. It provides an employee with the opportunity to enhance their skills and grow more connections.

3. Meeting Space :

Coworking space providers offer hourly, daily, and even weekly use of their well-equipped meeting rooms for client meetings, team collaboration secessions, planning meetings and more.

4. Event Space :

Corporate meetings, team building events, seminars and any other events can be hosted in the dedicated event spaces.

5. Virtual Office Space :

virtual office is part of the flexible workspace industry that caters to the demands of evolution in the way we work today. It provides businesses with various services, a prestigious office address and the flexibility to work remotely.

Why is Coworking Space Important? And Do People prefer it?

In General terms, coworking is a community of people assembled at a neutral space to work independently or in groups on different projects, from various backgrounds.

Coworking spaces have become extremely popular in the last few years. Without a second thought, it is a great choice for start-ups and budding entrepreneurs to network and collaborate with like-minded professionals. Large companies adapt to coworking spaces to economize, network and fuel employees’ creativity.

It is not similar to a typical office workspace because the people in a coworking environment generally aren’t working for the same company. Coworking spaces usually offer the same amenities and in some cases even more than you would find in a traditional office. 

A major differentiator is flexibility, a long-term lease is not a requirement in a coworking space. Basic facilities like WiFi, printers, cafeteria, and other amenities are common in every co-work space. 

Coworking spaces are seeing a demand among entrepreneurs, SMEs and some large sale companies due to the below reasons:

  • Community – Even in diversity, it is amazing how a community can help one another grow.
  • Flexibility – Coworking space providers always have flexible terms that are more pleasing to an employer, NO LEASE, NO LONG TERM CONTRACTS, etc. are some of the reasons we see companies opting to co-work today.
  • Reduced stress – The current pandemic has got almost everyone working from home. While this can be a great way of working, it can easily fall apart as well. The key to have a stress free work life balance is to work outside one’s home but still in proximity to home.
  • Networking – Meeting new people in a coworking environment can be great networking that can eventually lead to new opportunities for business growth.
  • Motivation level – It is highly impossible to slack off when in a room full of driven people. Energy and productive levels rise high in co-work spaces.

Coworking for Startups and Freelancers:

Whether you are an aspiring entrepreneur or an experienced freelancer, the term coworking must be familiar and relevant to you. In the early stages of one’s business, working from home or a coffee shop may seem enticing and cost-effective. But as one’s business expands, the need to have a space of your own for a bigger team, hosting client meetings, and just having a better work environment also becomes a necessity.

When renting an office, your investment is calculated based on the location, equipment, and design you choose. On the other hand, Coworking spaces are a fully equipped office choice that comes with everything you might need. It includes communication technologies, reception services, mailboxes, amenities, etc.

Collaboration and networking are some of the additional benefits of Coworking Space. While it’s possible to work remotely or from the comfort of one’s home, your business might be missing out on crucial networking that might open new doors.

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Coworking Spaces for Small & Medium Businesses:

For SMEs, time is the most important asset. That is why coworking spaces are almost always ready to move in for most Small and Medium businesses.

Coworking spaces are more focused on saving money for businesses. Essentially, coworking spaces are just office spaces that businesses rent on a monthly basis, free of any complicated lease agreements and hefty lease payments. Coworking space providers offer enterprises unmatched flexibility in their use and commitment to space without tying up much-needed capital to a lease obligation.
For an SME, it is important to build and maintain a network of potential clients, contacts, and investors. Most of this can be done inside the coworking environment itself, with the likelihood of finding all three within the small space.

Coworking Spaces for Corporates: 

Corporate organizations looking to grow their businesses into a new market often use coworking. They are opting to work from a professional space while avoiding the overheads due to the cost-effectiveness offered by coworking spaces rather than having a corporate office. 

Large firms now have headquarters in coworking spaces and focus on growth, leaving the minutiae of setting up an office to the coworking company.

We see many corporate offices utilizing coworking spaces to add a more social and collaborative aspect to the traditional office space. It becomes natural to interact with people from other companies and sectors, this gives the larger corporations access to new businesses with new talents.

Famous brands that use Coworking Spaces:

5 successful companies that were started in coworking office spaces:

  • Instagram.
  • Spotify.
  • Uber.
  • Ofo.
  • Indiegogo.

Here is a list of the top global companies that are now using coworking spaces:

  • Microsoft.
  • Facebook.
  • Apple.
  • Samsung.
  • Alibaba.

Future of Coworking Spaces:

As people are choosing a more flexible lifestyle, they prioritize on collaborations and community. No longer do people look to vertical expansion but they tend to slant toward a more horizontal expansion that encourages collaboration opportunities within the community, thus paving the way for cohabitation spaces where people can engage and connect closely while simultaneously experiencing their freedom and independence.

A recent report by JLL stated that the current market penetration of flexible workspaces in total office space stands at 3% and this percentage is expected to go up to 4.2% by 2023.

Pros & Cons of Coworking Spaces

Coworking has become a global trend in today’s business world.

There are some Pros of working in a coworking environment:

  • Cheap, flexible membership 
  • Scaling on demand 
  • Low-maintenance space 
  • Creativity and collaboration 
  • Events and amenities

Although coworking is quickly taking off, it is not always perfect for everyone.

Some Cons of working in a co-work space may include:

  • Sacrificed Privacy 
  • Distracting events
  • Crowds and commotion