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Two events changed the course of Coworking Space like no other. One is the financial crisis of 2008, and the other is the Covid-19 pandemic. Both bought a paradigm shift in the mindset of people, especially the young millennials and Genz. They had never been so financially cornered. Business bled money like anything, and what worse could be than inflation?
This created a situation of confusion among business professionals, especially startups and small-medium enterprises. As a result, they needed to learn how to conduct a business and make it profitable without burning too much cash on overheads.
According to the reports, younger people like the Millennials and Genz are the generation with little disposable income. But inflation is increasing daily, making money even less available.
The second event was more of a recent one. Covid-19. The pandemic has made many people’s life worse. Many lost their jobs, startups failed, and whatnot.
But one thing that Covid-19 induced in the mindset of people was that they want flexible coworking space. They want to be able to work from anywhere and enjoy their personal lives as well.
But anyway, there is one thing that should be very clear. Today’s startups and entrepreneurs have comparatively less money to spend upfront, given the situation of the Economy. So these two events have shaped the future of coworking spaces.
Even in a country like India, coworking space demands are snowballing. As a result, many younger people are moving towards freelancing, but at the same time, they want to work in something other than a traditional office setup.
And this is the reason for the rising demand for coworking space.
Covid-19 Impact on the Coworking Spaces In India
The pandemic has resulted in two important things.
First, everyone in India wants to have a startup.
Second, they need more money.
Hear me out first.
The pandemic made us realize that our jobs are not the only thing we can be dependent on our whole lives. And people want to start their side business or even build a successful company from scratch.
Another thing is that Covid-19 bought a significant burden on people with debt and almost put some of the world’s major economies into recession.
So the rising cost of inflation was already a worrying factor before the pandemic.
And due to stringent lockdown restrictions, Coworking spaces were closed. So it had a forceful impact on its business.
But now, as the lockdown was slowly lifted, coworking spaces took a decent start.
Coworking spaces were a boon to them when most people needed more cash to rent out a space and start their business. You can set up your company with the proper address and location. This allowed me to be another player to get into the coworking business.
Apart from that, concept like Virtual Office has really helped small business and startups to setup their business with lowest overheads and also provide all administrative services like business address, mail handling and other important tasks.
Why are India’s coworking spaces getting popular?
In the early days, people used to work together under the same roof. The traditional office spaces were divided into cubicles. Frankly, the workspace was mundane, but the resolution of the workers was firm. The working environment hardly mattered to them. They were mentally and physically tough enough to adapt to their situations around.
But today’s times are different. Today’s work culture is very different. Technology has made it easier to be more flexible without location and time. You can be in any part of the world and still attend an important meeting in Mumbai. So the traditional 9-5 work routine doesn’t work anymore.
And there have never been more entrepreneurs and startups, freelancers, and the complex fluid work system. All these combined have given rise to coworking spaces all around the work, and India is no exception.
Coworking Spaces are shared by freelancers or Startup owners or Individual professionals working with different companies. The reason why a lot of people are choosing Coworking spaces over traditional office spaces is that coworking spaces are quirky and cool. People from different backgrounds meet and work under the same roof giving ample opportunity to network.
How fast are coworking spaces growing in India?
In the next ten years, the primary workforce of the Indian Economy will be Millennials and Genz, and they hate working at the traditional office setup. Also, they put their convenience first. So they want to work in something other than a typical 9-5 setup. In addition, they pay more attention to personal growth, which can enhance their professional goals.
Hundreds of companies have gotten into the coworking industry, making inroads into the best cities in India. Some of the most famous companies are:
1. Mumbai Coworking
2. Awfis
3. Innov8
4. Regus
5. WeWork
Also Read: Pros and Cons of Coworking
Coworking Space Demographic:
Statistics 65% of people working in coworking spaces are under 40 years old (DeskMag).
The IT industry has the most significant number of coworkers, followed by PR, marketing, and remote sales teams (DeskMag).
Women make up 40% of the coworking demographic (AskWonder).
Freelancers make up the largest coworking demographic in the world (ErgonomicTrends).
55% of those using a coworking space still work in the same one they started in (Whattobecome).