We all have seen the abrupt rise in the number of Co-working office spaces all over the world. These offices that run as shared spaces have specifically seen a dramatic rise for the past decade. According to the Global Coworking Survey, 2017, coworking spaces will increase by 41% in 2017!
So what has caused this increase? It’s the workforce. The workforce, which comprises a large body of entrepreneurs having small to moderately large businesses. Since all small entrepreneurs need an affordable office, the increase in their number is directly proportional to the increase in coworking spaces. And who makes a huge chunk of the workforce? Millennials. But wait, we shall discuss the basics first.
Just in case you haven’t run into the term enough yet, Coworking is an approach to working which involves a specific place wherein individuals from different businesses can work. The memberships in coworking hubs often mimic that of a gym. They offer monthly, weekly and daily membership plans, which are charged per person. This grants the tenant continuous access to a workplace, the administration of which they need not handle themselves, for the same is taken care of by the hub management, every day.
Why Millennials Are in Love with Coworking Hubs
Coworking offers tremendous benefits. Let us have a look at some of them:
Every small business wants to cut down on operational costs. Unlike a traditional lease, coworking spaces are charged per person. This is why they are mostly cheaper than conventional offices. If you buy a large office to accommodate your team in, you may have to halt your plans to expand, whether it is in terms of hiring more, or investing more. Coworking hubs, on the other hand, give you the liberty to join a monthly membership and keep your running and initial setup cost as low as possible, easily giving themselves an edge.
Apart from getting a reasonable rented office space, you also get to eliminate a lot of your administrative worries. An office involves a bunch of things to be taken care of. Internet problems, electricity supply, food, lighting, bathroom repairment and cleaning, use-ready printers and scanners, you name it!
Millennial entrepreneurs live lives that look nothing like that of their ancestors. They are ever so busy with their daily tasks, most of which are executed on their computers and mobile phones. Working on a computer all day requires extreme bouts of concentration, and an environment conducive to working.
Millennials get all that they need to work productively, in a coworking setup. This way, they would focus on nothing but their work. Because everything else has been handled.
This may as well be why most millennials choose renting over buying accommodation.
In a Coworking space, millennials get to interact with various individuals from different business backgrounds. Mostly, you could be working next to as many as 30 coworkers in a shared office space. The number can vary depending on the area of the office. But practically speaking, you will get to work among at least 12 other coworkers.
Imagine the networking potential you can unleash by simply switching to a coworking hub. This way, you can expand your contacts almost in a gallop!
While conventional leases may seem like a good idea for stable and established businesses lacking any plans to expand in the immediate future, the story with small business differs.
Almost all Millennials start small. A few of them blow up create biggies like Instagram over time, while most maintain a small to moderate scope. In such a scenario, they happen to get immediate needs for expansion. Trouble ensues when their business progresses rapidly and they need to move out to a bigger office.
like the idea that they don’t have to commit. Leases tend to cover periods of several years, and owning a building is an investment that can (or should) last for a decade or longer. Shared office space, on the other hand, can be reduced to a monthly, daily, or hourly If your needs change often, this is a must.
It is indubitable that most millennials love being their own boss. Because of a spate of online freelancing portals and technology in general, it has become possible for millennials to Thanks to the availability of online resources, and the fast turnover rate for tech startups, creating a startup from scratch happens fast these days, and can be done with smaller teams. That increased, rapid-fire demand for startup space has been a boon for the shared office space industry; shared spaces are ideal for entrepreneurs with small budgets, uncertain futures, and a need for networking with other business owners.
Nielsen surveys revealed, 62% of millennials choose to live in urban centers, where access to resources like grocery stores, restaurants, and entertainment are convenient and mutually accessible to others. Shared office spaces usually occupy urban centers, making them a perfect fit in millennials’ dream locations. Centrally located, millennials can either walk to work easily or use the opportunity to explore more of their home city.
Finally, remember that millennials are resisting the urge to comply with traditional office structures (for better or worse). They’re breaking down corporate hierarchies, dismantling 9 to 5 mentalities, and even redefining social norms in business interactions. Shared offices offer more opportunities for individual expression, and offer a counterpoint to traditional office culture. To put it simply, they’re new and they’re hip.
Coworking hubs offer a vast deal of benefits. But like everything, not everybody is cut out for the same. Especially, businesses that need constant upgrades in terms of workspace optimization may not be able to do the same and would be required to move.
man and woman working together in office