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What is Coworking and Why is it So Popular With Startups?

Posted on Jun 1, 2015 11:00:00 AM by Ryan Ring

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What is coworking? Many companies are moving to coworking spaces due to the eclectic environment and the ever-changing atmosphere. Perfect for startups and freelancers, coworking allows for a professional environment that is affordable and gives smaller entities the space they need to grow.

 

What is Coworking?

Coworking is a style of work that takes place in a shared working environment. A coworking space is usually a large, open area with desks. Businesses and freelancers rent a desk, typically on an monthly basis. Most coworking facilities also have meeting rooms available for rent and will sometimes have smaller, private areas available if need be. Professionals that occupy the same space are often not from the same organization, but startups may have their small team all in a coworking space together.

 

Meeting people in similar or different industries and having a fun, stress-free environment are a couple of the major benefits of coworking.

 

Why Coworking is So Popular

Coworking has become popular due to the rising number of freelancers and startups that don’t require a large initial workforce. Statistics show that 40% of the workforce, by 2020, will be comprised of:

  • Freelancers
  • Temps
  • Independent contractors
  • Solopreneurs

 

These are the same professionals that often feel isolated when working from home. A more professional atmosphere, statistics also show that 70% of people working in a traditional work environment felt healthier than their peers. Coworkers also boost productivity in these environments, with 64% of coworkers stating they are better able to complete tasks on time when coworking.

 

Interaction with people is cited as being extremely important to coworkers, and the number of coworking spaces has doubled year-to-year as a result. Nearly 58% of people occupying these spaces worked alone at their home.

 

An environment that allows for flexible hours and accommodating prices, coworking is expected to grow greatly in the next 5 years as more workers move to being contractors or freelancers.

 

Image By: DAXKO