Why More SMEs and Startups are Embracing Coworking Spaces

When people think of coworking spaces, they often picture freelancers with their flexible schedules and coffees in hand. 

However, while coworking spaces do provide the perfect place for freelancers to escape working from the kitchen table or noisy cafes, businesses of all sizes are embracing the benefits and reaping the rewards.

SMEs in particular are thriving as a result of coworking spaces. With over 5.49 million SMEs in the UK (over 99% of the UK’s business population), Small to Medium Enterprises (SMEs) are the foundation of the UK business landscape. 

As countless SMEs are branching away from traditional office structures in favour of coworking spaces, let’s take a look at why and how these flexible working environments are changing the way we work for the better.

What Are Coworking Spaces?

According to Wikipedia, “Coworking is an arrangement in which workers for different companies share an office space. It allows savings and convenience through the use of common infrastructures.” 

A coworking space can be a big room, office floor, or even a building that allows professionals to gather from all different industries and skillsets to work, independently or in groups, on their projects.

What’s Included in a Coworking Space?

Coworking spaces offer the same amenities you would expect from a traditional office. Every coworking space has the basics; WiFi access and desks to work from. 

However, many coworking spaces will also provide amenities such as printers, conference rooms, tea, coffee, and snacks. 
Some working spaces even provide access to digital assets, such as 3D printers, or other tech SMEs may not have access to.

Is the WiFi Connection Secure in Coworking Spaces?

Everyone knows that joining public WiFi is a risk. Naturally it’s a concern many in coworking spaces have. 

Today’s coworking environments however, have IoT connectivity services that provide secure WiFi connections and multi-layered cyber security protection to keep workers safe in public coworking environments so that business can keep running smoothly.

Types of Coworking Spaces Available

Coworking environments are all unique. So, it’s always a good idea to do your research and find a space that suits your needs. There are typically three main types of coworking spaces available. Let’s take a look:

Open Workspaces

Open workspaces are essentially big open workspaces. Usually, workers are all together in one room and they have minimal barriers, such as walls or cubicles, put up between their workstations. This creates an open plan feel that makes conversing with others easier and feel more natural.

Private Workspaces

Private coworking spaces are ideal for those keen to work on a project with colleagues from their company. Private breakout rooms include: 

• Offices
• Custom suites
• Conference rooms

These spaces allow colleagues to meet, present, and discuss work without disrupting other people in the wider coworking space.

Industry Specific

While less common, there are some coworking spaces available to specific industries. The purpose is to attract SMEs working in common industries or with similar interests (such as creative professionals). 

Industry specific coworking spaces allow like-minded professionals to make meaningful connections that might allow for collaboration, joint projects, or talent acquisition in the future.

The Benefits of Coworking Spaces

The world of business and the ways we work are ever-evolving. Increasingly, small and medium-sized enterprises are breaking away from conventional office set-ups and immovable office hours to embrace the flexibility and freedom that comes with coworking spaces. 

Let’s take a look at the benefits.

Cost-Efficiency and Reduced Overheads

Budget constraints are one of the biggest challenges experienced by SMEs. Rising operational costs are a significant worry, with many SMEs facing significant financial pressures due to rising inflation, taxes, and energy costs.

Coworking spaces provide a cost-efficient solution, allowing SMEs to work from an office and make use of the amenities available without having to foot the bill. This is appealing for SMEs looking to reduce their overheads.

Flexibility and Financial Freedom

Small to Medium Enterprises thrive off of flexibility. It’s their secret to success, allowing them to jump on client calls, meet potential clients for lunch, and foster happier and more connected working cultures.

As we all know, business can move quickly and if you want yours to succeed, it’s important to be adaptable to change. Unlike traditional office leases that tie SMEs into long-term commitments, coworking spaces offer the flexibility and freedom SMEs need to scale up or down easily and without the associated costs.

Personal and Professional Growth

Beyond sharing desks and chatting over coffee breaks, coworking spaces allow professional connections to flourish, opening the door to new and exciting business opportunities. 

From freelancers and startups to SMEs and full-scale enterprises, you can meet all sorts of people in coworking spaces, learning from their successes and failures and using this knowledge to shape your own business success.

A Boost in Productivity

Ever felt bored at work or tempted to scroll your socials instead of replying to your emails?  We’ve all been there. In fact, 40% of the UK’s workforce struggles with lack of motivation. Sometimes all that’s needed is a change of scene. And coworking environments offer the perfect solution.

Coworking spaces work like libraries or study halls, creating an environment of peer accountability. This means individuals get to witness other professionals diligently working on their own projects. This, in turn, fosters a motivational atmosphere that helps you stay focused and on track. 

When workers are around other highly-motivated individuals, they’re more likely to stay committed to the task at hand and less likely to give in to distractions, making coworking spaces a great way to get your work done.

Collaborations and Joint Ventures

Coworking spaces are the perfect place for collaborations and joint ventures to take place. Whether you’ve got a groundbreaking idea you want help executing or you’re looking to connect with skilled professionals, the coworking experience provides a place for you to meet, connect, and start something exciting.

Establish a Key Business Presence

Getting your foot in the door when it comes to key business locations can be extremely difficult - not to mention extremely expensive. 

For small business owners and SMEs looking to establish a key presence in thriving business districts (typically found in city centres), coworking spaces can provide an affordable yet visible solution.

Coworking spaces are typically situated in the middle of towns or cities, making them visible and easily accessible. For SMEs lacking the budget to secure their own commercial space, coworking environments offer a great solution, the chance to establish a visible professional presence without the eye-watering costs. 

Coworking: the Ultimate Business Solution for SMEs

In a working world where business operations are more hybrid than ever before, coworking spaces are breaking through as the ultimate solution for SMEs. 

Now you can expand your network, attract top talent, reduce your overheads, and future-proof your business all under one roof and without compromising on your business needs.