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Why are SMEs and startups choosing coworking spaces?

Nazia Rahman - Writer at Bisdesk

Coworking spaces are extremely popular among SMEs and startups. As per TeamStage, SMEs are the primary users of the coworking business model, given that almost 40% of SMEs leverage coworking spaces. The second place is occupied by startups - given that almost 28% of the startups use coworking spaces

The rising use of coworking spaces among SMEs and startups can be attributed to 4 reasons -

Coworking spaces offer a flexible and cost-effective alternative to traditional office spaces, providing an environment that fosters creativity, collaboration, and innovation. 

Let’s explore in-depth -


Leasing flexibility

Startups and SMEs thrive on limited financial resources. Cutting down infrastructure costs is one of the most widely-adopted cost-saving strategies among startups and SMEs. That’s where coworking spaces come into play.

Most coworking spaces come with upgrading and downgrading solutions as you branch up or trim down your business - with little compensation attached to it. Also, you can rent coworking spaces as long as you want - it can be only a month long or up to 5-7 years, as per your requirements and goals. 

Also, coworking spaces offer a myriad of space solutions - from one desk to full-unit corporate suits, you can plan out your space as per your needs. 

Amenities, services & facilities that coworking spaces offer

Coworking spaces make sure that your much-needed coffee breaks are met with care! 

Not only coffee, but coworking spaces also come with the full set of needed amenities and facilities such as reception services, admin services, recreation zones, meeting rooms, cleaning services, etc.

It’s just your office space but managed by a team of professionals you know and cater to your every need. 

Here’s a list of amenities, services, and facilities coworking spaces offer -

  1. High-Speed Wifi
  2. Power Backup
  3. High-Level Security
  4. Meeting Rooms
  5. Event Rooms
  6. Conference Halls
  7. Video Conferencing Equipment
  8. Lounge Area
  9. Tea/Coffee, Pantry
  10. Community Events
  11. Parking Spaces
  12. Support Staff


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Cost affordability

Coworking spaces are usually more cost-effective than traditional office spaces, especially for startups and SMEs. Here’s how - 

As discussed in the first point, coworking spaces offer flexible leasing options, which means members have to only pay for the workspace and amenities they need, whether it's a private office, a shared desk, or just access to common areas. Additionally, as said in the second point, coworking spaces provide amenities such as high-speed internet, printing, meeting rooms, and coffee, which can save members the cost of setting up and managing their own offices with additional support staff.

Moreover, many coworking spaces offer affordable membership plans that cater to different needs and budgets. For example, some coworking spaces offer part-time memberships, which allow members to access the workspace for a limited number of days or hours per month at a lower cost. Also, fixed desking and flexible desking options are available in most coworking spaces. 

Networking opportunities

Networking and community-building opportunities make coworking spaces a hotspot for emerging businesses. 

Communities can collaborate on projects, attend events from different companies, stir up interesting discussions, showcase their demo, grow their personal network, brainstorm creative ideas, etc. 

In coworking spaces, you can build valuable relationships, learn new skills, and grow your professional network, which you may not be able to do in traditional workspaces with the same office mates. 

Other reasons why coworking spaces are leveraging coworking spaces

  • Creativity & Innovation

Coworking spaces provide your employees with different perspectives. A wide array of perspectives are known to create highly innovative and out-of-the-box ideas. In coworking spaces, the same table can be shared by a developer and a designer - these types of grouping bring out creative ideas and innovative solutions. 

  • Sense of community

According to Fundera, 43% of businesses consider team building and collaboration as important aspects that a coworking space should offer. Also, coworking spaces provide an opportunity to meet a diverse group of people and increase team bonding skills.

  • Expanding to different territories

As a startup or SME, when you want to tap into a new market, the best option for you is to choose coworking spaces. Not only startups and SMEs, but many large corporations also choose coworking spaces to expand into different spaces. 

Globalization Partners & Bisdesk came together to make expanding easy for you. You can recruit team members from Globalization Partners and Bisdesk can help you find the best coworking space around the locality. 

  • Working in a calm environment

Working from home can be chaotic - you have to take care of your kid, feed the cat and sort the household chore while completing the excel sheet. If your office is too far away from you and you don’t want to miss out on spending time with your family, you can choose a coworking space near your home. 

Coworking spaces provide the full office vibe along with solving the space complexity of traditional offices. Employees feel more at ease when their home is near their workspace and also they don’t have to completely relocate to work in their dream company. It’s also a cost-effective option for both parties. 

  • Ease of finding the right coworking spaces for every type of business

The coworking industry is booming! In 2023, the industry is set to be worth almost $20 billion. With the rise of affordable coworking spaces, the rise of coworking marketplaces is also increasing. Aggregators like Coworker, are helping people spot the perfect workspaces that fit their needs. 

Also, coworking marketplaces like Bisdesk, are helping businesses in the UAE and India find flexible workspaces by accumulating over 25,000 spaces across those regions. Currently, Bisdesk is the largest coworking marketplace in the UAE, and also an eminent aggregator in India - all types of businesses can find suitable coworking spaces on Bisdesk.


  • What are the benefits of coworking spaces?

Bigger networking opportunities, space & time flexibility, productivity, access to amenities, feel-at-office vibe, enhanced focus, improved work-life balance, cost-effectiveness, etc. are some of the benefits of coworking spaces. 

  • Why are coworking spaces so popular among SMEs and startups?

Coworking spaces are popular among SMEs and startups because they provide affordable, flexible, and collaborative work environments, networking opportunities, and access to various amenities.

  • How are coworking spaces more cost-effective than traditional office spaces?

Coworking spaces are more cost-effective than traditional office spaces because they offer flexible membership plans, shared amenities and services, and no long-term lease commitments. This means that businesses only pay for what they use, and can save money on overhead costs such as rent, utilities, and equipment.

  • How do coworking spaces provide a professional environment to SMEs and startups?

Coworking spaces provide a professional environment to SMEs and startups by offering amenities such as high-speed internet, conference rooms, printing and scanning services, and a quiet and well-designed workspace that creates a positive image for clients and visitors.


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