To keep up with the changing scene in the business world, business centers in the UAE are providing cost-effective coworking space. Up and coming entrepreneurs can use these coworking spaces for their startups as a cost-effective replacement for office spaces. Today we are going to look at how these business centers intend to replace traditional offices with coworking spaces.
One of the big reasons coworking spaces are taking over in the UAE is because of the rise of entrepreneurship. What this means is that coworking spaces need entrepreneurs as much as entrepreneurs need coworking spaces. Business centers all over the country have realized this truth. As the government is providing all the support up and coming startups need. The business ecosystem is getting more competitive than ever.
If existing businesses and start-ups are to stay afloat in this era of competition. They need to cut costs, or at the very least, select cost-effective options. That is why not only entrepreneurs and freelancers but SMEs are also looking to join these coworking spaces.
Why are startups and freelancers opting for coworking spaces?
- Getting to be part of a community
It is important to have a source of inspiration when you are an entrepreneur or working alone. One easy way to keep yourself motivated is by surrounding yourself with people who motivate you. However, it may be hard to find like-minded people. After all, not everyone can digest the risks that come with entrepreneurship. A coworking space solves this problem. In these spaces, entrepreneurs find themselves surrounded by people who are going through the same phase or have already passed that uncertainty phase. Either way, these people keep each other motivated and share experiences. That is why even when people have a good working conditions in their homes, they chose to work in coworking spaces.
- A place free of distractions
Especially during the pandemic, it is hard to create a working environment at home. Even at other times, our home usually has too many distractions. Any freelancer knows how hard it is to keep their focus from drifting if the working conditions are not just right. Even if you have a dedicated working space in your home, a coworking space can still help increase your productivity. As you find yourself surrounded by people of similar interests and work ethics. You can get tips and creative ideas that you would not get elsewhere.
- Getting access to the business world
Entrepreneurs often meet their potential business partners in these spaces. While freelancers find clients here. Coworking spaces are a great place to expand your network and meet new people. You may even develop a positive network with your competitors. It is not unheard-of of competitors to turn into business partners after working together. It is important for entrepreneurs and freelancers to have a wide circle of knowledgeable and professional people. These spaces provide a safe and positive environment to meet such people.
- Accessibility and affordability
As a new start-up owner, entrepreneurs have a lot to tackle. It is always a relief to get a few of these problems out of the way. When opting for coworking spaces, entrepreneurs do not need to negotiate a lease or worry about maintenances. No maintenance means no maintenance costs, which makes these spaces even more attractive and affordable for startups. Employees also find these spaces more productive and enjoyable. As there is competition between business centers to make their coworking space better than others. These spaces often include sources of recreation and aesthetic interior designs. The competition really helps improve the ambiance of these spaces.
Why are SMEs opting for coworking spaces?
- Staying ahead of the competition
As we have mentioned before, if businesses are to survive in this competitive ecosystem, they must cut all unnecessary costs. While buying a large office or leasing one is very expensive, membership costs of coworking spaces are cheap and getting cheaper thanks to the competition between business centers. Working from these spaces reduces the vulnerability of SMEs to changing market conditions. As the economy of the UAE is moving from oil to other fields, a lot of changes are taking space in short spans of time. In times like these owning large expensive offices may provide a lot of risks. For example, if for any reason an SME must cut off some employees, a portion of their office will be unused and unutilized. If for any reason a business must change offices, it incurs cost as well. A coworking space nullifies all these risks and helps businesses stay ahead of the curve.
- Greater flexibility
Many fast-moving sectors demand agile businesses. Leasing and owning an office are long-term investments that can be a hindrance for businesses in these sectors. While leasing and owning are commitments made for multiple years or even decades. Renting a coworking space can be for a few months, a few days, or even a few hours. For example, the tech industry can be considered a fast-moving sector. A business in the tech industry needs to be flexible in terms of scaling up or down. Apps and websites may gain and lose popularity in the span of a few days. In these industries, popularity means profit. If they lose popularity, they lose profit and must scale down. So, these businesses can take advantage of the flexibility provided by coworking spaces.
- Increased reliance on freelancers and part-time workers
As we have mentioned before, freelancers can find clients in these spaces. Likewise, clients can find freelancers in these spaces. If a business decides to hire more part-time workers, they do not need to look for a bigger office. They can move the new workers in a coworking space easily.
In this dynamic and fast-paced economy, committing long-term investments in offices is a huge risk. Business centers in the UAE are transforming their traditional offices to coworking spaces more and more every day. For reasons such as affordability and flexibility, coworking spaces are the best choice for entrepreneurs in the UAE.
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