Co-Sharing Work Spaces: Popularity And Impacts

Introduction

The platforms of the sharing economy had changed the way how people live and work. One of it is co-sharing workspaces. Stakeholders such as entrepreneurs, freelancers, employees and companies have participated actively in this peer to peer platform which has affected them in terms of social and economic positively and negatively. People from different backgrounds could interact with each other and impart knowledge and skills by sharing their ideas freely and thus increase productivity

Why people partake in the co-sharing workspace?

As market rapidly, technologies advances and apps are constantly developing to suit the needs of consumers, more and more people are demanding for convenience and cheaper means of purchasing or acquiring items. This had created opportunities for investors to venture into potential market for investment. Such as the existence of Uber, Grab, Airbnb etc. to cater to the needs of the consumers as well opportunities for producers due to the increase in demand and shortage of supply, this will drive up the competition among companies. Likewise, for co-sharing workspace, traditional office spaces are no longer sufficient to cater to the needs of people that demand for flexible working hours and spaces and certain facilities. The underutilized spaces could also be converted into co-sharing workspace for additional rentals. Co-sharing workspaces also allow people with different backgrounds to interact with each other and impart useful knowledge and skills unlike traditional office spaces where people will co-share spaces such as desk, facilities etc. It will not be as rigid as an office workspace where bosses will be around, and employees are reluctant to share their ideas freely. Office politics would not arise as well due to people of different backgrounds. For co-sharing workspaces, inspiration and creativity could be gained which will boost their productivity.

Types of stakeholders and how they are being affected

Stakeholders such as co-sharing workspace operators (Wework, Spacemob, JustCo), entrepreneurs, freelancers and employees and companies operating traditional office space will be affected positively and negatively.

Entrepreneurs, Freelancers, Employees (Users/Consumers)

Entrepreneurs wanted to set up small businesses could co-share office instead of renting the entire space which is more cost effective. Freelancers will also be able to use the space to execute their plans or develop useful ideas. They could also use the facilities for example, Architects that require to print out A0 or A1 drawings which co-share space could provide. Likewise, for employees, they could take this opportunity to interact with people from different backgrounds and boost their productivity. This is essential also for employees that demand for flexible working hours. Co-sharing workspace operators, companies operating traditional office space

Producers/Investors

Operators are required to obtain authorities approval to rent out the space and they are required to cater to the needs of the users to stay competitive in the market by providing relevant facilities which will incur additional costs. If more co-sharing workspace constructed, this may drive up the rentals for companies operating in the traditional office space which will affect them negatively. Government may also regulate the policies to control the number of co-sharing spaces in market and thus, this will also affect the operators. However, companies could also rent out underutilized spaces for additional source of income.

Types of Strategies

They could locate the co-sharing workspace and set up within the urban walkable area with neighboring business and drive the economy to success. They could also carry out some promotions and partnership with the existing businesses to gain regular members from them. They could also provide users with different experience from the other competitors. Essential facilities are necessary to retain the members as well.

Development and trend of Co-sharing workspaces

With the new technologies and work practices in place, office environments are constantly evolving since 1980s where there is only an office and desk till today with the existence of co-sharing workspace. Emerging companies use this means to expand their businesses, providing managed space infrastructure, employee facilities and partnered space. This technology driven ecosystem enables them to minimize cost in terms of manpower, finance & accounting, legal and PR through shared costing which is beneficial especially for startup and SMEs with less funding available. According to US report, the number of co-working spaces around the world has increased by nearly 700 per cent since 2011. Globally, an estimated half a million people work in more than 7, 800 shared workspaces today and expected to rise to 37, 000 within the next 2 years, an escalating trend of demand. Co-sharing spaces had encouraged flexibility, adaptability and boost efficiency. It also helps participants build up network and share valuable ideas. Employees will feel less stressed up and hence, productivity improved.

Economic & Social Impacts and their risk & Initiatives to take

Economic

Neighboring businesses such as coffee shops, local stores will benefit as it attracts more people to the stores which eventually boost economy growth. However, rental prices for traditional businesses or surrounding areas will increase. Hence, government should regulate the areas by controlling the number of co-sharing workspace constructed and impose restriction to prevent subletting of premises.

Social

Co-working space will add social value to the working environment through social interaction which may have been diminished in the natural communities due to the hectic and fast pace of the society. However, this could also result in security breaches where people with different employers come together without knowing each other. Hence, there is lack of transparency and openness. Therefore, companies need to take extra precaution to ensure that their valuable assets (intellectual property, confidential data etc. ) are protected.

Advise in launching/investing in co-sharing space

All in all, with the rising trend in co-sharing workspace, various considerations should be made. They should consider on how to compete with upcoming companies to stay relevant and remain sustainable as well boost their revenue growth. They should also consider the locations and try to partner with established companies for publicity and emerging growth.