The coronavirus pandemic has pushed the global economy into recession. Economists across the world are predicting the worst economic recession in history, as countries struggle to contain the deadly virus. GDPs are plummeting, and unemployment rates are rising worldwide.
Businesses, from large corporations and MNCs to small companies and startups, are forced to make significant operational and structural changes. Many organizations have embraced the work-at-home model, as offices are the top contenders for spreading the virus. People are focused on avoiding activity or place that encourages social interaction.
It brings us to an important question: Can co-working spaces still survive when social distancing is mandatory?
It most certainly can. Even though co-working spaces are currently facing reductions in revenues and memberships, they have an enormous potential to benefit. Economists and experts observe that a recession and the work-at-home situation can open up new opportunities for co-working spaces. Currently, co-working spaces are empty, and many have shut down due to a lack of demand. But this situation is expected to reverse as people thrive in social settings and seek out co-working situations.
In this article, we will discuss the potential benefits co-working spaces can draw from the ongoing pandemic and recession.
Here, take a look at these points:
1. WORK FROM HOME CULTURE
In the wake of the pandemic, administrations and businesses are fighting uncertainty, which has given rise to the work-from-home model. It is an attractive and feasible solution to maintain operations and productivity in the immediate future. Twitter, amongst other corporations, is allowing its employees to work-from-home permanently.
Apple and Facebook have also extended their work-from-home operations until 2021. The demand for co-working spaces in Australia is also increasing as remote workers need a professional environment. Organizations and professionals are increasingly embracing teleworking, and co-working spaces play an instrumental role in this transition towards remote working.
They provide remote workers with an organized and systematized space where they can operate and network within the industry.
2. DE-DENSIFYING OFFICES
De-densification is instrumental in ensuring a smooth transition out of the crisis and towards recovery. Organizations are likely to explore practical solutions to de-densify their offices and operations to future disruptions and safeguard their employees. Major corporations and companies are already taking measures to relocate their employees and operations to co-working spaces.
As the economy moves towards recovery, the trend of de-densification and relocation to co-working spaces also expected to increase. Businesses are likely to position their employees across multiple co-working spaces to reduce their expenses and avoid over-densification. Corporations have realized the benefits and cost reductions of remote working, and this trend is likely to continue in the future.
Remote working and co-working spaces go hand-in-hand because professionals need a supportive and facilitative environment. Many small businesses and startups that forced to shut down can also rely on co-working spaces. They can position their operations temporarily to save money and recover from the recession.
Many professionals are just getting comfortable with remote work. They realize the comforts and flexibility associated with working at home. However, eventually, millions of work-at-home professionals will seek to escape their home environment and work from a different environment. They will be attracted to co-working spaces where they can practice social distancing without being confined to their home environment.
3. LIFELINE FOR SMALL BUSINESSES
Co-working spaces are not only crucial for freelancers and teleworkers. They are an essential lifeline for small businesses, startup entrepreneurs, and self-employed professionals. They serve as a supportive environment that offers structured discipline for coordination and allows greater affordability.
Countless entrepreneurs are unable to rent office spaces and rely on co-working environments to sustain operations and enhance productivity. Co-working spaces can play an instrumental role in coordinating resources and offering community support to small businesses. They can aid small business owners in exploring grants and governmental schemes.
Co-working spaces can also function as a bridge between local business networks and small businesses. They can provide them enhanced access to government schemes, grants, and local organizations dedicated to relief. Co-working spaces ideally positioned to coordinate the relief resources offered by various local funds and organizations.
They can utilize their peripheral connections and positioning to aid freelancers, remote workers, and small businesses.
4. COMMUNITY SUPPORT
Co-working spaces create a community where remote workers and small business owners can cultivate trust, grow, and build relationships. They are dynamic economic engines that fuel the financial stability and market presence of millions of professionals. Co-working spaces create employment opportunities; they allow businesses to save money and raise equity capital.
Once the COVID-19 crisis boils over, federal and local leaders will work towards creating jobs and restoring office spaces. Co-working spaces will play an instrumental role in recovering the corporate community. Community dimension is significant for allowing a smooth recovery, and co-working spaces will aid in restoring the balance.
The recession has hit hardest on small businesses and startups, and co-working spaces will facilitate restoration. They will help entrepreneurs and professionals regain their stability by offering social networks and industry connections.
It is essential to understand that return to normalcy after the lockdown won’t be easy. Many businesses won’t be able to reopen, and countless entrepreneurs will struggle to raise capital and cover losses. Community support and strength will be crucial in rebuilding networks, reconnecting with associates, and restoring the economy.
Co-working spaces are community hubs that offer support and create a facilitative environment. They will be instrumental in rebounding from the coronavirus pandemic and transitioning towards normalcy.
Presently, all businesses are navigating through uncertain times with depleted revenues and increasing losses. The global industry has embraced numerous adjustments and extensive restructuring to cope with the crisis. Co-working spaces are a vital ingredient in this restructuring as they will facilitate local economies and act as community hubs.
Co-working spaces are local economic engines that support remote professionals and entrepreneurs, and their significance is likely to increase. They will play an instrumental role in recovery and rebound, as businesses work towards restoration and growth.