Co-working spaces have grown massively over the years, and the United States projects 3.8 million users in 2020. And while the concept is relatively new in Asia, it’s also fast catching up.
Why are startups attracted to the idea of a shared office?
Forbes has an insightful article about it, citing seven of the best reasons. These include lower costs, fewer commitments and responsibilities when it comes to maintaining an office, network opportunities, and even resistance to the traditional office setup and culture.
But there’s a far bigger question one needs to consider: will startups thrive in this environment? In other words, can they sustain the same culture within the next months or even years? To answer this, we have to consider the following factors:
1. COMPANY GROWTH
Not all startups succeed. In fact, many of them die even before they can get past their incubation period (especially for techs). This is understandable as some ideas just don’t work at all. But a lot of them do experience growth, which means they have to bring new employees in.
According to Open View Partners, startups tend to hire at least 5 employees during the product-building phase. Once they move to the building stage, they are more likely to have (or need) 25 employees.
Supposing a co-working space has about 5 startups, and each has the magic number of workers, it could mean 125 people users at any given time of the day. That may make any shared office feel a bit crowded with not enough facilities to serve everyone.
Note though that this all depends on the size of the shared office. Co-working spaces in Jakarta can cover hundreds of square feet with ample administrative staff to provide support for all its users.
In Indonesia, no business, including a startup, can complete company registration without a traditional office space, which shared offices in Bali can fulfill. Companies can pay minimal fees while still complying with the law. However, regulations in the country can change from time to time, and it’s possible it may no longer allow businesses to share spaces with others.
3. MILLENNIAL CULTURE
There’s no doubt millennials are going to be the biggest influencers to everything, from financing to the way the world is going to do business and work. In Southeast Asia, these people are driving tech growth.
But while we already know the young people today are tech savvy, less is known about the kind of office culture they want to be part of.
According to Living Office Vice President Greg Parsons (speaking with Inc.com), millennials value two things: relationships and creativity. They want a space where they can be the most productive, which explains why the likes of Google are attractive. Though these Silicon Valley companies have lobbies and funky meeting rooms, they also have pods and spacious outdoors where employees can be left alone and contemplate.
On the other hand, millennials like to build communities and collaborate, which make co-working spaces in Indonesia suitable for them.
So, Will They?
It seems like co-working office spaces in Indonesia have been built for startups as they address the most immediate needs: cost effectiveness, accessibility, and relationships. But at some point, once they get past their beginning phases and grow, there’s a high chance they are going to value exclusivity and privacy even more.
Either way, startups in Indonesia can count on Cekindo to provide the right type of office perfect for their business setup. We have co-working spaces in Bali and Jakarta not only equipped with business facilities but also administrative support. Growing companies, meanwhile, can take advantage of our private offices for reasonable fees.
Email us at [email protected] and let’s discuss.