There are numerous shared offices sprouting up in India tailor-made to suit the needs of emerging ventures to aid the growth of the startup ecosystem. These coworking space providers do a lot of innovation, invest in the start of the art infrastructure and come up with the best of the plans to suit the needs of the clients. The growth of these shared space providers shall not be overshadowed by the challenges they face.
While they ask for a nominal lock-in period from their clients, they are already into long-term rental agreements with their landlords to ensure they don’t have to empty the space when they might need it the most for their clients.
It’s only due to the emergence of coworking spaces that the concept of fixed-term rent had a fall. In a coworking space, you just pay for the membership fee for the plan you chose. On the darker side, most of these spaces are on a revenue-sharing model with their landlords. This is another reason why such spaces don’t earn much.
Despite many efforts, the clients tend to move from one coworking to another and it becomes tough to retain them. The clients may or may not be there but the power bills, asset maintenance and other expenses are always borne.
Today, when the pandemic has hard-hit the economy, the ones who support the economy are falling. Not just the startups, but SMEs, freelancers and even big companies work from coworking spaces and if they couldn’t survive, it’s going to be really hard for all of the clients.
It’s only the government that can support the support system of our budding entrepreneurs. No relief in fixed rentals, revenue-sharing and utility bills might lead to the extinction of those spaces where many new and old businesses thrive.