In recent years, India has seen a remarkable surge in startups and entrepreneurship, driven solely by innovation, technological advancements and, notably, an unwavering spirit of enterprise. Parallel to this boom is the rise in the number of incubators and coworking places. These co-working places and incubators have played a pivotal role in the startup boom in India. These institutions not only provide a space in place of offices but also provide much-needed support, providing support and new opportunities. These places provide new startups with an opportunity to grow their business even when they lack resources.
Co-working has changed the way Indian businesses work. According to JLL India, the coworking sector is expected to see 40% to 50% YOY growth, and the total number of co-working seats will increase to 1.2 million by 2025. The growth is a testament to the revolutionary impact of co-working spaces on new businesses and startups. One of the major benefits of co-working places is that they are very cost-efficient. For startups, cost-cutting is the most hectic job, especially in metropolitan areas like Mumbai, Bengaluru, and Delhi-NCR. This allows startups to spend less on office space and pump all of their funding into areas that will help the brand grow. Co-working offices also provide a good opportunity to interact with people and create a trustworthy and reliable network of professionals, entrepreneurs, potential clients, and investors. This collaboration often results in partnerships or joint ventures.
Co-working spaces in India typically have occupancy rates of around 90% to 100%, indicating high demand. Because of high demands, Indian co-working spaces have all the amenities one can imagine. From high-speed internet to meeting rooms and event halls, co-working spaces generally have everything they need to accommodate their clients. However, there is another reason co-working offices are cost-effective and popular in the startup ecosystem. The reason is flexibility. Co-working offices offer flexibility in terms of time and space. An entrepreneur can select their office timing according to their needs. For instance, the same office space can be used by a startup during the day and a totally different startup during the night. Moreover, entrepreneurs can also select exactly how much space they need, whether it’s just a small table or a whole floor; shared offices have something for everyone.
Another important part of the booming startup equation is incubators. Co-working spaces provide physical support to startups, while incubators help them grow their businesses and streamline their operations with the help of the most relevant and true-to-industry insights. According to Tracxn, there are around 815 incubators in India at present, and these incubators play a major role in the success of startups. Incubators connect emerging startups with mentors who offer valuable insights and guidance. Along with this, many incubators have strong ties with venture capitalists, angel investors and other kinds of investors, which helps the startup secure the much-needed funding to expand their business further. They also provide access to a wide range of resources. One example of this will be providing lawyers for any legal troubles.
One example of a startup that went big after working in a small shared office in Bengaluru is OLA. With a humble beginning in Bengaluru, OLA has become the biggest home-grown company in cab booking apps. The availability of networking and apt mentorship allowed the company to make a name for itself and quickly become one of the leading businesses in India.
The government of India has also played a significant role in the startup boom. Initiatives like Startup India and AIM (Atal Innovation Mission) have provided startups with resources, funding and much-needed mentorship and leadership. The Atal Incubation Centre, or AIC, has been nothing short of instrumental in nurturing innovative startups across various sectors.
In 2020, the Ministry of Small, Medium, and Large Enterprises launched the ‘Champion’ initiative, which aims to provide a single-window platform for addressing the grievances of MSMEs and facilitating their growth.
The rapidly growing co-working infrastructure is a testament to the growing landscape of startups and entrepreneurship in India, which is only going to become a barrier. However, unexpected challenges can pose a pretty significant risk. One example of such an unexpected challenge is the COVID-19 pandemic.
