Co-working: 5 reasons why it is the false El Dorado
For quite some time now, we as entrepreneurs have heard all about the benefits of co-working. Hell, who in their right mind wouldn’t relish the opportunity to develop the next big idea in the middle of Rocketspace’s open space, where Uber, Spotify and so many other unicorns once saw daylight! Shiny MacBook Pro’s on large wooden panels. Successful and like-minded entrepreneurs running around. Fancy kitchens, lounges, conference rooms. And all that for the mere sum of $850 a month for a single desk in the heart of San Francisco.
But unfortunately, as many of you know, life for an entrepreneur in a co-working space isn’t as glamorous as the one described above. Here are 5 reasons why I believe co-working is not the El Dorado it pretends to be.
1. The network mirage
Nowadays, people work with a pair of noise cancelling Bose headphones and a computer. Notwithstanding the casual events hosted or the semi-regular afterwork drinks, one does not bump into and chats with new available talent at every corner in a co-working space. The promise of an ever-expanding network is merely entertained by a plethora of social events.
2. Communities: pros and cons
A co-working space aims at creating and developing a community. But as a member of such a community, the entrepreneur renting a desk in a co-working space becomes defined by the status of this particular co-working space. For example, a co-working space setting up in a remote location to offer cheap prices will attract start-ups with little means, often amalgamated with non-successful start-ups. This means an entrepreneur renting a desk there will easily be associated with little success. Thus how well a co-working space performs becomes a potential measure of how well an entrepreneur will do. Ultimately, this means the entrepreneur becomes dependent of the co-working space he is part of — this drifts away from the meaning of being an entrepreneur.
3. Efficiency is key
Being an entrepreneur is about getting stuff done, i.e. being efficient. And it is undeniable that there is an ambient feeling of emulation as one is surrounded by people putting countless efforts into their start-ups. But glamorous and fancy facilities with a multitude of distractions at hand rarely foster efficiency. If working sprawled in a beanbag next to people playing Ping-Pong were key to success, we’d probably know it by now.
4. The limits of temporary solutions
Co-working space are meant to be a temporary solution for start-ups to have their first office space, not a long-term solution aiming at providing offices for a mature company. Therefore, the most successful start-ups will eventually leave, and only the less successful ones remain. This means two things. On the one hand, the attractive side of networking within such a co-working space will decrease over time, as its leading elements will move to some other place. And on the other hand, a start-up’s lengthy stay unfortunately becomes a bad signal as it hints that the start-up does not grow as well it should.
5. Digital economy trends
Co-working is feeding on a trend in which people trapped in the loneliness created by the digital economy desire to be part of something. Therefore, it creates a false, or to say the least weak, sense of belonging to a community as it unites lonely people together without them sharing mutual interests but only the need to work somewhere outside their home. Put it simply, it is an alternative to a coffee shop or a library. In my view, an entrepreneur is better off with an incubator. Trading good advice for a few percent of equity — which statistically has little chances to be worth a lot one day — is a smarter move than spending hundreds of dollars of the few grands a start-up has on a simple desk, unlimited coffee and a few new acquaintances.
Theory, theory… What about real life?
The reasons above are very theoretical, I will give you this. But to me, they are the underlying reasons as to why the co-working business model is flawed. And therefore why it has failed to offer a sustainable solution to entrepreneurs and people without office space. But let’s take one last look on a more practical level. A co-working space is, unsurprisingly, always noisy to some extent. Yet, despite the noise, one cannot speak out loud to his team and colleagues without bothering the community or risking sharing confidential info. Thus teamwork and communication are fairly limited. Quite contradictory for a place aiming to promote emulation and networking, no?
