Why are flexible workspaces key for SME and start-up growth?

The Federation of Small Businesses (FSB) recently called on the government to support the creation of 500,000 new small businesses by 2028 following research into the growing number of self-employed individuals helping driving economic growth in the UK .

The organisation has subsequently drawn up a list of recommendations to assist those wanting to start their own business, and identified the barriers to entry for new entrepreneurs. These included:

The research also identified one of the principal motivators for starting your own business was to achieve greater work/life balance and the flexibility it provides, with 53% of small business owners citing as a reason to start their own business.

Taking these ambitious targets into account, Aman Parmar, Head of Marketing at Bizspace – the UK’s largest provider of flexible workspaces, shares his thoughts on how start-ups and SMEs looking to establish their offering and scale-up can utilise flexible workspace solutions:

“For the majority of new businesses, cash flow is an issue. It can be difficult to rent traditional office space during that initial period where income is uncertain, and the core focus on founders is to market the business and promote their products or services.

“This is where a flexible workspace can help start-up founders establish their companies in a cost-effective manner. By providing access to collaborative open spaces and shared areas, these workspaces team facilitiate teamwork and foster innovation during those crucial early stages. Helping comapnies cultivate a strong company culture through the shared environment.

“Flexible workspaces are by no means a new concept, yet the Covid pandemic did accelerate how many start-ups and SMEs were able to take advantage of the benefits. They have essentially been reshaping the market and industry of commercial real estate for some time now, as they provide greater flexibility and less liability.

“Traditional leases on office space come with costly legal fees to set up, large deposits, and lengthy commitments. This may be untenable for micro SMEs and certain larger SMEs, only available for established companies with significant financial backing.

“Our position has always been one of supporting UK’s businesses with tailor made workspaces. For example, we offer smaller two month deposits (typically 6 months or longer with leases), simple and flexible short term licence agreements, and in certain cases, we can help tenants arrange small business rates relief.

“For successful start-ups looking to scale their operations, many flexible workspace centres boast varying sizes depending on the stage of the business, and how many team members are being hired for growth. Some smaller units are suitable for just a couple of employees, while the larger options can offer the workspace for hundreds. The combination of these benefits mean a start-up can rent a small unit through a flexible workspace provider, only to scale up quickly into a larger unit in a short space of time. Compared to the more traditional lease arrangements, this is far more beneficial and helps tenants grow their business at a pace that suits their needs.”