Why Do Startups Choose Coworking In Developing Countries? Case Study Of Nigeria

Globally, coworking has significantly grown with the turn of the decade. This growth has been significant in developing countries like Nigeria in part as a response to the nascent startup economy that needed inexpensive space, infrastructure and technical support on growing their businesses. Few were aware of the coworking concept in general and the idea struggled to gain traction in these early years. Starting in 2016, Nigeria’s economy would go into a 5-quarter long recession which would heighten the need for companies to keep their expenses low. This meant a definite demand for more technology, fewer hands and inexpensive workspaces. Coworking service providers moved in to fill the need and have since grown from less than 10 in 2010 to well over 100 in 2019. By providing access to convenient working environments, respectable office addresses, strong infrastructure, a network of budding entrepreneurs and funding by venture capitalists, Coworking spaces are establishing themselves as the de-facto business community. Per square metre prices for standard office spaces remain out of reach to the average startup. But what are the reasons and features startups like most about coworking? We carry out surveys why startups choose coworking in developing countries, with a special focus on Nigeria.