Coworking&Co: preferred workspaces for freelancers and SMEs

Increased workplace flexibility is becoming increasingly important, particularly for the younger generation. Freelancers and employees of micro-businesses and SMEs are looking for an environment that combines accessibility with a sense of community. Many are turning to coworking spaces or satellite offices as viable alternatives.

Working together and independently

The term coworking, which was first coined in 1999 by American game designer Bernie De Koven, refers to a new way of working that encourages collective, autonomous and non-competitive work within a shared space. Coworking spaces offer freelancers and other independently minded workers the freedom to work alone or in teams on their projects.

Today, these spaces offer shared or private offices, meeting rooms, catering facilities and more relaxed environments. Some of them even have gyms. Resources are shared, fostering creativity, experience sharing, and networking.

This innovative trend, driven by a combination of niche operators and property developers, began in Europe, with Berlin’s C-Base for the IT community opening in 1995. Coworking then spread to the US in 2005 and France in 2008.

By 2016-2017, coworking spaces had proliferated in Luxembourg, particularly in the capital, due to the country’s strategic location, expatriate population and multilingual and multicultural environment.

Advantages for SMEs and freelance workers

Initially designed for freelancers and start-ups, coworking spaces now attract micro-businesses and SMEs. These environments offer flexibility and a range of services, such as booking a room for client meetings and providing access to office equipment and IT tools, all included in the price. Rental and contract durations can be customised to individual needs, offering, for example, the possibility of setting up and refurbishing an area as a permanent office at a lower cost than traditional offices.

The main advantage of coworking lies in its community aspect!

But the main advantage of coworking lies in its community aspect. These friendly spaces are strategic locations for networking and building relationships with other freelancers and small businesses. They often serve as a launch pad for entrepreneurs trying to build a long-term business. Their accessible locations can also be a significant advantage.

Coworking trends

According to the study 2024 Coworking Space Trends Explored and Explained by Experts, several trends are shaping the future of coworking spaces.

• • Community connection: coworking spaces are increasingly becoming dynamic communities prioritising collaboration and shared experiences through organised events, etc.
  • Flex living: these spaces are evolving to blend work and life seamlessly, promoting a “flex living” lifestyle focused on community, sustainability and well-being for remote workers. Some now include co-living options, where young workers who share this philosophy can share their living space as well.
  • Eco-friendly coworking: coworking spaces are going green, with increased attention to ecological practices and collective well-being (green roofs, natural lighting, fitness centres). The aim is to have a positive impact on the community.
  • Technology: smart technology like AI is enhancing the coworking experience with features such as smart buildings, virtual meeting rooms and digital networking platforms.
  • Rural & themed retreats: coworking is expanding beyond major cities to rural areas near borders. Some of these spaces are built around themed hubs and specifically encourage cross-border coworking, and others offer the concept of satellite offices for larger organisations.

Satellite offices: an alternative for cross-border workers

Satellite offices, increasingly favoured by large companies, also attract SMEs. These offices offer greater flexibility for employees by decentralising workspaces from the company’s head office to border locations. This solution is especially popular with cross-border employees, who benefit from shorter commutes, saving valuable travel time and avoiding tax penalties. For SME managers, this means both lower rent costs and the ability to attract talent deterred by long commutes.

Alternatives to the traditional office are springing up all over Luxembourg. Whether for networking with other entrepreneurs and companies, increased flexibility or having a unique experience, coworking spaces and satellite offices offer numerous advantages for freelancers and SMEs.