How a Coworking Space Differs from a Business Incubator?

Coworking spaces and incubators are high in demand among entrepreneurs, freelancers, and startup owners to set up their own offices. Although both these types of setups are considered to be similar by many, they are different from each other. Do you know how a coworking space exactly differs from a business incubator? This blog outlines the key differences between the two options.

Coworking Space VS Business Incubator – What Are the Major Differences?

Take a look at what differs a coworking space from a business incubator:

Rental Cost 

Coworking spaces offer spaces for rent to tenants on a flexible (monthly, weekly or hourly) basis. On the other hand, incubators are generally free and are cheaper than shared workspaces. Incubators constitute a significant percentage of your company’s equity. Unlike in incubators, you can avail of a variety of additional facilities including free wifi, high-speed internet, cafeteria, lounge and meeting rooms in collaborative workspaces.


As incubators put effort and funding to set up your office, they expect you to grow after a certain timespan. For a proper incubator program, you need to commit for one to six months. Due to flexibility in a shared workspace, you can opt for or cancel membership whenever you want. The coworking concept is mainly about creating a comfortable environment where professionals can engage themselves totally in work.


Coworking spaces do not fund anything to any business in their space and look for investors willing to invest in different events. While incubators provide funding to startups and small businesses that are chosen for their programs. When it comes to financing, both the spaces work in totally different ways.


Shared workplaces and incubators follow their own approaches to network. Incubators give efforts to connect start-up owners with each other. While shared office spaces bring together entrepreneurs with similar thoughts under one roof that lets them connect on their own.


Incubators offer an utterly professional environment as they come with well-trained staff who knows about the start-up ambiance and operations. Shared workspaces also come with good professionals but they are not trained enough to answer business-related questions accurately. They maintain a comfortable and collaborative environment that promotes growth and expansion of small businesses and start-ups.

Both coworking spaces and incubators have their own pros and cons. As now you are aware of the differences between these two kinds of set-ups, you can easily decide which can be the most suited option for your business. If you want to save money, a shared working space can be a better choice as it offers flexibility in rental payments, promotes networking and offers a comfortable environment to work.