Focus on passion, purpose, funding will follow: Adam Neumann

WeWork to open in India soon, says founder Neumann; says social purpose more important than profit

As the question funding for start-ups becomes all-important, Adam Neumann, co-founder of New York-based shared workspace provider WeWork told India's young entrepreneurs that creating wealth should not be considered more important than social purpose.
 
While agreeing that a sustainable profit structure was important for a new business, he said young people ran the risk of feeling unhappy early on their lives if they attached greater importance to money.
 
WeWork, which manages workplaces, has been hailed as one of the most innovative start-ups globally. It is currently the largest lessee of office space in the United States. Neumann, who is visiting India for the first time, said the ecosystem for start-ups is clearly growing and that raising capital won't be a problem until the business model is able to become sustainable.

 

He said recent studies show that almost 60% of millennials – persons who reached adulthood after the year 2000 – worldwide are willing to work for a company which has a dedicated social purpose rather than earn more at one which has no such motives. Since this demographic group is currently on the cusp of joining the job market, Neumann said it was very significant more India with its large young workforce.

While other players aim at increasing job efficiency and productivity, WeWork takes a different route to that end.
"By focusing on the people who share the same space every day, we can create a sense of community. Relationships forged lead to a happier, more stable workplace," Neumann said.

 This holistic approach to business is at the core of the company's policy of partnering with businesses who share the same value system and an objective of social connectivity while developing a workplace, rather than simply selling or letting out the workplaces they manage. 

This has allowed the company to improve its brand status by letting potential customers seek them out rather than the other way round. 

Neumann believes in the concept of a capitalistic kibbutz – typically a communal farming settlement in Israel – where the fruits of the open market system are spread out as much optimally as possible to employees who share a sense of community akin to what is present in the kibbutz itself.

WeWork has also distinguished itself as an important player in the 'sharing economy' which aims at pooling of economic resources to bring down costs by business. The company offers office spaces moderated by demand and pricing to enterprises who are unable to afford the high costs of renting or buying office space.

Neumann said India was on his list and would soon see a WeWork space; the company is currently in 7 countries and manages 17 million square feet of office space. While either New Delhi or Mumbai will be the site of its India operations, Neumann said he was interested in Tier-II and -III cities as well, which have their own share of challenges, including mindset and infrastructure.