The focus of this research is in the area of co-working spaces. Such a study is important in order to enhance the understanding of the growth of co-working spaces in Egypt. Coworking spaces as startups have seen wide expansions worldwide in conjunction with the evolution of the shared economy, start-ups, and entrepreneurial projects and the labor market trends of freelancers and part-time employees. The research approach adopted in this paper is a qualitative approach. Semi structured interviews were conducted with a convenient sample of coworking space managers or founders in Cairo and Alexandria, the main two cities in Egypt which have the largest number of coworking spaces. The interviews aimed to explore their practices, choice of business model adopted among several ones to generate revenue and the challenges faced in running the coworking space. Thus, the questions focused on asking the interviewees to explain the business model adopted by the space as well as the services and networking they provide in addition to the challenges they face in running the business successfully. The findings in this paper revealed that coworking spaces in Egypt are constantly modifying their business model to adjust to market conditions in order to achieve profitability. Thereby, coworking spaces are still in their infancy stage and are subject to many changes and evolutions to meet the market trends. Furthermore, the financial viability and profitability are at stake and founders are adjusting their services and pricing accordingly. Among other results, high employee turnover was highlighted frequently by the managers during their interviews. The academic contribution relies in adding to the coworking space literature with respect to challenges faced in developing countries. The practical implications of this research offer actionable knowledge for coworking space managers and founders to provide the services and activities that would attract their target user and increase their loyalty to the space since users such as small companies have different needs from freelancers and part-time employees.