The Australian mid-market sector is pursuing a growth agenda, with almost three-quarters (72%) actively seeking additional funding or investment, according to fresh research from business management platform MYOB. Of those that are, the top reasons for investment are to expand operations and cover more territory (66%), pivot the business in a new direction (49%), or employ more team members (48%).
The survey of more than 500 business leaders and decision makers from the Australian mid-market (20-500 FTEs and $5m+ annual revenue) - a sector that contributes just under a quarter (23%) of the nation’s GDP - reveals 83% believe there are opportunities in the segment for investors.
MYOB Executive General Manager – Enterprise & Practice, Kim Clarke, says that the new insights highlight the strength of the mid-market.
“The mid-market continues to punch well and truly above its weight and plays a vital role propping up the economic performance of the nation. The research shows that the segment remains resilient and confident, with businesses demonstrating strong performance even the face of the recent soft economic period.
“Despite often flying under the radar, businesses in this segment consistently invest in their operations to perform faster, better and stronger. They’ve got serious ambitions to take their operations to the next level and are clear on the strategies and pathways that will help them get there.”
More than half of the business leaders polled (52%) report an increase in revenue over the past 12 months, compared to 7% who saw a decline. This is significantly stronger than the findings revealed in the latest MYOB Bi-Annual Business Monitor, released in June this year, which found 22% of smaller businesses (0-199 FTEs) saw their revenue increase and 33% experienced a decline.
Growth is expected to continue for the mid-market, with 53% of leaders polled forecasting their revenue will be up in 12 months’ time. Businesses are also making stronger returns, with 56% saying their profitability has improved over the last 12 months, while just a quarter (25%) saw their business’ profitability decline.
The mid-market is also confident about the prospects for the broader economy, with 57% of respondents expecting the economy will improve in the next 12 months, and more than a fifth (21%) predicting that improvement will be significant.
“This is a determined, strong segment of the Australian economy that is focused on growth, aiming not just to achieve revenue increases, but to gain a larger market share and expand from a local to a national level, or even become an international business over the next five years.
Out latest insights show that part of what is driving that growth is a strong emphasis on innovation and technology. Looking to their innovation investment in the coming five years, a third (34%) will prioritise AI tools. Other areas of focus are digital security (23%) and use of data and analytics (22%), as businesses look to leverage data securely at scale to tap into the accelerating leaps in technology.”
Over the next 12 months, mid-market businesses will focus their innovation investment on new product development (31%), digital security (30%), and supply chain development (26%).
“Mid-market businesses are resilient, competitive and ambitious – and now more than ever, they have to be. Having grown from small business they are now snapping at the heels of larger enterprises.
“They know that growth is crucial, and investment in technology is key to ensure their businesses remain resilient and continue to scale.
“We want to see every business reach its potential, and the mid-market sector is leading the way in Australia, creating investment opportunities and significant GDP contribution along the way.”
ENDS
For more information, please contact:
Sarah Green, Character + Distinction, sarah@ofcharacter.com
Selina Ife, MYOB, Selina.Ife@myob.com
About MYOB Acumatica
Designed specifically for mid-sized businesses (20-1000+FTEs), the MYOB Acumatica platform harnesses award-winning technology, industry specific workflows and hands-on support from local experts to unlock insights and drive growth. The scalable platform connects finance, sales, inventory, production, and employee workflows all in one place and is tailored to the specific needs of A/NZ businesses. The cloud-based ERP platform has also been independently recognised by multiple awards as a leader in innovation. Accolades include: finalist in the global SaaS Awards (2022, 2023, 2024), ABA100 Winner in The Australian Business Awards (2022, 2023) for ERP Innovation and Cloud Innovation, and shortlisted for Best Cloud ERP/Payroll Solution and Best Platform as a Service for The Cloud Awards (2023).
About the research
Research for MYOB’s Mid-Market Snapshot was conducted by Dynata. A total of 506 mid-market business leaders and decision makers (with between 20-500 FTEs and $5m+ annual revenue) took part in the survey. Respondents were sampled from the Dynata online business profile panel sources, and screened to ensure they met the qualifying criteria. The survey was conducted between 6-30 September 2024.