Australia’s mid-market firms want to expand across the country, pursue new business strategies and hire more staff, and securing more funding or investment to make these plans a reality is at the top of their Christmas wish list.
According to new research from business management platform MYOB, an overwhelming proportion of mid-market firms in Australia (72%) are actively seeking fresh funding or investment right now.
MYOB defines the mid-market as companies with between 20 and 500 full-time equivalent employees and with at least $5 million in annual revenue.
Of this 72%, the top reason businesses are seeking to bolster their coffers is to expand their operations geographically to cover more territory (66%).
This is followed by the 49% of the group that want to pivot their operations to a new direction, and the 48% that want to grow their headcounts by hiring new employees.
The research is based on a survey of more than 500 business leaders and decision-makers from mid-market firms, conducted throughout September 2024.
Perhaps unsurprisingly, 83% of this cohort believe there are opportunities for investors in the mid-market, which is estimated to contribute around 23% of the nation’s gross domestic product (GDP).
It’s a segment of the business community that “continues to punch well and truly above its weight”, said Kim Clarke, MYOB’s executive general manager of enterprise and practice.
“The research shows that the segment remains resilient and confident, with businesses demonstrating strong performance even in the face of the recent soft economic period,” she commented in a statement provided to SmartCompany.
“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.”
The mid-market is a “determined” and “strong” group of companies, said Clarke, and it appears this focus is paying off.
More than half of the business leaders surveyed by MYOB (52%) said revenue in their business had increased over the past 12 months, which is well above the 7% who saw revenue decline. A similar amount (53%) are also forecasting further revenue growth in the coming 12 months.
Similarly, more than half of these mid-market firms (56%) have made more profit over the past 12 months, while a quarter (25%) saw their profitability decline.
There is a sense of optimism too, with 57% of those surveyed saying they expect the Australian economy to improve over the coming 12 months, and 21% suggesting the level of improvement will be “significant”.
Mid-market firms were also asked about their plans to invest in innovation and technology over the next five years.
Investing in artificial intelligence (AI) topped the list, at 34%, followed by digital security (23%) and the use of data and analytics (22%).
In the shorter term, 31% of these businesses plan to invest in new product development over the next 12 months, while 30% want to increase their investment in digital security and 26% want to further develop their supply chain.
“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,” added Clarke.
“They know that growth is crucial, and investment in technology is key to ensure their businesses remain resilient and continue to scale.”
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News Editor
Prior to joining SmartCompany, Eloise was news editor at Books+Publishing, the trade press for the Australian book industry. Eloise has degrees in media and communications, marketing and business management, and political science. You can follow her on Twitter at @ellykeating.
