Australia’s mid-market – in need of a growth mindset
20 May 2018
Australia’s mid-sized businesses are not geared for growth and it could seriously impact the nation’s economy, reveals a new report by MYOB.
The tech business surveyed 276 bigger businesses across the country for the new MYOB Enterprise Insights Report - Transforming the Mid-Market. The report focused on the performance, management structures, plans for growth and investment in innovation and technology of businesses ranging in size from mid-sized operations with 20 staff to large-scale enterprises with more than 1,000 employees.
A crucial sector
MYOB general manager of enterprise Carolyn Luey says the mid-market is crucial for Australia’s long-term growth prospects, employing around a third of Australia’s workers.
“This sector should be where our country’s next big success stories are coming from – particularly on the international stage,” Ms Luey says.
“Despite some strong returns in 2017, they appear to be falling well short of their capability - constrained by limited support, a significant skills shortage, poorly developed internal structures and, in some cases, a lack of ambition to truly reach their considerable potential.”
According to the MYOB Enterprise Insights Report, 44 per cent of Australia’s mid-market operators said their revenues had grown in the last year and more than half (53 per cent) forecast that their revenue will increase over the next 12 months.
Most enterprises not gearing for growth
“While they’ve been successful, most enterprises aren’t geared for growth or thinking about the future,” Ms Luey says.
Amongst the findings is an alarming trend that almost a quarter (22 per cent) spend less than 1 per cent of revenue on R&D, and almost a third not budgeting for it at all. Furthermore only 12 per cent of businesses surveyed count growth as one of their top three long-term business goals.
“There’s clearly more our mid-market sector can do to realise their potential – from introducing technology, investing in research and development, to streamlining operations and leveraging the benefits of expert, independent advice to address the pressures they are facing.
“But they can’t do it all on their own,” she says.
“If our community – from government, to investors and business commentators – can focus more on the needs of the mid-market, we are far more likely to be able to provide them with the resources, support and investment required to maximise the benefits they can bring to the whole economy.”
“We’re working with business leaders in the mid-market to help ensure the whole economy is geared for growth, and to help foster our next wave of business superstars.”
To download a full copy of the MYOB Enterprise Insights Report - Transforming the Mid-Market, click here.
For further comment or other information please contact:
Selina Ife, Media Relations Consultant, MYOB
M: 61 488 044 237/ E: firstname.lastname@example.org
MYOB Group Ltd (ASX: MYO) is a leading provider of online business management solutions. MYOB makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB operates across three core segments – Clients and Partners (business solutions to SMEs and Advisers); Enterprise Solutions (larger businesses) and Payment Solutions. It provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly through its Connected Practice Strategy and through the development of the MYOB Platform. For more information, visit http://investors.myob.com.au/Investors or follow @MYOB on Twitter.