14th December, 2022
Despite ongoing supply chain challenges and rising costs, most mid-market operators in the region have had a strong calendar year — especially in New Zealand.
Lockdowns and border restrictions may have rolled back in 2022, but uncertainty has remained a major concern for business owners and individuals alike.
To find out how economic factors may have impacted mid-sized businesses (those employing 20 to 500 full-time staff), MYOB commissioned two surveys, each polling over 500 leaders or decision makers from mid-market businesses in both Australia and New Zealand.
The survey, dubbed the MYOB Mid-market Snapshot, was conducted between late October and mid-November. It asked respondents questions related to business performance in 2022 compared to the previous 12 months, as well as what their outlook for 2023 was.
MYOB’s Head of Go-To-Market Jo Tozer explained New Zealand’s mid-market often flies under the radar because of the size of the sector compared to others, but that these indicative results for 2022 show this business category is a force to be reckoned with.
“From our latest insights and conversations with our customers, it’s evident that many mid-market businesses have proven to be incredibly resilient, despite the enormous disruptions and challenges that have been felt across the economy this year,” said Tozer.
“There are more than 13,000 mid-sized businesses in New Zealand and the continued success of this sector is extremely important — particularly given their growth ambitions and employing power as we head into another challenging year.”
As costs rise, businesses naturally look to their pricing strategy to absorb those costs and the mid-market category is no different.
In fact, 78 percent of NZ respondents indicated they plan to increase their prices in the coming three to six months, along with 75 percent of Australian operators.
“Despite impressive performance this year, our insights suggest mid-sized operators are not resting on their laurels and are aware of the need to prepare for uncertainty,” said Kim Clarke, General Manager for Enterprise at MYOB.
“As prudent and experienced leaders, they are looking to make sensible decisions to maintain their operations.
“Eighty-two percent of [Australian] respondents are concerned about the onset of a global recession. This is likely to compound challenges around skills shortages, production, and supply costs, which are the top three reasons given by those planning to increase prices.”
In New Zealand, the MYOB Mid-market Snapshot found 88 percent of respondents were concerned about the onset of recession.
At the same time, concerns regarding cybersecurity were also identified among Australian mid-market operators, where 72 percent of respondents said they have cybersecurity insurance and 78 percent of this group have seen this cost increase in the past three months.
Of those who don’t yet have cybersecurity insurance, 41 percent said they intend to purchase it in the near future.
Nevertheless, Clarke said the resilience and tech-savvy displayed by businesses of this size category are well positioned to face the challenges of 2023 head-on.
“After navigating the past few years, the mid-market is in good stead to face upcoming challenges head on,” she said.
“Their resilience and tenacity will help them navigate future challenges, build their reserves and help their business withstand the impact of whatever comes next.”