New insights reveal New Zealand’s mid-market businesses are heading into 2024 with ambitious plans - buoyed by a solid revenue performance over the last 12 months and increased confidence in the local economy looking ahead.
According to MYOB’s latest mid-market snapshot – a nationwide survey of decision-makers in mid-sized businesses (employing between 20-500 FTEs) – nearly half (49%) of those polled reported an increase in revenue over the last 12 months, while just over a third (34%) said revenue was holding steady at same levels as last year.
Looking ahead to 2024, mid-market business leaders are even more bullish about their prospects, with 62% of those surveyed expecting their revenue to increase over the next 12 months, while just 12% are expecting a decline.
That’s against a background of what they believe will be a growing economy, with almost two-thirds (65%) expecting economic conditions to improve in the next year.
Going for growth
MYOB Head of Product - Enterprise and Practice, Valantis Vais, says the local mid-market remains one of the most ambitious business sectors, with leaders focused and ready to capitalise on an improving economy.
“While the mid-market accounts for a small proportion of total enterprises in New Zealand, these businesses are incredibly driven and primed for action.
“Heading into next year, growth is the number one goal across the board - from increasing revenue, to securing more new customers and expanding their presence in the local market - and business leaders are clear on what it will take to get there,” he adds.
“Team resource, leadership support and the right expertise to drive change are all top factors decision-makers believe will influence their achievement of their goals, making the right combination of knowledge and skills vital to growth in 2024.”
Prioritising investment in productivity
While New Zealand’s economic productivity continues to come under scrutiny, the mid-market could be bucking the trend.
Those surveyed rated their performance, on average, 8.25 out of 10 and the findings show a significant majority see maintaining strong productivity as a top priority.
“With 87 percent of mid-market businesses in New Zealand planning to invest in improving their productivity over the next 12 months, where that investment is targeted will be crucial,” explains Valantis.
“As well as employing skilled staff and investing in the right training, existing and emerging technological capabilities will only continue to bolster efficiency efforts. From AI and automation, to integrated business systems – the mid-market has never shied away from investing in tools that help them to realise their potential, and this is unlikely to change as they chase their ambitions into 2024.”
ENDS
About the Snapshot
Research for MYOB’s Mid-market Snapshot was conducted by Dynata between 6th October – 31st October 2023. A total of 551 mid-market business leaders and decision makers in New Zealand (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. Responses for the NZ survey were weighted by Industry in line with Stats NZ counts.