Commissioned by MYOB, a survey of 350+ leaders and decision-makers of mid-sized businesses* revealed a largely positive economic outlook from the segment, with just over half of those surveyed (51%) predicting the economy would improve over the next 12 months, while 22% expect conditions will stay the same. More than a quarter (27%) of those surveyed expect to see the economy decline.
This confidence comes off the back of a strong recent performance by mid-sized enterprises, with nearly half (48%) of the business leaders surveyed reporting their revenue had increased in the last 12 months, compared to a quarter (25%) of businesses that reported their revenue was down on this time a year ago.
Looking ahead, the optimism around business performance remains. Just over half (52%) of those surveyed are forecasting an increase in revenue over the next 12 months, while 26% expect their revenue to remain the same and one-in-five (20%) surveyed believe it will decline.
MYOB Executive General Manager – Mid-Market, Paul Voges, says that while mid-sized businesses account for a small proportion of overall enterprises in New Zealand, their performance continues to play an important role in the economy’s recovery.
“Backed by an innovative mindset and impressive resilience, mid-sized businesses have continued to outperform expectations in consistently challenging conditions.
“As we look ahead, our insights show they’re not slowing down. The latest data highlights these companies remain laser focused on pursuing growth, with increasing revenue, gaining a larger share of their market, and expanding the size of their business being the top ambitions for the next three years, amongst the decision-makers we polled.
“For the broader New Zealand economy, those intentions should translate into increased local investment, as the segment looks to invest more in the people, tools, and product and service development, to help them get there.”
Employment and investment In good news for the labour market, just over a third (34%) of mid-sized business owners surveyed intend to increase the number of full-time positions in their businesses in 2027, and more than a quarter (27%) intend to invest in more part-time or contract workers.
The 570,000+ Kiwis employed by local mid-sized firms are also likely to feel the benefits of the segment’s performance and optimism, with more than half (55%) surveyed saying they intend to increase wages and salaries in the coming year.
Other investment signals from the sector include increased spend on new or expanded products and services (44%), a greater marketing and advertising spend (40%), and more investment in plant and equipment (35%).
Navigating choppy international waters With around two-thirds of New Zealand’s mid-market businesses engaged in exporting, the impacts of global uncertainty are high on the radar of the business leaders surveyed.
Increased shipping and freight costs are the leading concern for the next 12 months (37%), followed by wars or conflicts (35%), supply chain delays (33%) and geopolitical tensions (31%). The prospect of new or increased import and export tariffs is also a concern for more than a quarter (27%) of those surveyed.
The ongoing conflict and unrest in the Middle East has affected trade for a high proportion of mid-sized exporters, with 57% of this group reporting that they have made changes to their target international markets or supply chains as a result.
“New Zealand’s mid-sized firms are well-positioned to be agile and responsive when global events impact or disrupt their business. The way they’ve continued to adapt and react to ongoing uncertainty is evidence of this,” explains Paul.
“In a bid to mitigate trade disruptions and rising costs, more than a third of the mid-sized businesses we polled are locking in supply contract costs, while just over a quarter are looking for new supply partners overseas and a similar proportion are looking for new trading partners overseas. We’re also seeing businesses adapt agreements to allow for price variances, while others are looking for local sources of essential parts and materials.
“The performance of local exporters is critical to the New Zealand economy, and mid-sized businesses are taking control of what they can with a practical response to the pressure on global trade,” Paul adds.
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