As we near the close of 2024, businesses in Australia’s mid-market sector are navigating a landscape filled with both challenges and opportunities. MYOB’s latest Mid-Market Report sheds light on the key trends shaping this vital segment, providing valuable insights for decision-makers. MYOB’s latest research examines the confidence, performance and ambitions
of owners and decision-makers of medium-sized businesses, finding the sector buoyant and, for the most part, in pursuit of development and growth.

The State of Mid-Market Confidence

MYOB’s survey of 506 mid-market business owners and decision-makers found 57% expect the economy to improve in the next 12 months and over a fifth (21%) believe that improvement will be significant. In comparison, just under a quarter (24%) of mid-market business leaders surveyed expect the economy to decline in the next 12 months,
 while 18% predict it will remain the same.

Despite economic headwinds, the report reveals a resilient sector. This optimism is driven by strategic investments in technology, workforce development, and operational efficiency.

However, challenges remain, with rising costs, skills shortages, and market competition cited as the top concerns. For business leaders, balancing this optimism with a proactive approach to risk management is essential to maintaining momentum.

Business Performance

The mid-market’s confidence in the economy may be somewhat supported by business performance, with most companies reporting either stable or growing revenue over the past year.

Despite a slowdown in household spending – with the ABS’s monthly indicator unchanged at 0.0% for August, following declines of 0.5% in July and 0.1% in June – over half of the surveyed business leaders remain confident that revenue growth will persist over the next 12 months.

Additionally, profitability for many mid-sized businesses is improving, as 56% of respondents reported an increase in profitability in the year leading up to October 2024. However, a quarter (25%) of these businesses polled saw a drop in profitability over the same period.

Top 5 business goals for the mid-market for the next five years

Looking ahead to the next five years, the Australian mid-market is focused on a strong growth strategy. This is evident not only in their emphasis on revenue growth but also in their plans for business expansion, both within Australia and internationally.

Alongside their core growth objectives, just over a quarter (26%) of mid-market businesses plan to begin exporting their products and services over the next five years. Another quarter (25%) aim to enhance their operations through significant technological changes. Investment opportunities with these businesses are also set to increase, with 20% planning to list their company overseas and 19% aiming for an ASX float.

Top five business goals for the mid-market over the next five years:

• 48% Increase our revenue
• 31% Gain a larger market share
• 29% Expand from a local to a national level
• 28% Become an international business
• 27% Expand the size of the business

Looking ahead, more than a third (34%) of these businesses are prioritizing innovation spending on AI tools, which could significantly transform how Australians work and interact with businesses. There is also growing interest in the Internet of Things, driven by the increasing connectivity of devices. At the same time, the vast amounts of data generated will likely lead to a heightened focus on analytics and big data modeling in the next five years.

Top five business risks the mid-market believe could have the greatest impact over the next five years

Although inflation is trending downward and there are expectations that the Reserve Bank of Australia will reduce the cash rate in the coming year, 40% of respondents view high inflation as a significant risk that could have the greatest impact on their business over the next five years.

Top five business risks the mid-market sees as most impactful in the next five years:

Final Thoughts

MYOB’s Mid-Market Report offers a comprehensive view of the current state of Australia’s mid-sized businesses and the path forward. It’s clear that while challenges persist, this sector is defined by resilience, adaptability, and a forward-thinking mindset.

For business leaders, strategic investments in technology, workforce development, and operational efficiency will be key to seizing opportunities that 2025 has to offer.

Read the full MYOB Mid-Market Insight report here

Ready to take your business to the next level?

At Momentum Software Solutions, we specialise in helping mid-market businesses unlock their potential with tailored technology solutions. Let’s work together to make 2025 your most successful year yet. Contact us today for a no-obligation chat!

Email: enquiries@momentumss.com.au

Phone: (07) 5479 1877