A third of leaders at mid-sized businesses have plans to integrate AI into their operations over the next five years, while 23% are focused on enhancing digital security to protect valuable data as they expand
Medium sized businesses are the often-overlooked stayers in the Australian economy. They contribute one fifth of the nation’s GDP and many have scaled successfully even in unpredictable times.
A recent MYOB survey of mid-sized businesses – employing 20-500 FTEs and with $5m+ annual revenue – illustrates they remain committed to growth and taking steady steps towards a stronger future.
The latest research highlights their success and forward-thinking strategies, particularly around growth, resilience, and technological innovation. For smaller businesses looking to scale, they could consider how these mid-sized businesses’ approach market pressures, funding, and innovation might translate to their own strategies.
Navigating pressures with determination and clarity
In a climate where economic conditions remain relatively soft, mid-market businesses are a testament to resilience. They have weathered recent economic challenges and managed to maintain robust growth, with our latest research finding 52% reported revenue increases in the last year.
Certain businesses have equally shown resilience over the last four years as they have battled with the rising cost of doing business and consumers feeling the pressures of the cost of living.
For many in mid-sized businesses, while pressures are inevitable, they don’t have to be insurmountable.
Mid-sized businesses are finding new ways to sell to and grow a customer base, trialing new products and services, and direct to consumer marketing. They are taking a proactive approach to the pursuit of growth.
Innovation as the core driver of growth
Mid-sized businesses have proven themselves to be a hub of innovation. Many are now heavily invested in technological upgrades, with AI, digital security, and data analytics topping their priority lists. Not only does this enable these companies to stay competitive, but it prepares them for an increasingly tech-driven future.
A third of leaders at mid-sized businesses have plans to integrate AI into their operations over the next five years, while 23% are focused on enhancing digital security to protect valuable data as they expand.
For scaling businesses with limited resources, technology is a critical avenue for growth rather than an optional investment.
Small steps toward digitisation can pave the way for more ambitious tech investments later. For instance, start with manageable, cost-effective tools that streamline workflow or enhance customer service. Over time, as businesses grow, they may find themselves ready to explore more advanced tools, analytics, or upgrades, similar to the mid-market’s trajectory.
Learning from the mid-market’s clear focus on future growth
Another powerful learning is the mid-market’s commitment to future growth. This ambition is grounded in reality, with 53% of leaders anticipating revenue increases and over half reporting improved profitability over the last year.
Small businesses might not be aiming for exponential expansion or international markets yet, but the takeaway here is one of ambition combined with a solid, step-by-step approach. By setting clear targets, small and scaling businesses can also begin laying the groundwork for growth that extends beyond their current customer base. This could mean developing a stronger brand presence, expanding product lines, or even setting up partnerships to reach a broader audience.
Investing in talent for a competitive edge
In addition to investing in technology, mid-market businesses are also investing in their teams, with 48% looking to bring on new hires as part of their expansion strategy. For small and startup businesses, hiring is often constrained by tight budgets. However, an appropriately skilled, adaptable workforce is crucial, even if this means taking on fewer hires but with the right skills and expertise.
As scaling businesses work to compete in their markets, even a few team members with specialised skills can significantly impact innovation and growth. This, combined with a focus on technology, allows smaller enterprises to punch above their weight and meet the challenges ahead with confidence.
The maturity and growth of mid-market businesses goes hand in hand with strategic clarity. They know where they are headed, why they need to get there, and have defined pathways to reach their goals. Small and startup businesses that emulate this clarity of purpose can align their strategies with long-term objectives and a forward-thinking outlook.
It’s about fostering ambition with calculated steps, keeping an eye on investment and innovation, and building a team that can support the vision.
As we prepare for the year ahead, small and growing businesses can adopt strategies from the mid-market to better navigate the complexities of today’s business landscape and find their own path to success.
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