Medium-sized businesses ‘enter 2024 confident of growth’
Two-thirds increased revenue this year and expect technology to help power the next 12 months, MYOB survey finds.
Medium-sized enterprises enter the new year in a confident mood with more than three-quarters expecting revenue to grow despite just half believing the economy will improve, research by MYOB finds.
It also revealed that many of the 6 million people employed by these businesses could expect wage rises in the next 12 months, with 56 per cent of decision-makers planning increases.
MYOB head of product for enterprise and practice Valantis Vais said medium-sized businesses were a resilient group with two-thirds increasing revenue over the past year.
“The mid-market is led by a robust and enterprising cohort of business owners who understand the power of technology to drive productivity and to scale,” Mr Vais said.
He said a strong mid-market was an advantage for the economy, with the sector comprising over 64,000 businesses and contributing almost a quarter – $345 billion – to the nation’s GDP last year.
The top three goals of mid-market decision makers were expanding their local presence (36 per cent), increasing revenue (33 per cent) and securing more customers (33 per cent).
Many were seeking out technology to help grow, Mr Vais said, with 43 per cent saying expertise in the areas experiencing change would have the biggest influence on whether they could hit business goals, followed by IT systems capability at 38 per cent.
“It’s encouraging that the majority are making the most of the latest technologies to take their businesses to the next level,” Mr Vais said. “Their ambition, coupled with curiosity and determination to seek different ways of working, will hold them in good stead for a strong year ahead.”
Mr Vais said AI was one technology increasingly seen as critical for growth.
“Our findings indicate the majority of Australia’s mid-sized businesses see the potential in new technologies including artificial intelligence, with more than three-quarters of those surveyed already using AI,” he said.
“Business owners are using AI tools to help boost their business effectiveness as well as navigate challenging conditions.
“Seventy-one per cent believe AI will impact their industry in the next five years, so it’s vital for leaders to experiment with this technology to see how it can enhance their business operations.
“If they don’t, they’re at risk of being left behind.”
Popular uses for AI included creating marketing and social media posts, writing technical documents, reports and training materials, and financial monitoring and analysis.
Survey respondents said AI had the most potential for improving productivity and efficiency (38 per cent), informing management decisions with better data (37 per cent) and improving control of automated systems (36 per cent).
“Eighty-eight per cent of respondents regularly measure business productivity, so it’s not surprising that mid-market leaders are already leaning on AI to help improve and measure this to ensure optimal results.”
The MYOB research quizzed 505 medium-sized businesses with 20 to 500 full-time equivalent employees and more than $5 million turnover.
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