Mid-sized enterprises feel confident heading into 2024, according to new findings from business management platform MYOB.
A survey of 505 mid-sized Australian businesses saw 77 per cent of respondents project that their revenue would be up in 12 months compared to where it was at the time of the survey, despite only half (51 per cent) believing Australia’s economy will improve in 2024.
This was off the back of 67 per cent of businesses saying their revenue increased in the last 12 months.
With the sector comprising over 64,000 businesses and contributing $345 billion (22 per cent) to the nation’s total GDP last year, a strong mid-market is showing promise for the economy.
This further suggests good news for the six million Australians employed by these businesses, with 56 per cent of decision makers polled highlighting their plans to increase employee wages within the next year.
Technology and AI key drivers of growth
MYOB head of product for enterprise and practice, Valantis Vais, said medium-sized enterprises are now bolstering their growth by leveraging new technology.
“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,” Mr Vais noted.
“Savvy business owners who harbour ambitions to scale and grow know that the more they invest in technology, the better off they will be.”
The most popular uses for AI among mid-market businesses included creating marketing and social media posts, copywriting of technical documents, reports and training materials, and financial monitoring and analysis – all of which stood at 37 per cent.
“Business owners are using AI tools to help boost their business effectiveness as well as navigate challenging conditions,” Mr Vais added.
“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.”
Improving overall operational productivity and efficiency was identified as the biggest potential opportunity AI can provide, according to 38 per cent of respondents.
This was followed by better data to support management decisions (37 per cent) and improving control of automated systems (36 per cent).
For 2024, mid-market decision makers surveyed said their top business goals are expanding their local presence (36 per cent), increasing revenue (33 per cent), and securing more customers (33 per cent).
“The mid-market is lead by a robust and enterprising cohort of business owners, who understand the power of technology to drive productivity and to scale,” Mr Vais said.
“It’s encouraging that the majority are making the most of the latest technologies to take their businesses to the next level. Their ambition, coupled with curiosity and determination to seek different ways of working, will hold them in good stead for a strong year ahead.”