Australia’s mid-market is often referred to as the “engine room” of our national economy and it’s with good reason. It employs nearly a quarter of the workforce and delivers nearly 40 per cent of the country’s business revenue.
Like much of the economy, it’s a sector currently experiencing unprecedented change as the twin forces of digital disruption and globalisation continue to present new challenges and opportunities. Yet unlike the bigger end of town, mid-market companies are discovering their size makes them quite adaptable and better equipped to make the changes necessary to flourish in a globalised digital economy.
Moreover, they understand the enormous potential our proximity to Asia presents with its fast-growing middle class and more than 2 billion consumers.
Our recent research study found there was a significant level of optimism among the nation’s mid-market players. Tellingly, respondents were quite bullish across most sectors which included public and private companies, start-ups, family-owned enterprises and representatives from the not-for-profit sector.
PART ONE
Business sentiment remains broadly optimistic across the board
When asked about their growth prospects now and into the future, the majority of mid-market companies have confidence in their own and their particular industry sector’s performance. Interestingly, this positive outlook comes at a time when there is an increasing level of volatility in the global economy.
of mid-sized businesses are confident in prospects for their companies, 52 per cent for their industry.
We are in a growth industry and there is worldwide need for our products.
Mid-market business, Life Sciences
Leading reasons for optimism
We have the right plans in place for growth.
Agility is the new currency of business to be embraced.
Markets and economies grow over time. I am confident in our people and plans to enable us to grow.
Mid-market business, Hospitality / Accommodation
PART TWO
Agility and adaptability are
the keys to growth
While it seems most of the nation’s business and government leaders seem to endlessly quote the buzzwords of change such as agility and nimble without doing much, it’s heartening to note our mid-market businesses are putting the words into action.
Survey respondents understand they need to be agile, innovative and adaptable in the digital economy and many are already strongly focused on transforming their businesses and equipping their workforces with the necessary skills to thrive in the future.
of businesses surveyed are actively embracing change, describing themselves as being either in a growth, transformation or transition stage.
You need to evolve fast when and if the environment changes.
Mid-market business, Banking / Financial Services
While mid-sized businesses surveyed are weighing up risks, they are tending towards an openness to risk overall.
If you are prepared to innovate and challenge the barriers then there are great opportunities for growth.
Mid-market business, Banking / Financial Services
Our research indicates that while mid-market businesses continue to confront the asymmetrical challenges of digital disruption and globalisation, there is a general sense of optimism right across the community. Part of that optimism can be derived from the mid-market’s confidence in embracing change and the willingness of companies to adapt in a fast-paced business environment.
According to KPMG's Tony Nimac, mid-market companies have generally embraced digital disruption and understand the importance of being agile and adaptable in a sometime challenging business environment.
“If you’re not agile, you’re reactive, you’re standing still – so that nimbleness is a really visible trait in the mid-market.”
For Nimac, it’s one of the key factors driving the mid-market’s positive outlook in the survey results.
Enterprise is a specialist division of KPMG Australia, dedicated to advising the emerging, private and mid-market. We work with established entrepreneurs, family businesses, not-for-profits, and fast-growing companies to build thriving organisations.
By bringing our diverse expertise together, we give our clients the confidence to focus on the things that will truly make an impact and help them grow.
At Enterprise, we offer an extensive range of audit, tax, accounting and advisory services to help clients through every stage of their life cycle, whether starting, growing or exiting their businesses.