This report provides fantastic information on the very important mid-market – a critically important sector for Australian business. It includes businesses with revenues between $10 million – $250 million that together contribute $425bn p.a. to the Australian economy. The sector includes 27,500 businesses of about 1.4 % of total Australian businesses. Whilst a small percentage the sector is responsible for just over 33% of business revenues, 23% of all employees and nearly 1/5 of all borrowings and deposits.
Key findings:
Since September 2013 there has been a notable lift in growth outlook index for all sectors ( including both mid-market and small businesses ) .
The removal of red tape along with clear and consistent policy is crucial to mid-market success ( Aaron Baxter MD, Commercial Finance, GE Capital ).
61% of mid-market businesses are expecting to grow revenue in the next year & 31% plan to increase revenue but with the same employee numbers ( improved efficiency / productivity ).
By industry the results are varied – Retail has moved into a leadership position ( increasing to 0.178 ) , wholesale has reversed its recent positive performance with concerns over Foreign Exchange rates and the Australian dollar doubling since Dec 2012, Manufacturing has continued to feel the pressure while other ( including mining ) has grown steadily during 2013.
Looking ahead:
The issue of employee engagement and management succession is highlighted with just under 80% stating that having a senior management team that leads effectively and 50% saying that having a company culture that nurture and develops talent as absolutely essential for growth – “employees who are more fully engaged with the business can significantly improve customer relations and, of course, the bottom line.
The report highlights trends to watch – Software as a Service, rapid growth of Asian markets, evolving technology, security in the cloud and shorter technology refresh cycles.
