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Mid-sized business operators in Australia are emerging from 2022 with solid results, mainly due to the flexibility they have embedded in their strategies.
According to new research from the business management platform MYOB, mid-sized businesses have prospered amidst economic uncertainty, showing resilience and agility to the changing market trends. They were able to reduce costs by diversifying their operations across multiple sectors and industries while taking advantage of technology to optimize processes and increase efficiency.
In 2021, mid-sized businesses in Australia experienced increased revenues and improved overall performance despite the uncertainty of the economic climate.
Research from the business management platform MYOB found that 69% of these businesses saw an increase in their turnover from the beginning of 2022 through to the end of 2021 – a significant boost compared to the 57% who reported that their profitability had improved during this period.
The latest research of 510 Australian mid-sized businesses with a minimum turnover of $5 million and between 20-500 employees finds that seven in ten (69%) have seen increased revenue since January 2022.
Clarke says, “Despite impressive performance this year, our insights suggest mid-sized operators are not resting on their laurels and are aware of the need to prepare for uncertainty.”
According to MYOB’s research, most mid-sized businesses (82%) are concerned about the possibility of a global recession shortly. This anxiety is driven by the uncertainty of the economic climate, with many companies feeling unprepared for any potential downturn. Cybersecurity also remains an ongoing challenge for small businesses.
“Businesses worldwide had to adapt fast to remote working, and for the mid-market, this change appears to be of ongoing benefit,” says Clarke.
Despite these proactive steps, this sector remains wary about a potential global recession due to its reliance on regular cash flow and consistently high customer demand. Suppose the economy does take a turn for the worse. In that case, mid-sized businesses may find it challenging to remain profitable due to shrinking sales figures or higher costs associated with innovation investments.
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