MYOB Enterprise Insights Report
MYOB Enterprise Insights Report:
Transforming the Mid-market
In this report, MYOB surveyed 276 mid-market businesses Australia-wide to measure the performance of the Australian mid-market. The reasoning behind this was to highlight the challenges these businesses face and then to identify the barriers hindering their growth. It is hoped that this report will assist in bringing the significance of mid-market businesses into greater focus and support their success. Some of the topics and findings covered are listed below:
Business conditions set to improve as confidence in economy grows:
According to the MYOB Enterprise Report survey, confidence was high in the performance of Australia’s
economy in late 2017.
Significant Revenue Growth:
44% of bigger business operators said their revenues had grown in 2017, while just 16% said their revenue decreased.
More skilled workers needed to relieve business pressure:
A shortage of skilled employees needed to support the demands of a business is reaching crisis levels among Australia’s bigger-business operators.
Top 3 Pressures for Bigger Business
Finding Qualified Staff
Attracting New Customers
Enterprises looking to employ more and pay more:
Australian enterprises are expecting to take on more staff over the next 12 months, as well as pay their current staff higher salaries and wages.
More Business taking on Staff in 2018:
The number of jobs available in Australia is also set to increase. Steady confidence in the economy and strong returns will mean more enterprises can invest in additional staff this year.
Moderate number of bigger businesses exporting:
The MYOB Enterprise Report survey found that just under a sixth of bigger businesses based in Australia now sell off-shore.
Asia focus in trade development:
While New Zealand is the bigger business sector’s largest export market, when asked which countries they
believe the Government would be best to further build trade ties with, 54% of respondents said Asia.
Enterprise owners have greatest influence on their businesses
For the majority of the mid-market, the business owner is still most likely to make the major business decisions – particularly regarding operational structure and strategic planning.
Chief executives decide on IT investments:
While enterprise owners decide the overall direction of their businesses, CEOs (or equivalent) are the most likely group to decide when, where and how the business invests in I.T and related services.
Success measured by profitability more than growth or customer satisfaction:
Making a profit is the most significant indicator of success according to the bigger business sector. Far fewer target growth and customer satisfaction as a measure of their performance in the market.
Few businesses targeting growth:
According to the MYOB Enterprise Report survey, the majority of the businesses in the sector are not currently targeting growth.
Main obstacles faced:
- Lack of skilled staff 29%
- Lack of time 30%
- Cost to develop 20%
Innovation and R&D Under-funded:
Research and development isn’t a priority for Australia’s mid-sized enterprises, with close to a quarter (22%) spending less than 1% of revenue on R&D.
Enterprises say Government support is lacking:
Just 14% of respondents agreed Canberra was working to support businesses, while almost a third (29%)
disagreed. 7% strongly disagreed, while only 1% strongly agreed.
Moderate support for the government:
A large number of Australia’s enterprises agree the Coalition is best able to help businesses like theirs succeed.
Are enterprises ready for digital transformation?
Few operators believe they’re prepared for newer, emerging technologies – such as robotics, the internet-of-things and AI.
MYOB found that the mid-market is full of potential, with the ability to transform the future of the Australian economy. The Australia mid-market sector is made up from dynamic businesses that are responsible for stimulating job growth, introducing new technologies and reinvesting their profits in Australia.
Despite these findings, there are areas that need improvement. For example, some business owners are satisfied with their level of success and prefer not to actively stimulate growth in their business. In fact, only a small number of businesses surveyed have ambitions beyond success in domestic markets. Other constraints include not being open to new technologies, and a failure to invest in research and development. These are all compounded by the growing skills crisis.
MYOB suggest more needs to be done to help foster the development of the mid-market. Business must become more proactive in their growth, invest more in research and development, and become more technologically inclined, adaptive and dynamic. Additionally, the government needs to take a stronger role in creating incentives for businesses that do focus on developing knowledge and infrastructure. The government needs to address the skills shortage issue by investing in training and looking at the immigration of experienced and highly skilled workers.
Ultimately, Australia needs to recognise the importance of the mid-market and provide support where needed in order to ensure these businesses have the resources, confidence, knowledge and incentives in place to succeed. To read the entire report, please ensure to download your free copy of the report below.
Download MYOB Transforming the Mid-Market Report