Mid-sized businesses have reported strong performances and profitability over the past 12 months, which stands in contrast to the ongoing struggles of smaller businesses.
MYOB’s survey of more than 500 local mid-sized businesses indicated more than two thirds (69 percent) of mid-market business operators saw an increase in revenue in the calendar year to date, that was an increase over the previous year, when 63 percent reported increased profitability.
“In comparison to our recent snapshots of smaller businesses, where revenue and confidence have been consistently down, the mid-market entered this year with higher levels of confidence and work in the pipeline, and we’ve seen this promising outlook continue throughout the year,” MYOB spokesperson Jo Tozer said.
“From our latest insights and conversations with our customers, it’s evident that many mid-market businesses have proven to be incredibly resilient, despite the enormous disruptions and challenges that have been felt across the economy this year.”
The survey also indicated more than three quarters (78 percent) of mid-market business leaders planned to increase prices over the next three to six months, to cover rising production costs, increasing supply costs and increasing operational costs.
Eighty-eight percent of mid-market business leaders and decision makers were concerned about the possibility of a global recession.
“With a stronger possibility of recession on the horizon, businesses are rightly concerned about the impact on both customer demand and their access to finance,” Tozer said.
“Many will also be considering the potential flow-on effects in terms of what this means for their growth strategies.”