The Australian mid-market business sector is poised for significant growth and transformation in 2025. This blog is based on insights from MYOB’s survey of 506 Australian and New Zealand mid-market business owners and decision-makers, which examines the confidence, performance, and ambitions of medium-sized businesses. The findings reveal a sector in pursuit of development and growth, navigating challenges with resilience and optimism. 

Further Growth Expected

The Australian mid-market has demonstrated remarkable resilience and outperformed smaller businesses across several key metrics: 

• • Revenue Growth: Over half (52%) of mid-market leaders reported an increase in revenue over the past 12 months, compared to just 22% of smaller businesses. 

• • Profitability: 56% of mid-market respondents experienced improved profitability, while only 25% saw a decline. 

• • Economic Confidence: 57% of mid-market business leaders expect the economy to improve in the next 12 months, with 21% predicting significant improvement. 

These findings stand in stark contrast to the MYOB Bi-Annual Business Monitor, which reported a tougher landscape for smaller businesses, with 33% experiencing a revenue decline. This optimism underscores the mid-market’s readiness to capitalise on opportunities and navigate challenges.

AI Adoption as a Driver for Efficiency and Growth

The adoption of AI tools continues to gain momentum among mid-market businesses. With 34% of leaders prioritising investment in AI over the next five years, it’s clear that leveraging AI for data analysis, automation, and customer engagement is becoming a top priority. 

AI is not just about replacing manual processes—it’s enabling businesses to make smarter decisions faster. From predictive analytics to personalised customer experiences, AI is redefining the way mid-market enterprises operate.

How to Stay Ahead: 

• • Integrate AI into your existing ERP solutions for better forecasting and operational efficiency. 
  • Explore AI-powered tools for customer relationship management (CRM) to enhance client interactions. 

International Expansion: Going Beyond Borders

As global markets become increasingly accessible, 28% of mid-market businesses plan to expand internationally within the next five years. Whether through exporting products or establishing an offshore presence, internationalisation is a critical growth strategy. 

This trend reflects the ambition of mid-market leaders to gain a competitive edge, tap into larger customer bases, and diversify revenue streams. 

How to Stay Ahead: 

• • Invest in scalable ERP systems to manage international operations seamlessly. 
  • Research potential markets and ensure compliance with local regulations. 

Innovation as a Growth Enabler

Innovation remains at the heart of mid-market success. Business leaders are focusing on: 

• • New product development (31%) 
  • Enhancing engineering processes (25%) 

• • Investing in customer relationships (23%) 

The ability to innovate ensures mid-market businesses can respond to changing customer needs, improve operational efficiency, and stay competitive in a fast-evolving market. 

How to Stay Ahead: 

• • Leverage your ERP to streamline supply chain and production processes. Build a culture of innovation by encouraging cross-functional collaboration and continuous learning. 

The Growing Role of Digital Security

With 30% of mid-market businesses identifying cyber-attacks as a top risk, digital security has become a priority. Leaders understand that safeguarding their operations is essential for maintaining customer trust and business continuity. 

How to Stay Ahead: 

• • Regularly update your ERP system and CRM software to address potential vulnerabilities. 
  • Train staff on best practices for cybersecurity to minimise risks. 

Why These Trends Matter to Mid-Market Businesses

The trends outlined above reflect the resilience and ambition of mid-market businesses in Australia. By focusing on technology adoption, global expansion, and strategic innovation, leaders can position their organisations for sustainable growth in an increasingly competitive landscape.