Mid-sized businesses are powerhouses of progress, driving Australia’s economy forward with a rare mix of agility and scale. They move faster than big corporations and have a stronger ripple effect than small businesses — leading the way in innovation, productivity, and industry transformation.
Despite making up less than 3% of all Australian businesses, mid-sized businesses (i.e. business with between 20 and 500 full-time employees, or revenue between $5m and $200m) contribute a massive 30% of private-sector economic output and employment. They’re closing the productivity gap with corporate giants, proving that success isn’t about size — it’s about strategy.
So, what’s their secret?
We recently surveyed more than 500 leaders and decision-makers from mid-sized businesses across Australia to determine what’s driving this growth. Here’s a snapshot of what we discovered. You can explore the full findings in The Bigger Picture Report.
Agility meets scale: The best of both worlds
Mid-sized businesses have a unique advantage. They have the speed and flexibility of smaller companies but access to the resources and stability to scale their operations. Unlike large corporations, they’re not weighed down by bureaucracy, and unlike small businesses, they have the funding and workforce to drive meaningful change.
Over the past decade, mid-sized businesses have outpaced both small and large enterprises in productivity growth, largely due to their investment in efficiency-driving tools — from automation and AI to integrated business management software that streamlines operations and decision-making.
Dr. Angela Jackson, lead economist at Impact Economics and Policy, describes the mid-sized sector as “an engine room in terms of where we are seeing that productivity growth.”
By making strategic investments while retaining their ability to pivot quickly, these businesses are proving to be some of the most resilient and forward-thinking in Australia.
Customer-centric innovation: The key to staying ahead
One of the biggest advantages mid-sized businesses have over their competitors is proximity to their customers. They operate at a scale that allows them to listen, adapt, and respond without the red tape that slows larger organisations down.
Their approach to innovation isn’t about following trends — it’s about solving real problems for their customers. This fast and responsive mindset has positioned mid-sized businesses as leaders in new product development and service offerings, allowing them to compete effectively against both larger and smaller rivals.
Kim Clarke, MYOB’s General Manager for Enterprise, highlights this drive: “Mid-sized businesses are incredibly ambitious, and it’s their consistent push to be stronger tomorrow than they are today that has seen a growing number benefit from year-on-year revenue increases and greater resilience in the face of difficult conditions.”
The Bigger Picture Report further explores how mid-sized businesses’ customer-first approach is driving innovation and long-term success.
Significant R&D contributions: Investing in the future
R&D is no longer just the domain of major corporations. Mid-sized businesses are stepping up as key players in research and innovation, with their contribution to business R&D investment doubling over the past 15 years.
This willingness to invest in technology, product development, and smarter ways of working has put them at the forefront of driving efficiency and competitiveness — not just within their own businesses but across entire industries.
Their focus on continuous improvement is reshaping traditional industries, helping create new markets, new technologies, and new job opportunities.
Economic connectivity: Strengthening supply chains and competition
Mid-sized businesses don’t operate in a vacuum. They sit at the heart of Australia’s business ecosystem, acting as a bridge between small suppliers and large corporations. Their ability to integrate across different market levels enhances competition, strengthens supply chains, and accelerates technology adoption.
Their influence is particularly strong in construction, manufacturing, wholesale distribution, and professional services, where early adoption of new technologies and smarter business practices has created ripple effects across the economy.
As Kim Clarke explains, “The success of this segment has known flow-on effects for the wider economy – from inspiring smaller businesses to move faster on technology, to challenging bigger businesses by adding to their competition.”
For a deeper look at how mid-sized businesses are strengthening supply chains and driving industry-wide transformation, check out The Bigger Picture Report.
Overcoming challenges to keep innovating
Despite their success, mid-sized businesses still face barriers—particularly when it comes to accessing the right tools, skills, and funding to fuel innovation.
Our survey findings in The Bigger Picture Report reveal key barriers mid-sized businesses face in their innovation journey. These include:
- Financial constraints – Many mid-sized businesses struggle to access funding for expansion and digital transformation.
- Time and resource limitations – Lean teams mean there’s often little capacity to explore and adopt new technology.
- Skills shortages – Finding employees with the right expertise to maximise the benefits of new technology is an ongoing challenge.
But these challenges aren’t slowing them down. Many are tackling these issues head-on by prioritising smart technology investments, from automation and AI to business management platforms that help them streamline workflows and make data-driven decisions.
How smart technology is powering mid-sized business growth
Technology is proving to be one of the biggest enablers of mid-sized business success. Investing in the right tools — especially those that automate repetitive tasks, centralise data, and improve financial oversight — allows businesses to focus on what really matters: growth, innovation, and customer satisfaction.
Many are turning to solutions like MYOB Acumatica to bring together financials, operations, and customer insights in one place. These platforms help businesses streamline workflows, reduce manual processes, and improve decision-making with real-time data.
With technology now a key driver of productivity, businesses that embrace automation and smart software solutions will be the ones leading the charge into the future.
The road ahead: What’s next for mid-sized businesses?
Whether it’s investing in new technology, ramping up R&D, or seizing new market opportunities, these businesses aren’t just keeping up — they’re setting the pace. As mid-sized businesses continue to expand and innovate, their impact on the economy will only grow stronger. Their ability to move quickly, invest in technology, and develop industry-leading products positions them as a driving force in Australia’s business landscape for years to come.
For those looking to stay ahead, the next step is investing in tools that support growth and streamline operations.
To learn more about how mid-sized businesses are shaping the future, read The Bigger Picture Report.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
