New Zealand’s mid-market businesses are experiencing a surge in economic confidence, reaching a three-year high, according to a recent poll conducted by business management platform MYOB.
The survey, which involved over 500 mid-market leaders (businesses with between 20-500 FTEs and $5m+ annual revenue), revealed that 79 percent expect the economy to improve over the next 12 months, marking the highest level of optimism recorded in the last three years.
“Earlier this year, we saw the mid-market under pressure, with fuel prices, utility costs and cashflow levels all constraining business performance. While these cost pressures certainly haven’t gone away, it’s clear that sentiment has turned a corner,” says Kim Clarke, MYOB Executive General Manager – Enterprise & Practice.
“Business leaders are ready to build on the gradual improvements we’re seeing across the economy, backed by some healthy sales pipelines.”
The survey indicated that 63 percent of respondents reported an increase in business revenue compared to the previous year, closely mirroring last year’s expectations where 62 percent predicted growth for 2024. Despite this optimism, 26 percent noted their revenue remained steady, and 11 percent experienced a decline.
Looking ahead, a robust 68 percent of decision-makers anticipate revenue growth in the next year, while 23 percent expect their revenue to stabilise. Significantly, 83 percent of business leaders reported having more scheduled sales or work for the final quarter of 2024 than usual, signaling strong demand.
Clarke highlights that “more than a third (34 percent) of the New Zealand businesses polled say that new customers account for over 60 percent of their expected sales for the last quarter of 2024,” further emphasising the healthy demand within the sector.
In addition to a promising end to the year, the insights suggest that mid-sized enterprises are poised for ambitious growth. Over half (56 percent) of those surveyed indicated plans for business expansion, with goals including increasing employee headcount and opening new locations. Additionally, 52 percent aim to scale from local to national operations, and 45 percent seek to boost revenue.
The drive for growth is reflected in investment intentions, with 42 percent of respondents planning to allocate between $60,000 to $80,000 toward innovation initiatives over the next year. Notably, 27 percent intend to invest over $100,000. Key focus areas for these investments include new product development (34 percent), improving engineering processes (33 percent), and advancing scientific research (31 percent).
“It’s evident that the determination, resilience and measured approach of mid-market businesses in navigating difficult conditions has paid off. Investing in innovation remains integral to their strategy to drive growth.”
Clarke expressed confidence that these businesses are well-positioned to assert themselves as a leading market force in the coming years.
