In the face of a tough local and global economic climate, Australia’s mid-sized businesses have shown both strength and ambition over the past year, with MYOB’s latest survey highlighting a solid performance.
The survey, which polled more than 500 leaders and decision-makers in mid-sized businesses, revealed that more than half of mid-sized businesses have seen an increase in revenue on this time a year ago, while 30% say revenue is about the same. 17% however, have seen a revenue drop, indicating some operators are still struggling.
But looking ahead, there’s greater confidence coming through. Sixty percent of business leaders surveyed expect their revenue to rise over the next 12 months. Around 22% predict results will hold steady, while 17% are bracing for a decline.
In terms of barriers to growth, the survey revealed that the Cash Rate was considered a significant challenge to operations in the past year. Other local business challenges mid-sized firms are up against include rising energy costs, the rate of inflation and interest rates and the cost of finance.
“Despite 52% of mid-sized businesses seeing increased revenue this year, the Cash Rate may have caused some to delay expansion plans or hold off on hiring,” MYOB CEO — Paul Robson, explains.
“A quarter of mid-sized businesses believe the Cash Rate would need to fall by at least one percentage point to facilitate greater growth.”
Notwithstanding both local and global challenges, Paul says the mid-sized business segment continues to demonstrate resilience.
“Mid-sized companies in Australia have been strong in a challenging year, and while they are still facing some cost pressures, there’s clear optimism about what 2026 holds.
“It’s clear from the data that businesses are putting strategies in place to manage risks while preparing to maximise opportunities.”
Technology priorities for Australia’s mid-sized businesses
One way mid-sized businesses are looking to achieve just this, is by sharpening their focus on technology that will boost productivity and help them gain a competitive advantage.
As a result, many are prioritising software upgrades that facilitate growth, improve customer relationships and optimise operational efficiencies. CRM leads the way, with 44% planning to upgrade their CRM solution, while finance and accounting management solutions follow closely at 43%, and more than a third (36%) are looking to upgrade or improve their ERP systems.
Behind these investments are some clear motivating factors. Nearly half (48%) of Australian mid-sized businesses surveyed say that operational efficiency and workflow automation is their main driver for adoption, while 44% cite enhancing data security, compliance, and risk management. Flexibility and scalability (34%) and reducing IT costs (33%) are also key motivators.
In parallel, AI is starting to reshape business operations. Just over a quarter (26%) of decision-makers in mid-sized businesses already using AI say it has reduced their reliance on external marketing services, while 28% report improvements in administration and data management. Another 23% are applying it to upskill their teams.
Looking ahead, adoption is set to accelerate. Four-in-10 of those polled plan to use AI to strengthen customer relationship management in the next 12 months, and 37% will focus on optimising supply chains. Other areas on the radar include customer service, payroll, and financial reporting — underscoring AI’s expanding role in driving efficiency and competitiveness.
More than half of the mid-sized firms surveyed believe the Australian economy will improve over the next 12 months and AI will be a valuable lever to lift productivity, contain costs, and create operational efficiencies.
“AI’s ability to lower cost pressures through automation and smarter resource allocation will allow mid-sized businesses to remain agile and resilient while enabling their teams to focus on growth.”
Overall, these priorities point to a thoughtful strategy to shape the path ahead — investing in technology that not only improves efficiency but also strengthens resilience, supports people, and ensures businesses are ready to adapt to evolving demands and new opportunities in 2026 and beyond.
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