Not the big end of town, but not small either, Australia’s mid-market (defined by companies with revenue of $10-$250 milion) makes up just 1.4% of Australian businesses yet contributes more than a third (37%) of Australian business revenue, contributes 21% of deposit and borrowings and employs one in five Australians (23%).
These businesses contribute about $425 billion in added value, compared to large and small businesses – which contribute $393 billion and $373 billion respectively.
The mid-market is the fastest growing sector in our economy, yet it often flies under the radar. By focusing on this sector, we can support its growth — not only here but into Asia, which is where the growth lies.
Recently, the Australian Government released the “Asian Century” whitepaper which addresses how to ride the wave of Asia’s continual growth. This is about government investment in education, infrastructure, workplace change and assisting companies find bigger markets for 2020+.
For mid-market businesses in Australia, the Asian Century whitepaper signifies the need to network and be open to the world, particularly to Asia. Geographically, Australia is intrinsically linked to Asia and we are in an enviable position given the tremendous growth of China and the Asian tigers.
Australia is now at a very important point in its history. The world is changing dramatically and a strong Asia focus is required. This applies at the general economic and society level as well as at the company level.
Let’s have confidence and stay positive.
Leadership. Innovation. Collaboration. Openness. Investment. These areas are critical to the future of Australia’s mid-market sector.
Rosemary Howard is the executive director and conjoint professor of executive education at the Australian Graduate School of Management.