Strong sales forecasts and increased revenue projections are adding to the economic confidence of New Zealand’s mid-market businesses, especially when it comes to growth into export markets, according to new research from MYOB.
The latest nationwide poll by MYOB of more than 500 mid-market – with between 20-500 FTEs and $5m+ annual revenue – business leaders and decision-makers reveals that more than three quarters of those surveyed expect the economy to improve over the next 12 months – the highest level of optimism in the last three years MYOB has polled this sector.
The business leaders were also surveyed on export-related activities, with the almost a half of respondents signalling a significant potential for growth in the local export market.
In response to the question: ‘Thinking about your business ambitions for the next five years, what are the top five goals you would most like your business to achieve?’ 44 percent responded that they would like to start exporting their products and services overseas, while 44 percent plan to become an international business, with office and outlets overseas.
“It’s evident that the determination, resilience and measured approach of mid-market businesses in navigating difficult conditions has paid off, with many now primed to take advantage of new opportunities as economic conditions start to improve,” says Kim Clarke, MYOB Executive General Manager – Enterprise & Practice.
“While business leaders will likely continue to take a considered approach to investment as cost pressures take time to soften further, it’s clear that investing in innovating their operations and customer propositions remain an integral part of their strategy to drive growth.”
MYOB’s survey also asked exporters in the survey group to identify the current international markets they operate in. These were as follows:
- Australia – 35 percent
- China – 32 percent
- Japan – 28 percent
- South Korea – 23 percent
- USA – 19 percent
- Canada – 19 percent
The export group was also asked: ‘Which international markets do you believe will have the most impact on the trading environment for New Zealand businesses in the next five years?’ Their response was:
- China – 41 percent
- Australia – 35 percent
- Japan – 28 percent
- USA – 22 percent
- South Korea – 19 percent
Although the current Government is pursuing trade with India, only 13 percent of respondents thought the region would have the most impact on the trading environment for the next five years.
Kim Clarke.
Amongst all respondents, a focus on growth and investment as well as new customer acquisition ranked high. The intention to invest in innovation and business expansion (56 percent aiming for growth and 42 percent planning significant investments) implies that these businesses are preparing to scale, which often includes exploring export opportunities.
The mention that 34 percent of businesses expect new customers to account for over 60 percent of their sales indicates a proactive approach to expanding their customer base, which could encompass international markets.
“It’s evident that the determination, resilience and measured approach of mid-market businesses in navigating difficult conditions has paid off, with many now primed to take advantage of new opportunities as economic conditions start to improve,” says Clarke.
“While business leaders will likely continue to take a considered approach to investment as cost pressures take time to soften further, it’s clear that investing in innovating their operations and customer propositions remain an integral part of their strategy to drive growth.”
