Mid-sized businesses aren’t just participating in the Australian economic landscape, they’re transforming it. The latest MYOB Mid-Sized Business Report 2025 provides compelling evidence of their outsized impact and unique advantages in today's competitive marketplace.
Key insight: Mid-sized businesses generate nearly 30% of Australia's private-sector employment and economic value while representing only 3% of businesses nationwide.
Mid-sized companies, defined as employing between 20–500 staff or generating revenues from $5M–$200M - have emerged as powerful drivers of economic dynamism.
The numbers tell a compelling story. The mid-sized business sector contributes significantly to the Australian GDP. Broken down by company size, businesses with 20 to 199 employees contribute approximately 17% of the GDP, while those with 20 to 500 employees contribute around 22%.
Their outsized impact is despite the fact that this sector only comprises 70,000 organisations in Australia, which is only around 7 per cent of all private-sector business entities with employees.
These businesses thrive through three distinct advantages:
Read how ProSpend can help mid-sized manufacturing firms drive growth]
This powerful combination has established mid-sized businesses as innovation leaders, investing an impressive $6.5 billion in R&D during 2021–22—rivalling the spending capacity of much larger corporations across Australia.
The innovation focus translates to tangible business results:
The MYOB report highlights how progressive mid-market CFOs are harnessing technology to achieve substantial productivity gains. Automation, AI-driven tools and comprehensive business management systems stand out as the primary growth drivers in this sector.
"Many mid-market finance teams are stuck with outdated expense management systems. While businesses adopt digital tools elsewhere, expense processes often lag, tied to legacy methods that drain time and expose organisations to avoidable risks. For CFOs, these inefficiencies are both operational headaches and strategic disadvantages in an increasingly competitive landscape."
— Sharon Nouh, CEO, ProSpend Australia
Despite their strengths, significant obstacles remain:
More than 25% of mid-sized businesses report that siloed systems, administrative burdens, outdated processes and technology scaling challenges are limiting their growth potential, particularly when managing ATO reporting requirements.
MYOB Mid-Sized Business Report 2025 key findings
These barriers create tangible business impacts:
Going forward, the future trajectory of the sector's share of the Australian economy will largely depend on each business's capacity to adopt and leverage emerging technologies.
Our unified platform addresses these critical challenges with integrated solutions designed specifically for the Australian market:
Explore ProSpend's expense management features
Calculate your potential AP automation savings
These capabilities enable finance teams to shift from transaction processing to strategic initiatives—whether expanding innovation capabilities, pursuing growth opportunities or optimising financial performance.
Forward-thinking CFOs understand that their role extends beyond financial stewardship—they are strategic innovators shaping their organisations' futures. By implementing intelligent spend management solutions, finance leaders gain the visibility and control essential for driving sustained growth and competitive advantage.
Companies that address these challenges now position themselves to:
The journey toward finance transformation begins with:
The MYOB findings are clear: mid-sized businesses will continue driving Australia's economic innovation provided they overcome technological and administrative constraints.
For CFOs and finance leaders, implementing unified business spend management solutions represents a critical step toward maintaining competitive advantage in the Australian marketplace.
ProSpend partners with Australia's most innovative mid-sized businesses to transform financial operations. Our unified spend management platform delivers the clarity, control and efficiency needed to accelerate business performance in today's challenging economic environment.
Q: How much do manual finance processes cost Australian mid-market businesses?
A: According to the Australian Taxation Office (ATO), Australian businesses lose approximately $27 to $30 per invoice with manual finance processes. This does not include the hidden costs in chasing receipts, reconciliations and productivity loss.
Q: What's the typical implementation timeframe for spend management solutions?
A: Most Australian mid-market businesses can implement comprehensive spend management solutions within 6-12 weeks depending on complexity.
Q: How does spend management compliance differ in Australia compared to other markets?
A: Australian businesses must address unique GST requirements, FBT management, ATO reporting standards, and local payment processing systems that international solutions often miss.
ProSpend is committed to helping Australian mid-market businesses achieve their full innovation potential through strategic spend management. Contact our team to learn more about our solutions.