Understanding Australia’s mid-sized businesses
A deeper understanding of MSEs could provide new perspectives and policy options to tackle Australia’s long-term economic problems.
IISA sees strong signs that MSEs are worthy of attention. They are:
- Innovative: MSEs are strong innovators – a critical lever for long-term productivity.
- Productive, value-adding exporters at scale: Australia’s MSEs are turning points in scale, being more export-oriented, more productive, and adding more value than small firms.
- Competitive: MSEs are supply chain connectors, specialising to be competitive at scale.
- Resilient: MSEs have more resources to withstand and adapt to shocks than smaller firms.
- Agile: MSEs mix small business proximity to customer with industrial capability at scale.
- Regional: MSEs grow their share of the economy in regional and remote areas, where large companies are few and scale is still essential for communities impacted by distance.
- Growth potential: The highest rate of high-growth manufacturing firms is in the MSE cohort.
- Essential and enabling: MSEs contribute strongly to priority sectors and essential services.
Building understanding to better tailor programs
IISA aims to continue the discussion and grow the evidence base on the missing middle in future analysis. We will collaborate across government, industry and research to:
- explore success stories of thriving MSE segments in Australian regions and overseas
- highlight MSEs as a distinct cohort in innovation and growth programs
- consider ways to refine programs to uplift MSEs and meet their distinct needs
- identify effective levers that reduce barriers to MSE scale and innovation
- explore demand side factors for MSEs to innovate.