BDO Growth Index
We are delighted to present the 2019 edition of the BDO Growth Index report and the launch of our Growth Index Comparison Tool.
For a long time now, the middle market has been overlooked when it comes to policies, business analysis and its contribution to the health of the Australian economy. Middle market businesses are often combined with the ‘small-to-medium’ segment – yet, they offer characteristics that make them distinctively unique.
BDO is the leading accounting and advisory firm focusing on middle-market businesses in Australia - we have built our business on servicing their needs – and our experience shows they have different needs to the top end of the market and smaller ‘mum and dad’ businesses.
Middle-market businesses are unique in their make-up. Often starting as family-run, private businesses that grow organically – and as our client relationships tell us, they all have a different growth story and a number of distinct perspectives that nourish the Australian economy.
We recognise this sector of the economy punches significantly above its weight, locally and globally and we are passionate about uncovering the growth opportunities to help these businesses, and the people involved within them, achieve their goals.
Our curiosity lies with the fact that these businesses are a minority in number - comprising approximately 2.1% of all registered Australian tax-paying business - yet they contribute in excess of 20% of net corporate tax revenues for all business types, driving business growth and employment substantively.
As our past research has found, middle-market businesses come in all shapes and sizes – making it hard to define and compare them. We want to know how we can work with this dynamic segment, by delving into their growth drivers and giving them tools that enable them to compare key data insights.
That’s the impetus for BDO’s Growth Index Comparison Tool - an interactive, online benchmarking tool. This tool allows us to see the shape of the mid-market based on sector, location, company type, and revenue, and to enable middle-market businesses to measure themselves against their peers.
As part of the launch of this tool, we have analysed a substantial portion of the financial results of middle-market businesses in Australia – by looking at 1,186 middle-market businesses, who have collectively contributed $440 billion to the Australian economy over their most recent financial year. We analyse their growth drivers and provide insights into key sectors shaping the middle-market.
Our analysis shows middle-market futures are looking very bright. We are seeing strong evidence of growth over the last 5 years. This positive trajectory contradicts the doom-and-gloom scenarios predicted of recessionary times which are considered to be fast-approaching Australia1.
Admittedly, our analysis is historical, whereas forecasts are future-orientated, so it’s an interesting time to be observing the middle-market businesses.
We will be regularly updating our comparison tool, so middle-market businesses can continually track their progress. If you require assistance using the tool or would like further information for your middle-market business, please contact your local BDO Adviser.
We hope you enjoy the report and benchmarking tool.
1Australian growth rate half of peers, GDP Growth slides, IMF slashes growth forecast, Economy faces real challenges