Australia’s economy is constantly evolving, with small businesses that can move quickly expected to be the ones who benefit from new opportunities over the next 35 years.
That’s according to PricewaterhouseCoopers (PwC), which has recently released its predictions for what the world and Australian economy through to 2050.
According to the research, Australia’s position globally will drop, as larger economies in Asia continue to grow. Countries like Bangladesh, the Philippines and Pakistan are all expected to see their economies overtake Australia.
While these fast-growing countries will likely overtake Australia, size-wise, PwC suggested that 2050 would also see the focus of Australian businesses shift. Rather than competing on scale, the research suggested that organisations would instead be focussed on small, niche companies that can respond quickly.
This trend was cited by PwC Australia economics partner Jeremy Thorpe in an exclusive interview with SmartCompany.
“The Australian economy is not going to be as large in relative terms and so our companies are not going to be competing on scale,” said Mr Thorpe. “They will be competing at the smarter end.”
In particular, Australian companies will be relying on innovative technology to remain competitive across the entire scope of their business. Effective business accounting software is just one example of the way technology is revolutionising the way organisations operate.
Importers and exporters are also likely to benefit from continued economic growth in the Asia-Pacific region. As economies like the Philippines expand, the potential for further trade in the region is only going to increase.
Regardless of the specific approach companies take, small-business owners will still need to start thinking strategically about how they prepare their business for the future and realise new opportunities for growth. By taking this step, organisations will be in a much better place to realise further expansion in their company.