KPMG’s inaugural Enterprising cities report offers a detailed analysis of 12 of Australia’s fastest-growing cities. These cities are a crucial part of Australia’s mid-market, often referred to as the ‘engine room of the nation’s economy’, as they employ nearly a quarter of all Australians and contribute 40 per cent of total national business revenue.

The report shows the 12 cities in the list represent approximately a third – upwards of 35 per cent – of Australia’s economy. In recent years, they have outpaced the national growth trend. Mid-market businesses in Australia's enterprising cities cover a wide range of industry sectors including technology, manufacturing, banking and financial services, retail, and health and human services. They come in all shapes and sizes from successful start-ups to sole traders, private companies, and family businesses.

Technology has transformed the landscape and supported exciting growth in these centres with digitally-enabled enterprising cities being connected locally and able to readily expand into national and global markets. What’s more, Australia’s accelerating energy transition and net zero objectives are also providing new opportunities for businesses in regional Australia.

The report spotlights some challenges for enterprising cities, including navigating regulatory environments, dealing with inflationary and cyber risk, identifying opportunities to invest, maximising the benefit of regional character, and working with local government and other authorities to drive regional prosperity.

A key issue is talent attraction. KPMG research suggests the nation needs an estimated 6.5 million digital workers by 2026, which is why mid-market companies are concerned about their ability to train or recruit enough staff in the skills required for a digitised future. At the same time, these cities are now seen as attractive destinations in their own right drawing people and enterprises from big metropolitan capitals and attracting attention from overseas companies seeking to set up and invest in these rising regional centres.