Print page

SME Development Project Contributes to professional SME in Mongolia

Project completed
sme-project
G. Gerelsaikhan, 25, is a young entrepreuner, who produces pressed and conically shaped incense blends in various fragrances. She was able to increase her production thanks to the SME development project support. © SDC © SDC

To assist SME development in Mongolia, the Business Professional Network (BPN), a Swiss initiative, specifically targets niche markets with the aim of contributing to a more professional, competitive, productive, diversified and service-oriented SME sector in Mongolia.

Country/region Topic Period Budget
Mongolia
Inclusive economic Development
SME development
01.02.2012 - 31.01.2017
 CHF  1’405’000
The project in brief
Background

70 percent of Mongolia’s GDP is generated by the private sector. Mining is the most important economic sector and attracts the largest investments. SMEs provide the majority of employment opportunities.

GDP per capita in 2010 was USD $2,251. Mongolia ranks 100th on the HDI, and has a (income disparity) Gini coefficient rating of 0.33 (CH: 0.34).
Objectives

SMEs contribute to the development of Mongolia’s economy and provide sustainable employment and income opportunities
Target groups

Direct beneficiaries: 110 motivated urban and rural small and medium-size male and female entrepreneurs with established business entities, employing an average of 10 staff.

Indirect beneficiaries: 1500 employees (of which 750 new job places)
Medium-term outcomes

To support in a structured and demand-oriented manner highly competitive SMEs - managed by both women and men - in all aspects of successful and ethically high-standard business activity.
Results

Achieved results:  

Business trainings, peer coaching and soft loans are helping urban small-scale entrepreneurs become professional and competitive.


Expected results:  

1. Supported companies owned and managed by both women and men increase their business turnover, employ more staff and generate income.

2. Supported companies succeed in niche markets and contribute to a “brand” for Mongolia.

3. Supported companies organize themselves and become and influence the SME sector
Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Swiss Non-profit Organisation
  • Other Swiss Non-profit Organisation


Other partners

Local partners: Ministry of Food and Agriculture, Financial Regulatory Commission,
Mongolian National Chamber of Commerce and Industry, Mongolian National Employer’s Federation.
Coordination with other projects and actors

SDC-funded projects:

  • MORE (Market Opportunities for Rural Entrepreneurs)

  • VET ( Vocational Education and Training Project)
Budget Current phase Swiss budget CHF    1’405’000 Swiss disbursement to date CHF    1’385’205
Project phases

Phase 1 01.02.2012 - 31.01.2017   (Completed)

  • Sector according to the OECD Developement Assistance Commitiee categorisation INDUSTRY
    Sub-Sector according to the OECD Developement Assistance Commitiee categorisation
    Small and medium-sized enterprises (SME) development
    Cross-cutting topics The project takes account of gender equality as a cross-cutting theme.
    The project takes account of democratisation, good governance and human rights as cross-cutting themes.
    Type of support Official development assistance (ODA)
    Type of collaboration Bilateral cooperation
    Finance type Aid grant
    Aid Type Project and programme contribution
    Tied/untied aid Untied aid
    Project number

    7F08095

The BPN focuses on existing SMEs led by motivated and talented entrepreneurs, both male and female, who will benefit from systematic and applied business training in Mongolia’s relatively conducive business environment.

The BPN project provides intensive training, a loan system, business organisation and political leverage-building for its selected clients. It also promotes ethics for best business practices, which often requires a shift in the way of thinking of entrepreneurs in post-socialist countries.

Start of page
Last update 05.12.2024