USAID is helping thousands of Mongolia’s small and medium-sized entrepreneurs conceive business plans, access credit, and multiply their investments. This support diversifies the economy and makes economic growth more inclusive and sustainable in Mongolia, where dependence on extractive industries and underdeveloped manufacturing and services sectors have made the economy vulnerable to global price fluctuations. USAID’s assistance is helping small and medium enterprises grow and create thousands of new jobs.
PROJECTS
Business Excellence For Sustainability and Transparency
While over 75 percent of businesses registered in Mongolia are classified as small and medium enterprises (SMEs), their growth has been limited due to lack of financing. Financial institutions in Mongolia are risk averse with respect to financing for SMEs. In many cases, SMEs are either unable to obtain financing or only under high interest rates. The Business Excellence for Sustainability and Transparency (BEST) activity works with government and private sector partners to foster an environment conducive to SME growth, help SMEs access loans from private and national financial institutions, improve corporate governance, and build lenders’ knowledge. BEST also supports a small grants program for disadvantaged, but otherwise well-qualified, startups, SMEs and NGOs. Since inception, the program has helped to facilitate over $55 million USD in lending to SMEs.
Engendering Industries
The USAID Engendering Industries program works with approximately 30 electricity and water utilities worldwide, supporting efforts to expand women’s employment in traditionally male-dominated fields. Participants receive training on best practices to promote gender equality, tailored management coaching, and a 12-month executive leadership development program. Engendering Industries has been working with two Mongolian organizations: the Water Supply and Sewerage Authority of Ulaanbaatar City (USUG) (stemming from USAID collaboration with the Millennium Challenge Corporation, which is currently working with USUG under its Water Compact that improves the supply and quality of Ulaanbaatar’s water supply) and the Energy Regulatory Commission, one of USAID’s key partners under the Mongolia Energy Governance activity.
