BAT-ORSHIKH ERDENEBAT29 APRIL 2015

Alternative Business Model for Mongolian EntrepreneursTheme: Develop

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Mongolia

• Territory 1,5 mln sq.km

• Population 3,0 mln

• Livestock animals 52,0 mln

• 16 strategic deposits

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History

• 1901 – Eruu Mongol Ore Gold Mine- Belgium, Russia, France, Germany and China (17.5% income to

Mongolia)

• 1976 – Erdenet copper mine / Former Soviet Union

• 2003 - Boroo Gold Hard Rock Gold Mine / Centerra Gold

• 2010 - Oyu Tolgoi Mine / GOM According to the International Monetary Fund (IMF), Mongolia will

be the largest beneficiary - with the country receiving up to 71% of the income from the mine. BBC

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Challenge

• More than 86% of the national economy was dependent on the mining industry as of 2013.

• 49% of registered businesses shut down in 2014-2015.

• Local businesses are searching alternative business models to make not-dependent on the mining industry.

• to create dependency on mining

industry.

• in doubt about the future.

• not ready for upcoming risks and

difficulties during the downturn

and/or closure of mining industry.

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RWP Alternative Business Model for Mongolian Entrepreneurs

• The overall objective of this project was to analyze the alternative business development strategy for mining affected areas to aid in diversifying, specializing and strengthening the local economy and society.

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Challenges

• Lack of technology

• Inability to meet standards

• Lack of human capacity

• Diseconomies of scale

• Limited access to credit

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Project activity

Specialization business model

Interviews, workshop, article, media release

Financial grant, assistant team, workshop room, transportation, stationaryInputstakeholder

Project activities

Short/ Long-term outcomes

IMPACTTarget beneficiary Competitive and sustainable local businesses outside of the mining sector

Diversification business model

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Priority sectors

• Meat, textile (wool, cashmere), hospitality, ICT, leather and horticulture - Survey partnered with USAID

• Livestock and service industry have a significant growth

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Enterprise Facilitation - Assessment

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Youth Entrepreneurship Program

• Business idea development

• Business plan development

• Startup business

• Business networking

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Wool shearing, handling and marketing project

• Wool shearing techniques

• Women participation

• New business

• Wool value chain

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Interviews

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Next step

• Capacity/ resource assessment

• International and regional market study

• Inclusive growth policy through diversified SME development

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I am happy to talk further

• batorshikh@dsmongolia.org• www.dsmongolia.org • www.ybmongolia.org• www.bizguide.mn