Alternative Business Model for Mongolian Entrepreneurs Theme Develop

Alternative Business Model for Mongolian Entrepreneurs Theme: Develop BAT-ORSHIKH ERDENEBAT 29 APRIL 2015

Mongolia • Territory 1, 5 mln sq. km • Population 3, 0 mln • Livestock animals 52, 0 mln • 16 strategic deposits Perth, Australia 2015 2

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 Perth, Australia 2015 3

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 • 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. alternative business models to make not-dependent on the mining industry. Perth, Australia 2015 4

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. Perth, Australia 2015 5

Challenges • Lack of technology • Inability to meet standards • Lack of human capacity • Diseconomies of scale • Limited access to credit Perth, Australia 2015 6

Project activity Input stakeholder Financial grant, assistant team, workshop room, transportation, stationary Project activities Interviews, workshop, article, media release Short/ Long -term outcomes IMPACT Target beneficiary Perth, Australia 2015 Specialization business model Diversification business model Competitive and sustainable local businesses outside of the mining sector 7

Priority sectors • Meat, textile (wool, cashmere), hospitality, ICT, leather and horticulture - Survey partnered with USAID • Livestock and service industry have a significant growth Perth, Australia 2015 8

Enterprise Facilitation - Assessment Perth, Australia 2015 9

Youth Entrepreneurship Program • Business idea development • Business plan development • Startup business • Business networking Perth, Australia 2015 10

Wool shearing, handling and marketing project • Wool shearing techniques • Women participation • New business • Wool value chain Perth, Australia 2015 11

Interviews Perth, Australia 2015 12

Next step • Capacity/ resource assessment • International and regional market study • Inclusive growth policy through diversified SME development Perth, Australia 2015 13

I am happy to talk further batorshikh@dsmongolia. org • www. ybmongolia. org • www. bizguide. mn • Perth, Australia 2015 14