Small Medium Enterprises

Micro, small, and medium-sized enterprises (MSMEs) are one of the most dynamic sectors in Mongolia. This sector comprises 77% of total registered business entities, 72% of total workforce, 17.8% of gross domestic product, and 2.3% of total exports.1 Women make up a large share of MSME entrepreneurs in Mongolia.2 Most MSMEs operate in the trade (51%) and services sectors (32%), followed by manufacturing (19%) and agriculture (6%).3 The informal economy in Mongolia is estimated to contribute from 9.2% to 15.7% of gross domestic product.

A high share of female MSME entrepreneurs indicated declines in revenue. Compared to 50% of male entrepreneurs surveyed, 85% of female respondents reported supply chain issues such as shortage of raw materials (83% compared to 34% among male respondents), and reduced demand for products and services (59% for females versus 31% for males). Both female- and male-owned enterprises suffered cash flow shortages and difficulties in loan repayment. However, female entrepreneurs indicated slightly less difficulties in paying rent (28% compared to 31% of their male counterparts) and in financing their investments (21% compared to 41% of male respondents). There were more challenges in paying employees for female entrepreneurs at 37%, versus 28% of male entrepreneurs), possibly reflecting the higher share of female entrepreneurs in the manufacturing sector in the sample (31% compared to 6% among male respondents).