BUSINESS DEVELOPMENT SERVICE ASSESSMENT REPORT

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For business operators, the NGO provides IT, graphics design, web design, network security and IT business opportunities training. Common software application training is held for two hours every day for 24 hours dominated by basics of computers. Service fee is 20 000 MNT. For advance level training, the NGO provides such services under orders and demand from the clients. As part of its training session, the NGO provides software installation, hardware repair, virus clearance and professional services offering 2-3 month warranty period as well. Other incentives for trainees are 10-20% of discount for the consecutive training or computer testing once a month etc. With the income generated from paid training, the NGO funds other activities for the community. It also implements some activities with Child Protection and Anti violence organizations on cost share basis. Financially, the NGO is independent, but it is impossible to provide free training, only choice is that the clients have to pay for the training. But the drawback is that many of the small business operators just ignore the paid training, as they have some other choices. Financial service provider 4. San Audit LLC Since 1996, San Audit is providing auditing and assurance services for local government and businesses. The company provides its auditing services to 35 government agencies including government offices, schools and hospitals and more than 30 businesses. Aside from government and private business, the company also provides services to relief and project organizations like Sain Tus NGO, Red Cross and so on. Currently, the company employs three auditors and 2 associate auditors. The company provides the following services to government and private agencies. They are: − Financial services: Assist in developing tender proposals (Highly demanded among local businesses competing for tenders) and financial reporting (for 20,000-30,000 MNT per entity) − Developing staring balance sheet for newly established entities (20,000 MNT) − Audit and certification services; service charge is different e.g. for government agencies, the company complies with the Ministry of Finance approved tariff and for businesses, the company complies with CPA Association tariff (70,000- 200,000 MNT) − Training of procurement and logistics − 28 hour training per year on internal auditing, its systems and rules. − Works in cooperation with State Auditing Committee branch in the aimag center. 5. Khan Bank
With its 20 billion MNT loan portfolio, Khan bank disburses business loans for one thirds of its total loan portfolio. 0.6% of total loans are currently considered undue. The bank offers 1.5-2.5% loan interest rate for businesses depending on various factors like the business operation and availability of collateral. The total loan amount is flexible and is disbursed for up to 2 year period. Branch directors are responsible (according to their scope of work) for customer service including provision of information for clients. Khan Bank does not require special proposal for disbursing loan, instead it conducts interview according to a template guidelines, which is then put on the study template. When business operators are in trouble in course of their business, bank officers do not always consult them on what to do. Last years, the bank conducted an intensive awareness work on savings, consequently its year 2004 deposit (demand) amount of 130 million MNT increased to 2.5 billion. The bank announced the year 2008 as year of customer training, but no tangible activity has been carried out as the bank is planning large scale activities in upcoming April and May. Rural business operators are much more interested in leasing related information than they used to be. Herders can not use large database of leasing service providers, and even they do not know what type of information they need. For this reason, banks do not often display the leasing related information on the public bulletins. Still there is an opportunity for local business operators to sell their produce under leasing terms. The bank is also operating as lending organization for the following projects. For this type of funding, businesses have to present their plan and proposal, even some documents disqualify, but bank officers often fail in consulting for the proper way, due to their limited working time. The projects are: − JBIC loan- 0.83% of interest rate for 7 years, a total of 600,0 thousand USD portfolio − France Food Assistance Loan- free of interest for up to two years for 10 million MNT − Employment Support Loan- 1.3% of interest rate for one year period. A total of 1 million for each borrower is available. In case that the business operators create jobs, the Employment Support Foundation pays them equal amount with their interest rate paid to the bank. − Private Sector Development Loan from World Bank- a total of 600,000 USD portfolio for 0.83% of interest rate for up to 7 years. As per insurance, only car leasing service is obligatory for insurance, because other businesses are exempt from insurance. For herder business loan, insurance is subject to loan, the bank offers 0.1% of interest discount in case that the livestock in collateral is insured.
Page 1 and 2: BUSINESS DEVELOPMENT SERVICE ASSESS
Page 3 and 4: CONTENT Table descriptions.........
Page 5 and 6: mining industry, 23 construction an
Page 7 and 8: e) Survey data processing Though th
Page 9 and 10: they sell their wool and cashmere t
Page 11 and 12: As all business operators that were
Page 13: training to local citizens under th
Page 17 and 18: company uses local laboratory for h
Page 19 and 20: 2. DONOR PROJECTS No Name Target gr
Page 21 and 22: Sain Tus NGO No Services Facility S
Page 23 and 24: − Saint Us NGO always invites loc
Page 25 and 26: Representatives of big commercial b
Page 27 and 28: 3. Conduct assessment on wheat valu
Page 29: Attachment 2. Opportunities of syst

BUSINESS DEVELOPMENT SERVICE ASSESSMENT REPORT

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