BUSINESS DEVELOPMENT SERVICE ASSESSMENT REPORT

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aimag is higher than the previous survey aimags 4 ; Uvs businesses supply 46.8% of hay grass and 9.3% of fodder of entire intake of 5066 livestock. This is deeply related to that there is an adequate number of small and medium planting businesses, which means they have likely pretty good availability of grass and fodder. T/TA: Of businesses that were surveyed, half were previously involved with trainings, many of them were free of charge training. Though they were free, businesses consider that first, training is necessary and second, training has to have certain amount of fee. Majority thinks that T/TA would be effective if provided by projects, but it was clear that they would also accept training provided by local institutions. Some people believe that they would find ways for further cooperation from project run trainings, some think that project run trainings employ professional trainers, has adequate scope of coverage in terms of topics and project work more accountable, but still there is a possibility that local training institutions and BDS providers could meet these expectations. Majority of respondent need technology training, but equal value was given to business trainings but they need more information on importance of business trainings beforehand. Regarding information on proposed trainings, they find out from local soum and bagh governors, soum welfare inspectors and veterinaries. This demonstrates that those people would be able to reach remote business operators, if equipped with timely and authentic information on trainings. All respondents had proper equipment for displaying VCDs, which offers unique possibility of using this simple method for some important trainings ensuring that they are covered in training series. VCD training could include not only technology training, but also production equipments, their technical specifications, and operation manual, which could be the most appropriate and effective way. Access to financial service: Limited number of financial service providers in the rural area makes the market less competitive resulting that that financial products offered for business has tighter and higher requirements than the businesses surveyed in the previous surreys 5 . Educational institutions: Local institutions are capable of providing short term business support, specifically technology training as they have pretty well set practice business and well equipped with professional trainers as well as they have good reputation among rural businesses. Training centers: Sain Tus NGO and Center for supporting youth competitiveness have reached level of break even or covering costs with their income, which is much higher indicator that any other NGOs in other aimags. But the NCOs are only breaking even. 7 of all herding business operators prefer local professional training institutions (not considering that another 6 said it does not matter what organization provides training) showing that there is a previously set expectation to pay for the services. Majority of people thinks T/TA should be provided by projects because they look forwards to potential cooperation with project that is why they prefer the projects. If such conditions are set by local BDS providers, rural businesses would warmly accept the training that they provide. Financial service providers: Bank branches often encounter some major obstacle in working with their clients such as businesses do not keep track of their income and expenses. If businesses meet that conditions, it could ease the financial institutions to explore potential of disbursing loan on other hand businesses would be able to effectively manage their finances. San Audit LLC is possible to provide financial consulting along with its assurance service. But banks expressed that they do not fully rely on the audit reports. For improving the financial accounting and record keeping for the small business operators and business entities, all these financial service providers can work together. 4 Previous Mercy Corps survey in five other aimags stated that herders in these aimag prepare 22.15% of grass and 3.62% of fodder of all required intake of animals 5 For the previously surveyed aimags, loan interest rate ranged between 3.5-1.5%. 23
Representatives of big commercial businesses: As per larger businesses in Uvs aimag, they are considered as sustainable market that procures from herders, and then add value. Only Bumnomin company procures 2000 horses, 2000 cattle and 10000 small ruminants, which is large and sustainable source of income for herders. Though meat processors are interested in buying animals effective from June, but herders often refuse as animals have not gained enough weight and herders have cash on hand generated from spring cashmere season. Meat processors also say that they have difficulty in negotiating with herders that own more than 1000 animals. Recommendations Based on the survey findings and consolidation we recommend the following for the BB REDP: 1. T/TA is one of highly demanded services among rural businesses, so we evaluated the possibility of paid training involvement by businesses and thoughts of businesses on potential service providers, we recommend: a. Provide local businesses with T/TA through intensive support to local BDS providers; b. Organize more and more business idea generating training, expand and develop rural household level businesses though the business and technology training series; c. Support specific value added businesses such as felt making, rye and flour production, vegetable preservation and processing as the soums will be connected to central power line in the near future and organize T/TA events; d. Rural herders generate most of their income by from direct sale of raw materials. Dairy processing is limited, so it important to create possibility to earn additional income from dairy business through training businesses on dairy processing technology; e. Support businesses that rent tractors and combine harvester to small and medium plantation businesses; f. Support cooperatives specialized in meat and wool procurement; g. Support sustainable business record keeping practice and develop record keeping systematically by offering a record keeping book for businesses; h. Distribute VCD training and link local business operators with local BDS providers through the VCD based training. 2. Local BDS providers have advancement in terms of cost recovery, so the activities should focus on building their capacity: a. Assist in developing organizational strategic plan, b. Improve skills of trainers, c. Support development of important training modules d. Link local institutions with domestic and international volunteer programs e. Support them to provide input intermediary services for rural businesses, assist in creating database and support in linking with larger input suppliers and contracting f. Provide with opportunity to select their own client and get their clients involved with loan guarantee program 3. Business operators sell wheat for livestock fodder because price for selling meat and fodder is the same. Therefore, it is important to study wheat value chain to identify the gaps and support the participating businesses in the wheat value chain 4. Large source of herder income is meat and animal business as there is a sustainable market for that type of business: a. Link herders, meat processors and veterinarians and support this market with systematic development opportunities (See attachment 2 for more details) b. Support herder businesses that buy animas and sell afterwards after the weight gain 24
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 and 14: training to local citizens under th
Page 15 and 16: With its 20 billion MNT loan portfo
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: − Saint Us NGO always invites loc
Page 27 and 28: 3. Conduct assessment on wheat valu
Page 29: Attachment 2. Opportunities of syst

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