BUSINESS DEVELOPMENT SERVICE ASSESSMENT REPORT

c. Though meat market value chain study might be important, but conduct this survey
after reviewing the similar study in other aimags and preliminary evaluation of meat
value chain in Uvs aimag. If this is found to be troublesome, then conduct meat
value chain survey specifically for Uvs aimag.
d. Improve operations of local laboratories and support the operation
5. Market day or similar events are organized at aimag and soum level and this event is found
useful by the businesses. Therefore the project could support the organization of such
events targeting on attracting large population or support on promotion & marketing side so
that the frequency of events are close (similar to Sunday market day etc)
6. Many of the obstacles in businesses are related to availability of inputs, there is direct
relevance to access to financial services, terms and bank loan interest rate. Therefore:
a. Get rural business operators involved with loan guarantee program and provide with
assistance in getting low interest loan for buying required equipment
b. Reduce costs associated with loan study by getting auditing companies carry out
the loan study and provide businesses with training on financial record keeping,
c. Identify and implement ways to use commercial bank credit information database
(specially for the equipment sold in leasing terms) effectively
d. Create financial services (with lower interest rate) for the planting business
operators and link business with insurance companies
Conclusion
• Current situation of Uvs aimag BDS market
Findings of this survey demonstrate that soum based non-herding businesses are operating at
small household level while the aimag center based businesses have large scale sustainable
operations. For the non herding businesses, efficient and productive equipment supply is
important, but businesses often lack information regarding equipment supply. None of the survey
respondent-businesses have knowledge on the equipment repair and maintenance service
providers. Herding business operators have relatively adequate supply of business inputs and they
usage level is pretty high. Large portion of herder income is generated from meat and animals
sales as there are large meat processing and exporting businesses run in Uvs aimag witnessing
that the market is sustainable. Therefore linking the stakeholders in this market is prerequisite for
the systematic development of this type of market.
It was also observed that local business operators are ready to pay for BDSs, but there is limited
number of institutions providing such services currently. T/TA can be potentially provided by local
organizations such as Sain Us NGO, Ulaangom College and San Audit LLC as they have
advanced businesses that covers their costs by the income. Support these institutions and
strengthening their capacity would enable the BDSs provided to local businesses with high quality
and sustainable manner. These BDS providers should not limit their activities with only T/TA, but
also they are able to provide other services that add value to rural businesses and individuals.
Likely, isolation from capital city may affect the local businesses, but still there is gap in local
businesses in supplying the local demand. For developing businesses to meet local demand, high
quality and sustainable provision of BDS plays key role.
• Project involvement in BDS market
Based on the survey findings and consolidation, we recommended eight steps as stated below:
1. Provide required T/TA for rural businesses
2. Build capacity of local BDS providers
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