Leveraging SME Finance Through Value Chains in the Carec Landlocked Economies
Boojoo, Lakshmi | October 2019
Abstract
This paper analyzes the situation of SMEs in Mongolia, especially their financial situation and financing mechanisms, the business environment, the existing policies, and value chain analysis, and makes suggestions for enhancing their development. Value chains that have their potential developed further are the cashmere, tourism, fruit, and berry sectors. Key factors in the development of SMEs in Mongolia are discussed along with factors hindering their development. There is no unified database on SMEs and different organizations are responsible for gathering data on them. Thus the statistics on SMEs are inconsistent and fragmented. Therefore, it is difficult to present a clear picture of SMEs and make sound policies based on reliable, coherent analysis and data in favor of SMEs. Due to the sparse population, traditional banking services are costly, especially outside of the residential areas. A lack of sound credit infrastructure and governmental regulations are the main problems in the credit market for SMEs. Financial institutions offer only a few available financial products, due to the underdeveloped Mongolian financial sectors, insufficient government support, and the lack of a regulatory framework. The paper concludes by emphasizing the need to: (i) improve the quality of data on SMEs and establish the relevance of in-depth study of financial literacy to obtain a clear picture of them and develop effective policies; (ii) improve the regulatory framework for business, especially the fair competitiveness regulations; (iii) develop the regulatory framework for other sources of funding; (iv) develop a long-term national program for SMEs.
Citation
Boojoo, Lakshmi. 2019. Leveraging SME Finance Through Value Chains in the Carec Landlocked Economies. © Asian Development Bank Institute. http://hdl.handle.net/11540/11245.Keywords
Urban Development Finance
Trade Finance
Small Business Finance
Rural Finance
Roundtable on International Trade and Finance
Regional Development Finance
Public Service Finance
Public Finance
Project Finance
Private Finance
Nonbank Financing
Non-Bank Financial Institutions
Municipal Finance
Local Government Finance
Local Currency Financing
Limited Resource Financing
International Financial Institutions
Infrastructure Financing
Industrial Finance
Government Financial Institutions
Government Finance
Financing of Infrastructure
Financial Sector Development
Financial Regulation
Small Business Finance
Taxation
Public Accounting
National Budget
Municipal Bonds
Local Government
Local Taxes
International Monetary Relations
International Financial Market
International Banking
Central Banks
Business Financing
Capital Resources
Budgetary Policy
Capital Needs
Corporate Divestiture
Capital Instruments
Pension Funds
Insurance Companies
Banks
Portfolio Management
Fiscal Administration
Economics of Education
Development Banks
Bonds
Small business
Medium business
Small to medium sized enterprises
SMEs
Use tax
Taxing power
State of taxation
Tax-sales
Tax revenue estimating
Tax planning
Spendings tax
Special assessments
Tax administration and procedure
Sales tax
Real property and taxation
Progressive taxation
Effect of taxation on land use
Effect of taxation on labor supply
Intergovernmental tax relations
Inheritance and transfer tax
Energy tax
Small business
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