Growing Entrepreneurs Rapidly (GER) Initiative

CHF International
www.chfmongolia.org

In August, the GER Initiative helped to improve or expand 81 businesses, created 15 start-up businesses, and generated a total of 97 new jobs. The GER Initiative matched 70 ger area residents to jobs this month.

Financial Services

GER facilitated 44 loans valued at $48,734 with local partner banks, and one USDAfunded Capital Augmentation Fund (CAF) loan valued at $2,602 was disbursed through a local partner bank. On August 14th, GER and XacBank in Selenge Aimag held a meeting for clients interested in financing to start their small businesses. XacBank officials explained to the participants that XacBank can offer loans with preferential terms including no collateral for loans under $868 (1,000,000 MNT), and 75% collateral for loans over $868. Eight of the 28 participants were eligible for consideration and GER has started to assist the clients in applying for loans with XacBank.

Training and Consulting Services

GER conducted 40 trainings with 35 clients participating, and 86 consultations were provided to 68 clients. GER organized training in Choibalsan on insect control for vegetable farming based on a survey of challenges faced by local vegetable growers. A teacher from the Technology College in Choibalsan delivered field training at the college’s greenhouse and taught the clients simple, biological methods for fighting insect infestation. Sixteen GER clients participated in the training.

As harvest season is approaching, GER clients are interested in properly storing their harvested crops for long periods. In Zuunmod, GER provided vegetable preserving training for three clients. This year the clients grew vegetables in a small field in order to gain experience. Next year the clients are planning to enlarge their field and expand their vegetable preserving business.

At the request of the World Vision (WV) in Bulgan, GER provided vegetable preserving and storage training for WV’s clients. A total of 25 clients from Bulgan and nearby soums attended the training. The trainees learned how to preserve common vegetables, such as cucumbers, tomatoes, carrots and garlic, how to make kimchi, how to build storage facilities, and storing requirements for different vegetables.

In June, GER provided consulting services to Darkhan-Uul aimag’s Council for the People with Disabilities (CPD) to prepare a business plan and financial calculation for a proposed Rehabilitation Therapy Room for their members. This month, CPD received financing from the Norwegian Lutheran Mission (NLM) and the Darkhan Red Cross Society. NLM supplied CPD’s Rehabilitating Therapy room which they rent from a local school with the necessary equipment, valued at $3,035, and the Red Cross donated $260 to use for mobile therapy services for disabled and retired residents.

Information Services

GER provided 368 information services to 191 clients during the month of August. In Erdenet, GER has been collaborating with the local television channel “TV-10” for a half year on its TV show “The Taste of Life,” which motivates local residents to improve their lives on their own. Over 10 GER clients participated in the show, talking about and demonstrating their businesses. This month GER started a similar project with another local TV station named “Lkha.” In the August show two Bulgan GER clients participated—Tsetsegdelger, a lumber trader and vegetable grower, and Delgertsetseg, a vegetable grower. Both clients talked about their businesses and Delgertsetseg taught the audience how to make pumpkin jam and pickles.

Employment Services

GER matched 70 clients to jobs and 11 clients graduated from vocational trainings at partner training centers in August. Two employment trainings were also provided to two clients. A total of 72 jobs were generated by GER in August. On August 13th GER held a Labor Day in Tolgoit in UB. Over 60 clients came to the branch office and received employment information. By the end of the month, six clients were employed by local employers – mostly in the construction sector.

Linkages and Trade Fairs

GER facilitated linkages between businesses worth approximately $30,933 this month. New linkage relationships were established with IMC Mongolia LLC – mining, geology and consultancy; Birga Tour – tourism company; KMGM LLC – geology; and Claude Merchez –import partner from France.

GER met with the Darkhan aimag’s Chamber of Commerce to prepare for the “Darkhan Partnership” Trade Fair which will be organized on September 5th – 6th by the Darkhan Chamber of Commerce and Government Office of Darkhan-Uul aimag. GER was able to negotiate a lower participation fee for GER clients. The trade fair is held annually and includes companies of the Darkhan Chamber of Commerce, as well as large businesses and SMEs from UB and Erdenet. It is an important opportunity for GER clients to present their products and to establish new business relationships.

On August 25th GER organized a Business Linkage Day event in Choibalsan to introduce souveneir, dairy and vegetable products from GER clients to the largest local supermarkets, restaurants, and government organizations. The event was also an opportunity for clients to hear from foreign volunteers who live in Choibalsan and solicit their ideas for product and sales presentation improvements. Eleven GER clients participated and earned $184 from sales and received orders for $21. The Khishig supermarket agreed to sell felt crafts produced by GER clients. The Olikhon supermarket will also now sell the vegetable and dairy products of GER clients.

Business Groups Development

GER worked with 96 active groups this month. No new groups were formed and two groups in Darkhan disbanded. In Ulgii, GER provided New Business Group training for three potential clients interested in working as a tailoring business group. The training illustrated the advantages of working together as well as the responsibilities and duties of members when working as a group. The participants were satisfied with the training and are now seeking further trainings and consultancies to strengthen their group.

On August 1st a solar eclipse passed through western Mongolia and brought a number of tourists to Ulgii. The “Ata Mura” business group used the opportunity to promote and sell their traditional Kazakh embroidery to the visiting tourists. In Erdenet, two informal business groups received technical advice on forming and registering as a formal business entity from GER. As a result, the Gazriin Uguuj agriculture business group was registered as a Cooperative, and documentation is pending for the other group called Erchim.

Transition of GER Initiative

The GER Initiative has been extended for up to six months beginning October 2008. As part of this extension CHF International will partner with a local NGO to take over the technical and financial services currently provided by CHF staff to GER clients. GER’s partner local banks and business linkage companies have been longstanding supporters of the GER activities. CHF consequently approached these organizations, and in August representatives from Khan Bank, XacBank, Centerra Gold, Eurofeu, and the Education Channel formally agreed to establish and lead the Mongolian NGO, “Development Solutions” (DS).

In September, CHF will finalize an agreement with DS under its USAID and USDA programs and, with final approval, begin joint activities in FY2009. During this time, most CHF local staff involved in the GER Initiative will be hired by DS. CHF will retain a core technical and administrative unit to oversee and support the activities of DS. The same NGO will continue to provide business development technical services under CHF’s USDA-funded program, scheduled to launch in 2009. DS will be funded in part through service fees collected from client businesses and will work to structure its core operations so that it can continue to assist client businesses beyond the USAID and USDA program timeline.