Growing Entrepreneurs Rapidly (GER) Initiative
CHF International
www.chfmongolia.org
In February, Development Solutions (DS) GER helped to improve or expand 40 businesses, created 17 start-up businesses, and generated a total of 55 new jobs. Also this month, GER matched 28 ger area residents to jobs. As an indication of the current slow economic situation in Mongolia, in February 2008, GER helped to improve or expand 86 businesses, created eight start-up businesses, generated 30 new jobs, and matched 40 ger area residents to jobs.
Financial Services
GER facilitated 31 loans valued at $19,638 with local partner banks in February, and nine USDA funded Capital Augmentation Fund (CAF) loans valued at $4,451 were disbursed through local banks. The number of GER loans disbursed in February 2009 is down 33% compared with February 2008, the last month before the Mongol Bank began restricting commercial lending. Short term arrears (less than 60 days late) have also seen a marked increase in recent months.
Training and Consulting Services
GER conducted 76 trainings with 60 clients participating, and 69 consultations were provided to 61 clients. The number of business trainings provided in February 2009 is down 75% from the levels of February 2008, and consulting services are down 60% from the same month last year.
There has been increased demand for vocational training among restaurant owners in Choibalsan, especially to improve their skills and knowledge on making certain types of new dishes using locally available ingredients. On February 7-9, GER organized a two-day vocational training for cooks and chefs; a total of 26 participants took part in the training conducted by a professional from the Gun Shim vocational training center. Clients learned a variety of dishes from the training, including white and red sauces, garnishes, steaks, salads, and rice balls. They also learned several types of dishes from local lake fish, and learned how to prepare a variety of doughs for cakes and pies.
GER provided 267 information services to 190 clients during the month of February. Agricultural business Clients' meetings were held in Darkhan (Feb. 4) and in Bayangol (Feb. 10). In both meetings CHF's Agribusiness Team introduced and discussed the transition to the upcoming USDA project and the Innovating, Monitoring, Promoting Poverty Alleviation by Cooperatives in Transitional Societies (IMPPACTS) staff discussed the advantages of cooperatives. Over 70 people participated in the meetings, including the Project Coordinator from “Mongolian Potato” and the Agricultural Department Director of the “Minii Delguur”grocery store chain.
Half of the participants were new clients interested in agribusiness development services like trainings and consultancy on writing agribusiness proposals. The main challenges to expanding their business cited by the participants were lack of proper equipment, lack of capital, limited sales channels, expensive irrigation systems, land issue problems, and government officials' bureaucracy. The participants were most interested in loan facilitation, agricultural equipment information, finding sales channels, finding partners, finding cheap seed and various agricultural trainings.
At the request of Bugat soum's Vice Governor, GER staff in Ulgii met with soum residents. Bugat soum is the nearest to the Ulgii aimag center and its residents are interested in getting businesses services. In the meeting, 30 center residents were introduced to GER and its services. Starting from March, GER will deliver Business Planning and Business Proposal Writing trainings to the interested clients. These services will be continued under the upcoming USDA program.
Employment Services
GER matched 28 clients to jobs and 21 clients entered vocational training programs in February. GER provided 39 employment trainings for 37 clients (some participate in multiple trainings). A total of 55 new jobs were generated. Job vacancies continue to decline as SMEs chose to hold off on hirings or moved to downsize their workforce. GER's employment matching for February was down 30% from 12 months ago. A total of 11 clients graduated from various vocational trainings at GER partner vocational training centers.
In February, GER signed a new collaboration agreement with Khan-Uul District's Labor and Social Welfare Service Department (LSWSD). At the request of the LSWSD, the GER Tolgoit office provided the “New Start” training course twice for registered unemployed clients. The training lasted for 17 hours and covered topics such as Labor Law, Writing Resumes and Cover Letters, Preparing for Job Interviews and other Soft Skills. In total, 36 clients attended the training. LSWSD has requested additional trainings in March. The same training was delivered by GER in Sukhbaatar district to 32 registered unemployment clients at the request of the Sukhbaatar District's LSWSD.
GER is working with Jiguur Grand (JG), one of the leading construction companies in Mongolia, to prepare workers for the 2009 building season. Jiguur Grand agreed to provide their available job openings to GER. In February, GER placed 30 applicants with JG, four of which have been hired as plumbers and electricians. Next month a new JG service center will open.
Linkages and Trade Fairs
GER facilitated linkages between businesses worth approximately $33,964 this month. This year, DS organized Tsagaan Sar (the Mongolian Lunar New Year) trade fairs in Ulaanbaatar (February 11-15), Darkhan (February 14-15) and Erdenet (February 13-15). The multi-day events gave the handicraft and producer clients an opportunity to introduce their products to the public during this important holiday shopping period. A total of 177 clients participated in the trade fairs; they generated sales income of $36,798, and received orders for an additional $3,154. The top sellers were food producers, whose products included traditional biscuits, dairy items, frozen dumplings and other products such as traditional costumes, leather gloves, wallets and wooden bowls.
Since 2005, GER and Peace Corps have linked vegetable growers to the Seed Programs Inc., a non-profit organization in the USA, providing low-cost, high quality seeds to people in developing countries. This month over 400 GER clients ordered 7,000 seed packets of 18 different types of vegetables not commonly available in Mongolia. GER staff and Peace Corps Volunteer Mrs. Cady Sinnwell prepared information about the types of vegetables available, their germination and maturity terms, nutrition facts, planting guides and other useful information for existing and first time vegetable growers. The ordered seeds are expected to arrive in the middle of March.
Business Groups Development
GER worked with 98 active groups this month. A construction business group “Mandal” was disbanded in Choibalsan, because some members moved away. In Ulgii, Business Group Development training was provided to four carpentry business clients, who were operating individually but interested in working together. After the training, the clients had their meeting and three of them decided to form a group, chose the group leader and adopt the name “Buteelch Bag” (Creative Team). On February 10, GER organized a meeting for agribusiness clients in Sukhbaatar to discuss working as a group. A total of 18 clients, mostly farmers and vegetable growers, attended the meeting and shared opinions and experiences in organizing as a group. As a result of the meeting, the clients supported the idea of establishing a business group.
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