D.Damba-Ochir: Large companies should support smaller businesses
Our correspondent spoke with MP D.Damba-Ochir about the conference for small- and medium-sized manufacturers that was recently held.
Q: The recent conference discussed the challenges facing small- and medium-sized manufacturers. The Government has implemented many policies to support these businesses. Have the policies worked?
A: Small- and medium-sized manufacturers have a significant role in the country’s development. Therefore, the Government must support them. The state provided loans in 2009, 2010, and 2011, but the amount was not sufficient. That is why large companies should also support small- and medium-sized manufacturers, which can offer a stable supply of products to larger manufacturers. In this case, many citizens would have stable jobs. The Government plans to involve small- and medium-sized manufacturers in many projects, including the Tavantolgoi and Oyutolgoi projects. Also, around the Erdenet Factory, Darkhan Ferrous Metal Factory, and Khutul Cement and Lime Factory smaller businesses could be developed.
Q: But our smaller manufacturers have not had the capacity to be suppliers. What about that?
A: I disagree with you because our manufacturers’ capacity has been improved. They have the desire to update their technologies. Small- and medium-sized businesses in Erdenet city recently met and they raised many issues. They suggested contracts with Erdenet Factory in sums less than MNT 30 million could be negotiated with small- and medium-sized manufacturers.
Q: Small- and medium-sized companies always say the state support they receive is insufficient, and they suggest establishing a Loan Guarantee Fund. Has Parliament discussed the issue?
A: I think establishing the fund is the right thing to do. Parliament should address the issue as soon as possible, and it could be a big help to small- and medium-sized companies. Many citizens can not start businesses because they lack sufficient capital.
Q: Soum and aimag governors decide who gets the loans now. How do they decide who gets a loan?
A: Yes, the Government asks governors to determine the granting of loans to small- and medium-sized businesses in local settlements. Some business owners said the loans are not big enough. Also, commercial banks have increased their interest rates due to Mongol Bank strengthening its monetary policy. The relevant ministries and the Government should pay attention to the issues of rising interest rates and raw material prices.
Q: The recent conference discussed the challenges facing small- and medium-sized manufacturers. The Government has implemented many policies to support these businesses. Have the policies worked?
A: Small- and medium-sized manufacturers have a significant role in the country’s development. Therefore, the Government must support them. The state provided loans in 2009, 2010, and 2011, but the amount was not sufficient. That is why large companies should also support small- and medium-sized manufacturers, which can offer a stable supply of products to larger manufacturers. In this case, many citizens would have stable jobs. The Government plans to involve small- and medium-sized manufacturers in many projects, including the Tavantolgoi and Oyutolgoi projects. Also, around the Erdenet Factory, Darkhan Ferrous Metal Factory, and Khutul Cement and Lime Factory smaller businesses could be developed.
Q: But our smaller manufacturers have not had the capacity to be suppliers. What about that?
A: I disagree with you because our manufacturers’ capacity has been improved. They have the desire to update their technologies. Small- and medium-sized businesses in Erdenet city recently met and they raised many issues. They suggested contracts with Erdenet Factory in sums less than MNT 30 million could be negotiated with small- and medium-sized manufacturers.
Q: Small- and medium-sized companies always say the state support they receive is insufficient, and they suggest establishing a Loan Guarantee Fund. Has Parliament discussed the issue?
A: I think establishing the fund is the right thing to do. Parliament should address the issue as soon as possible, and it could be a big help to small- and medium-sized companies. Many citizens can not start businesses because they lack sufficient capital.
Q: Soum and aimag governors decide who gets the loans now. How do they decide who gets a loan?
A: Yes, the Government asks governors to determine the granting of loans to small- and medium-sized businesses in local settlements. Some business owners said the loans are not big enough. Also, commercial banks have increased their interest rates due to Mongol Bank strengthening its monetary policy. The relevant ministries and the Government should pay attention to the issues of rising interest rates and raw material prices.
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