STUDY ON MONGOLIAN GOVERNMENT SUPPORTS IN SMEs

There are 83 thousand enterprises registered in Mongolia as of now, but 50921 of them conduct the business actively. As the statistical news, small and middle enterprises and businesses cover the 38.6% of total national products of our country, 38.2% of sales, 18.9% of official income taxes paid by the enterprises and organizations to the state budget and 21.8% of official trade taxes. 31% of 39 thousand small and middle enterprises conduct their businesses in the food sector, 16% of them engage in agriculture, 1% of them engage in sewing, 5.2% of them engage in skin, 5.1% of them conduct the wood processing business, 2% of them conduct the handcrafts and other percent of them conduct the activities in the mining, energy, electronic, social, cultural and educational and medical sector. According to the World Bank’s Doing business 2015 report, Mongolia currently ranks 72nd out of 189 countries in terms of ease of doing business, 4 places lower than its rank in 2014 and 20 places below its peak position of 52nd in the 2008 World Bank report. This trend indicates a deteriorating and unstable business climate in Mongolia. In the long run, profits are necessary for survival in a competitive business environment, but SME management may adopt grow or not to grow options. long-term profitability derives from the relations between cost and revenue; which is a necessary but not sufficient condition for growth.