There is a common perception that in rural areas there are no jobs, no markets to sell products and services and no possibilities for business development. However, the business history of one ordinary young man in the Gobi shows otherwise and demonstrates there are opportunities to develop and grow if one has the desire.
E.Sugir, graduated from the Umnugobi Vocational Training school specialising in leather craft. He started his business without the concern of how to sell his products as he had grand ambitions to create and develop. He also had the market cornered, there were no other manufacturers doing same thing in his native village or in neighbouring villages.
Initially, he started by making wooden carvings, leather products and drawings on felt. Later on, he expanded into other Mongolian traditional products; leather boots, pouches for snuff bottles, belts and pouches for bowls. One of his products, a combination leather pouch for both bowls and snuff bottles is very unique. Previously, pouches for traditional items were made from cloth. A pouch is always carried around, so the cloth is quickly worn through, it doesn’t last long. Sugir’s leather pouch is very durable, it sells well and is in great demand.
Local herders and residents like to buy warm, durable, pure leather boots made by Sugir. He decorates the boots using traditional Mongolian designs and styles. Another advantage to his business, Sugir experiences no shortage of raw materials. Mongolia is a land of livestock animals so hide and felt are in good supply.
All businesses aim to develop and expand further. However, in rural areas, development and expansion of businesses is often held back by lack of skills, knowledge, funding. Starting out, Sugir had his fair share of challenges. Fortunately for Sugir, he became involved in the Oyu Tolgoi 'Local business economic support programme' and participated in start-up business, marketing and job safety training run by Oyu Tolgoi.
In addition to completing the training, Sugir developed a business plan and obtained a bank loan. Using the loan, he purchased an industrial sewing machine, a steam iron, work premises and raw materials. He said “I learned a lot from being involved in the Oyu Tolgoi 'Local business economic development programme'. I gained the necessary knowledge and skills and since then I have expanded my business. If the programme continues, I am planning to participate in 'technological training' with a view to diversifying my product line”.
Sugir manufactures products to order for local residents and also sells his products through the Oyu Tolgoi site shop. Oyu Tolgoi supports the development of local small and medium enterprises and is working to reduce dependence on one buyer, encouraging independence for growing businesses.
Local youth are very interested in starting businesses and in local manufacturing, but they need support. The most important thing is to have the initiative to get the help needed to get started yourself, instead of waiting for others to support you. The short business history of Sugir, resident of the Khanbogd soum of Umnugobi is a great example and inspiration for people wanting to start their own business.
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