The “Women Entrepreneurs Finance Code” program was launched on April 16, 2025, at the State Palace of Mongolia under the leadership of Amarbayasgalan Dashzegve, the Chairman of Mongolia’s Parliament. This initiative aims to improve access to financial services for women entrepreneurs in Mongolia, helping them grow their businesses and contribute to the country’s economic development. Mongolia is among the first countries in the Central Asian region to join this global program, which is currently being implemented in over 30 countries worldwide.
Speaker of the Parliament, Amarbayasgalan opened the ceremony by stating that women-owned businesses and women’s small businesses are becoming more common in business practices and the legal system, and that the international community is stepping up efforts to establish a legal framework that ensures gender equality. The Speaker remarked, “Mongolia adopted the Law on Ensuring Gender Equality in 2011 and has been paying attention to ensuring gender equality in every sector. A study conducted by the Institute of Market Training and Research of the University of Finance and Economics shows that the main challenges for women entrepreneurs include lack of collateral, weak financial education, limited business networks and markets, gender stereotypes, and lack of a favorable legal environment.” Speaker Amarbayasgalan expressed hope that the projects and programs, including “Women in Business” and “Women Entrepreneurs Finance Code,” being implemented by the European Bank for Reconstruction and Development will contribute to overcoming these difficulties.
As of last year, MNT 3.3 billion in loans were made to women, accounting for 42.1 percent of all loans made to small and medium-sized businesses, according to Lkhagvasuren Byadran, president of the Bank of Mongolia. At a weighted average interest rate of 17.1 percent, each borrower got an average of MNT 66.4 million in loans. It indicates that compared to male borrowers, the loan amount was twice as small and the interest rate was 0.8 percentage points higher. As a result, national policy coordination is required to expand women’s financial access.
The Bank of Mongolia and the European Bank for Reconstruction and Development signed the Memorandum of Understanding on Joining the “Women Entrepreneurs Finance Code” Program in September last year.
The Bank of Mongolia will act as the national coordinator of the program. We are working on formulating a roadmap and plans to coordinate the program with other policies and strategies. Moreover, we are collecting and analyzing data on women entrepreneurs and focusing on increasing financial access for women entrepreneurs.
In addition to lowering social inequality, encouraging women’s entrepreneurship and expanding financial access is a crucial strategic step towards economic growth and sustainable development, according to T. Jambaajamts, chairman of the Financial Regulatory Commission. Giving women equitable access to financial services will empower them to start their own companies, generate employment, and use their earnings to support their families’ and their children’s health and education, all of which are critical components of a more stable economy. He underlined that the steady execution of measures and policies to promote gender equality and expand financial access in Mongolia not only contributes to the expansion of the financial industry but also to the overall development and advancement of the nation.
Member of Parliament A. Ariunzaya agreed with the view that women’s entrepreneurship not only helps women and their families financially but also benefits employees, their families, the community, and the national economy. However, women face challenges in expanding their businesses because they often lack collateral, as property is usually registered in their husband’s name, and they have limited communication with others in the same industry. These issues should be addressed through supportive policies, encouraging more women to start their own businesses.
According to last year’s Global Entrepreneurship Monitor report, 10 percent of women worldwide started new businesses, which is twice as many as 20 years ago. In Mongolia, about 60 percent of small and medium-sized enterprise owners are women, and 87 percent of these are micro-enterprises with fewer than ten employees. This shows that women are actively participating in business, but they still need better access to financing and markets to grow their activities, as highlighted by event participants.
O. Otgonjargal, the founder of Sanjain Khishig LLC, shared her experience of starting her own business. She began 8 years ago by borrowing 5 million MNT from a friend as initial capital and later grew her business by taking bank loans. When she first applied for a loan, the bank said her documents were not enough. Since then, she has taken out loans more than 20 times, with her most recent loan approved in just five days. Otgonjargal believes that the best support for women entrepreneurs would be different types of loans tailored to their business sectors, with long terms and low interest rates.
