New Financing Solution For Mongolian Smes Using Venture Capital Investment

Small and medium enterprises(SMEs) are performing crucial and important role in counties’ economy which have being proved by developed countries’ cases. My country has small population and small market, most of consumer goods are imported. Many researchers suppose that SMEs is definitely main key and essential factor to develop countries like Mongolia. In several years, Mining is becoming dominant factor of Mongolian economy and it is bringing opportunity to Mongolia economy to develop however it even brings risks. Especially for SMEs it is big chance to develop and get finance.In case of countries where SME is well developed, these countries first endeavor and produce solely based on the opportunity and advantage, gradually gate crash world market and compete successfully using these solely accumulated experiences on world market. As a result not only SMEs could be well developed but also these countries’ economy could developed, stronger and stability. For all these realization, there are many of SMEs which have to be financed. Most finance condition of Mongolian SMEs are poor. In recent years, however government, international organizations, financial organizations and other related organizations finance SMEs, but also demand of SMEs financing have been higher. This overdemand shows us that financial intermediaries, tools and financing way and structure for SMEs haven’t developed efficiently.Consequently, it is necessary to state and to analysis the issues in government policy on SMEs and during its implementation, then find the favorable and inexpensive other way to finance SMEs. Therefore i do think that venture capital is one considerable financing way for SMEs of Mongolia as successful and efficient case of venture capital in other developed countries.