Mongolia encounters challenges in its business landscape. Specifically, the overall evaluation of the business environment declined by 8% from 2020 to 2.68, indicating a less-than-ideal situation.

• Research: The Mongolian Business Environment-2023 study, a collaboration between the National University of Mongolia and MNCCI, surveyed 4,606 enterprises. Participants rated the business environment on a scale from 1 (very bad) to 5 (very good).

Taxes = Headaches

The main issues are related to money. When you check out the business environment in different sectors, the tourism sector has the most difficulties, while the information technology sector is doing the best. This evaluation considered 109 smaller aspects grouped into five categories.

• A bit more detail: Management, organization, and efficiency indicators are a bit better than the rest. It looks like entrepreneurs are working on things they can control.
• Here's the big problem: The government system in Mongolia and the money indicators are rated the lowest. Taxes are also causing headaches. Anything that depends on others is tough.

Top Issues

The top three problems for entrepreneurs are high taxes. Specifically, the tax categories and burdens worsened by 19% in the last 2 years. This means the business environment is not great, and various taxes have a big impact. Following that, accessing low-interest credit from international organizations is emerging as a challenge. Lastly, there's an issue with finding the right people to work.

In conclusion, to make things better for businesses, we need friendlier taxes, better laws, and support for certain sectors. The government needs to keep a closer eye on its decisions. This is the only way that the operations of 79.8 thousand enterprises in Mongolia will get better.