Formalization of the Informal Economy Project

The ILO Formalize Your Business training programme launch in Mongolia

MONGOLIA (ILO News) – On 4 December 2024, the International Labour Organization (ILO), in collaboration with the Mongolian Employers’ Federation (MONEF), launched the ILO Formalize Your Business (FYB) training programme for entrepreneurs in Mongolia.

In Mongolia, it is estimated that 42,4 per cent of the labour force is working informally and have many small enterprises. Most face challenges such as inadequate social protection, decent working conditions, better productivity and so on. As part of its efforts to address these issues, the MONEF adapted the ILO FYB training programme to the Mongolian context and organized Training of Trainers under the ILO-Formalization of The Informal Economy Project from 4 to 17 December 2024.

Speaking at the event opening, Country Director for China and Mongolia, Chang-Hee Lee emphasized the importance of the FYB training programme and shared his expectations from the trainers to organize practical training for many entrepreneurs nationwide to tackle informality.

Chang-Hee Lee during his opening remarks

“Due to the lack of information, business owners are concerned only with the cost of accessing social security and having decent working conditions while not considering the benefits and advantages to their business and employees” said Chang-Hee Lee.

In his opening remarks, Director General of Employment Policy Department, Ministry of Family, Labour and Social Protection, Ryenchindorj welcomed the importance of the FYB programme in addressing informality and expressed to provide all possible support in implementing this training programme at the national level.

Amongst the speakers, Vice President of MONEF, Nanjidsambuu noted that the adaptation of this training programme is the collective result of close collaboration between the ILO, together with the ILO Enterprise Formalization Team in Geneva, and MONEF, specifically the General Authority for State Registration, the General Authority of Social Insurance, the General Department of Taxation.

A total of 28 participants were involved in the three-day training. At the end of the training, participants were divided into six groups, each conducting practical training. The objective of the practical training was to reinforce what the participants had learned during the three-day training. On 17 December 2024, each group presented how they organized TOEs, how many entrepreneurs attended, what challenges they faced and so on.

Training participants during the group work

Training of Trainers:

December 4-6: A three-day training session. 28 participants from MONEF and NGOs
December 9-16: Practical training sessions for entrepreneurs were held between 11 and 16 December 2024, with a total of 105 entrepreneurs enrolled. Their business activities cover various sectors, including sewing, food production, boot repair, public shower services, crafts, dairy processing, and so on. Among the participants, 24 per cent are business owners with disabilities.
December 17: A one-day workshop

28 participants received a certificate of participation.