Mongolia is very scarcely populated, yet the majority of the population is centered in the capital city of Ulaanbaatar, and naturally, the majority of the businesses are also based in Ulaanbaatar. This largely factors into the characteristics of business culture, in which essentially everybody knows others, thus credibility and ties become vital to the survival of businesses. It is also advisable to understand the network of relationships which your partners and competitors work within.
Ease-of-doing-business rank: 81st (easy, 2020)
More and more international business practices are being adopted over in recent years as more foreign franchises are opening their business in Mongolia as well as Mongolians who had studied and worked overseas are drawn back home. Most of the meetings with international partners are conducted in English, though some translations are needed when dealing with older Mongolians whom English was not part of their early education, and most of these companies have staff who are able to translate in meetings or hire professional translators.
This creates a strong demand for employees who are more internationally oriented, with internationally recognized qualifications, experience, and language skills, consequently, the competition for said characteristics attract substantial opportunities from companies entering the market such as pension plans and other loyalty incentives.
When it comes to business culture, both western and Asian influences are to be seen rather vividly. In most cases, appearances can be taken seriously, where it favors smart over casual. Punctuality is expected, yet meeting schedules tend to change at the last minute rather too often. Business cards are almost always both in Mongolian and English and they are exchanged at the start of meetings. Once the Mongolians have decided to do business with you, things can then move very quickly.
Much like many of the post-soviet countries, vodka usually plays a part in celebrations such as a successful conclusion of business deals, and you are most likely to be invited to join a toast. New employees or partner in businesses are often encouraged to participate fully, taking a sip is usually acceptable. Most people work 8 hours a day, from 9 am to 6 pm, from Monday to Friday, with an hour for lunch.
