The economic essence of small and medium-sized businesses (SMES) and its development in Mongolia

The article presents the results of research of history of development of small and medium business in Mongolia, the current period of development of small and medium business, its economic nature and contribution to the world economy. Mongolia’s transition to a market economy has revived cooperatives and partnerships, which have brought together individual citizens officially registered by the state to start their own businesses. The study is based on the analysis of statistical materials for the last 6 years on such indicators as the share of small and medium-sized business sectors in the gross domestic product, sales revenues and employment. The so-called “Industry 5.0” Internet environment is developing electronic technologies, online purchases and services, which have become the most used worldwide since the beginning of the pandemic in 2019. As a result of the study, the author concludes that it is necessary to carry out four investigative steps to ensure the stable and progressive development of small and medium business of Mongolia.