Small and medium enterprises (SMEs) are commonly recognized as being a catalyst for a strong and prosperous economy. They massively contribute to income generation, employment opportunities, reduction of poverty, and innovation. Whether it be a developed or a developing country, with varying characteristics, SMEs are a fundamental part of an economy. Unfortunately, the majority of SMEs face similar problems hindering sustainable business and growth. Various publications and literature were analyzed and compared, with a focus on the employment contribution of SMEs, the types and characteristics of the job they provide, the most common troubles SMEs deal with, and the basis of controlling in the context of SMEs. This thesis delves into the motivating factors behind the use of controlling tools by SMEs in Mongolia and examines the efficacy of such tools in achieving their intended goals. The thesis involved a series of inquiries with participating SMEs, utilizing a 1-5 rating system to gauge the importance of the reasons for employing controlling methods.