Why Brac's Business Model is so successful?
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Brac’s Company Overview
BRAC is a leading international development organization rooted in Bangladesh, renowned for its multifaceted approach to poverty alleviation and empowering marginalized communities globally. Founded by Sir Fazle Hasan Abed in 1972 in the aftermath of Bangladesh’s independence, BRAC has grown into the largest non-governmental development organization in terms of workforce and reach. The organization operates in all 64 districts of Bangladesh and extends its impact across 13 countries in Asia, Africa, and the Americas. With a mission to empower people and communities in situations of poverty, illiteracy, disease, and social injustice, BRAC pursues a holistic development strategy that integrates education, healthcare, social and economic development, and disaster resilience.
BRAC employs a distinctive business model that emphasizes sustainable development through social enterprises, microfinance, and community empowerment. The organization integrates its various development programs with profitable enterprises to create a synergy that benefits both the social and economic fabric of communities. For instance, BRAC’s microfinance initiatives provide financial services to the underserved, while its education programs focus on delivering quality primary education in impoverished regions. This model of combining development projects with enterprise activities allows BRAC to reinvest profits into expanding its programs and enhancing their impact, thereby promoting long-term community stability and growth.
The revenue model of BRAC is both diverse and robust, designed to ensure accountability and sustainability. BRAC generates revenue through multiple streams, including its social enterprises, microfinance programs, and donor funding from international agencies, governments, and private foundations. The organization’s social enterprises, such as BRAC Dairy, BRAC Seed and Agro, and Aarong, a retail chain selling handicrafts and textiles, generate substantial income, which is reinvested into BRAC's developmental initiatives. Additionally, the microfinance program, through which BRAC extends small loans to entrepreneurs, also contributes a significant portion of the revenue. This diversified approach not only sustains BRAC's extensive operations but also supports its mission to bring about enduring social change.
Headquater: Dhaka, Bangladesh, India
Foundations date: 1972
Company Type: Nonprofit
Sector: Financials
Category: Non-profit
Digital Maturity: Digirati
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Brac’s Business Model Canvas
- Government agencies
- Non-governmental organizations (NGOs)
- International development organizations
- Local communities
- Financial institutions
- Educational institutions
- Healthcare providers
- Technology partners
- Suppliers and vendors
- Research institutes
- Media partners
- Corporate sponsors
- Community Development Programs
- Microfinance Services
- Health Services
- Education Programs
- Agricultural Support
- Social Enterprise Development
- Research and Innovation
- Capacity Building and Training
- Policy Advocacy and Implementation
- Disaster Relief and Resilience Programs
- Financial Resources
- Human Resources (Trained Staff and Volunteers)
- Technological Infrastructure
- Physical Resources (Offices, Equipment)
- Intellectual Property (Methodologies, Programs)
- Strategic Partnerships
- Brand Reputation
- Data and Research Resources
- Innovative education programs for marginalized communities
- Empowering women through microfinance loans
- Sustainable agricultural solutions for small-scale farmers
- Comprehensive health care services in underserved regions
- Cutting-edge disaster relief and management
- Holistic development programs for adolescents
- Vocational training for skill development
- Affordable sanitary products for women
- Renewable energy solutions for rural areas
- Evidence-based policy and research for development initiatives
- High-quality early childhood development programs
- Support for social entrepreneurs and small businesses
- Scalable models for poverty alleviation
- Inclusive financial services and digital inclusion
- Water, sanitation, and hygiene (WASH) programs
- Personal assistance
- Dedicated customer service team
- Online chat support
- Community engagement programs
- Regular feedback surveys
- Loyalty programs
- Social media interaction
- Member advisory panels
- Training and workshops
- Volunteer opportunities
- Low-income families
- Rural communities
- Urban slum dwellers
- Women entrepreneurs
- Smallholder farmers
- Mobile health service users
- Education seekers
- Microfinancing clients
- Social business investors
- Non-governmental organizations partners
- Website
- Social Media
- Email Marketing
- Partnerships
- Community Outreach
- Events and Seminars
- Salaries and Wages
- Office Rent and Utilities
- Marketing and Advertising
- Technology and IT Infrastructure
- Program Implementation Costs
- Supplies and Materials
- Training and Development
- Travel and Transportation
- Legal and Compliance
- Insurance and Risk Management
- Operational Expenses
- Consultancy Fees
- Administrative Costs
- Depreciation and Amortization
- Donations
- Grants
- Service Fees
- Product Sales
- Microfinance Interest
- Training Fees
- Fundraising Events
- Consultancy Fees
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Try it freeBrac’s Revenue Model
Brac makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:
- Microfranchising
- Nonprofit organization
- Cross-subsidiary
- Affiliation
- Social stakeholder
- Power on
- Donation-based
- Embedded social enterprises
- Microfinance
- Target the poor
- Ecosystem
- Agribusiness
- Alternative currencies and banking
- Archetypes of business model design
- Corporate innovation
- Digital transformation
- Healthcare
- Blended value
Brac’s Case Study
Brac's CASE STUDY
Since its inception in 1972, BRAC has evolved from a small relief operation into the world's largest non-governmental development organization, driven by an unwavering commitment to combating poverty and empowering marginalized communities. Today, BRAC’s footprint extends well beyond its home country of Bangladesh, impacting millions of lives across 13 countries in Asia, Africa, and the Americas. We at BRAC have meticulously crafted a multifaceted and sustainable development strategy that resonates deeply with the needs and aspirations of the underserved. The story of BRAC, infused with innovation, compassion, and entrepreneurial zeal, continues to be an exemplar of effective development work globally. Here, we dive into some vivid case studies that paint a comprehensive picture of BRAC’s expansive reach and impact.Microfinance: Empowering Millions One Small Loan at a Time
One of BRAC’s hallmark initiatives is its microfinance program, which has provided financial services to more than seven million people in Bangladesh alone. A story that epitomizes the transformative power of our microfinance efforts is that of Ayesha Begum, a widow and mother of two from a rural Bangladeshi village. Struggling to make ends meet, Ayesha sought a BRAC microloan to start a small poultry business. With her initial loan of Tk. 15,000 (approximately USD 180), Ayesha purchased chickens, built a coop, and began her journey as an entrepreneur. Within a year, her income had doubled, allowing her to pay for her children’s education and improve her family's living conditions. According to the World Bank, microfinance services have lifted over 10 million people out of poverty globally, and BRAC has been at the forefront of this movement (World Bank, 2022). The unique aspect of BRAC’s microfinance program lies in its holistic approach. Not only do we provide loans, but we also offer financial literacy training, mentorship, and support programs. This integrated model ensures that recipients like Ayesha have the tools and knowledge to succeed and sustain their businesses. Our repayment rate is an impressive 98 percent, underscoring the program's efficacy and the borrowers’ commitment (BRAC, 2022).Education for Empowerment: Bridging the Gap
BRAC’s commitment to education is intrinsic to our mission of empowerment. Recognizing the pivotal role of education in breaking the cycle of poverty, we have developed extensive programs aimed at reaching the most marginalized children. BRAC operates the largest secular private education system in the world, with over 700,000 students enrolled in our schools in Bangladesh. Take the story of Rina Akter, who, before joining a BRAC school, worked as a child laborer in Dhaka’s garment district. Today, Rina is a top student and aspires to be a doctor, an aspiration nurtured by BRAC’s comprehensive educational programs. Our non-traditional schooling system—which includes community-based schools, after-school programs, and mobile classrooms—ensures that children in remote and underserved areas have access to quality education. According to a 2021 study by Harvard University, BRAC students demonstrate 20 percent higher literacy rates compared to national averages, a testament to the program’s quality and effectiveness (Harvard, 2021). The ability to integrate educational opportunities with life skills and vocational training further sets our programs apart, preparing students not just academically, but for real-world challenges.Aarong: Crafting Opportunities, Empowering Women
Our social enterprise Aarong is a shining example of how we blend development and enterprise. Established in 1978, Aarong has grown into one of Bangladesh's leading fashion and lifestyle brands while empowering thousands of artisans, primarily women, across the country. Sajida Begum, a talented artisan from Sirajganj, began her journey with Aarong in 2008. She initially earned less than Tk. 2,000 (approximately USD 24) per month. After joining Aarong, where her products are sold in both national and international markets, her earnings have quadrupled, providing a stable income for her family. Sajida's story mirrors the success of over 65,000 rural artisans whose lives have been transformed through employment with Aarong (BRAC, 2022). Aarong’s success isn’t only in its business model; it’s in how it was designed to create sustainable livelihoods. By integrating traditional craftsmanship with contemporary design, Aarong has preserved cultural heritage while opening new market opportunities. The enterprise's revenue, which topped USD 95 million in 2022, is reinvested into BRAC’s social programs, fueling further development work (BRAC Annual Report, 2022).Innovation in Public Health: A Lifeline for Millions
BRAC's healthcare initiatives are another cornerstone of our multi-pronged strategy. We operate the world's largest community health worker program, with over 50,000 community health volunteers delivering essential healthcare services to millions. Consider the example of Leila, a community health volunteer from Cox’s Bazar. Equipped with training in basic healthcare, Leila provides prenatal care, childhood immunizations, and health education to families in her community. Her role became critically important during the COVID-19 pandemic, where she helped disseminate vital health information and facilitate vaccinations. Our community health programs have significantly impacted public health metrics; for instance, BRAC interventions contributed to a 20 percent reduction in maternal and child mortality rates in target areas (WHO, 2021). Paul Farmer, co-founder of Partners In Health and a global health expert, commended BRAC's model, stating, BRAC has turned the idea of healthcare upside down. They have proven that high-impact, cost-effective healthcare can be delivered by training local community members as health workers (Farmer, 2022).Resilience and Innovation in Crisis: Disaster Management
Bangladesh is prone to natural disasters, and BRAC has pioneered innovative approaches to disaster management and resilience. The 2020 floods, which affected millions, saw BRAC in action with timely and effective interventions. Our disaster management programs focus on preparedness, response, and recovery, ensuring communities can weather crises with resilience. Our approach is characterized by integrating local knowledge with scientific research to devise context-specific solutions. A key component of our strategy is building resilient infrastructure, such as elevated homes and flood-resistant crops. This proactive stance has been lauded by experts and has significantly mitigated the impact of disasters on vulnerable communities (UNDP, 2021).Conclusion: A Legacy of Impact and Innovation
BRAC's journey from a small relief organization to a global leader in development is a narrative of unwavering dedication, innovative thinking, and effective execution. From microfinance and education to social enterprises and healthcare, our integrated approach has created sustainable change, reaching over 100 million people worldwide. Our success lies in our ability to blend developmental programs with profitable enterprises, ensuring sustainability and continuous impact. As we look to the future, we remain committed to our mission of empowering people and communities, leveraging innovation and collaboration to tackle the world’s most pressing challenges. The BRAC model, as Sir Fazle Hasan Abed envisioned, epitomizes how a holistic approach to development—one that integrates economic activity with social progress—can drive enduring and transformative change. Our journey continues to inspire and pave the way for a more equitable and empowered world.If you enjoyed this content, you’re in for a treat! Dive into our extensive repository of business model examples, where we’ve dissected and analyzed thousands of business strategies from top tech companies and innovative startups. Don’t miss out!