BRAC

1. BRAC’s Evolution into a Global Social Enterprise Power Introduction to BRAC BRAC, formerly known as the Bangladesh Rural Advancement Committee, is one of the largest non-governmental development organizations in the world. Founded in 1972 by Sir Fazle Hasan Abed in post-independence Bangladesh, BRAC has since expanded its operations across Asia and Africa, impacting the lives of over 100 million people. While it began as a relief organization, BRAC’s transformation into a self-sustaining social enterprise is widely regarded as a pioneering example of sustainable development. This article explores BRAC's journey from a traditional NGO to a globally recognized social enterprise leader, focusing on its evolution, mission-driven business model, and lasting impact. From Emergency Relief to Sustainable Development In the wake of the Bangladesh Liberation War in 1971, the country faced enormous challenges—poverty, famine, displacement, and destroyed infrastructure. BRAC was established in 1972 to respond to these humanitarian needs. Initially, it focused on basic relief, such as distributing food, providing healthcare, and rebuilding homes. Recognizing the Need for Long-Term Solutions As the initial emergency phase subsided, BRAC quickly identified that temporary relief was not sufficient. To address

2. the root causes of poverty, it expanded into education, healthcare, microfinance, and women’s empowerment. This shift laid the foundation for BRAC’s evolution into a comprehensive development organization. Embracing the Social Enterprise Model Why Social Enterprise? BRAC realized early on that financial sustainability was crucial for maintaining long-term development programs. Donor fatigue and shifting global aid priorities posed risks to program continuity. In response, BRAC adopted a social enterprise model—an approach that applies market-based strategies to achieve social goals. Defining Social Enterprise at BRAC In BRAC’s model, social enterprises are business ventures that serve a dual purpose: generating revenue and creating measurable social impact. The profits from these businesses are into BRAC’s development programs, such as healthcare, education, and women’s rights. Conclusion BRAC’s evolution into a social enterprise has redefined the landscape of international development. By integrating business acumen with grassroots activism, it has created a scalable, resilient, and inclusive model that meets the social and

3. economic needs of millions. Its journey demonstrates that social enterprises can do more than alleviate poverty—they can build self-reliant communities, transform economies, and inspire global change. As the world grapples with rising inequality, climate change, and humanitarian crises, the BRAC model offers a hopeful blueprint for sustainable development anchored in both compassion and pragmatism.