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The unique model under which BRAC enterprises operate has evolved as completely home-grown and in isolation from the international dialogue regarding social enterprises. The 'BRAC model' comprises of a collaborative network of enterprises, development programmes and investments – all of which together serve the comprehensive vision and objective of BRAC, i.e. to empower the poor, alleviate social/environmental imbalance and enhance financial sustainability. The BRAC development programmes are dedicated toward fulfilling BRAC’s social and philanthropic missions and are run as fully-funded, non-surplus ventures. While the BRAC enterprises are mostly incepted as a support mechanism that allows the development programmes to be sustainable, the surplus-generating model of the BRAC enterprises allow for 50 per cent of the surplus from the enterprises to support BRAC’s expenditures, including its development programmes that are often run at very high costs, and the remaining 50 per cent to be re-invested in the enterprises themselves, and as a result reduce the need for external funding. The BRAC Investments unit comprises of financially profitable investments and financial service businesses that are geared toward generating financial returns while adhering to underlying social causes such as low-income housing, microfinance, small enterprise loans, information technology, clean development mechanism (CDM) etc. Dividends from BRAC investments support the financial sustenance of both BRAC enterprises and development programmes by acting as a hedge or safety net against future liquidity crisis. The synergetic effect of this integrated model has contributed significantly in reducing BRAC’s dependency on donors and external funding. Currently, 27 per cent of BRAC’s overall financial needs are fulfilled by various donation/external sources while the remaining 73 per cent is financed internally by BRAC from the surplus of its enterprises and the dividend from its investments. By continuing on this model, BRAC’s goal is to become 100 per cent self-financed in future.
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