Social Enterprise Models and SPO Financial Sustainability: The Case of BRAC

Abstract

The purpose of this paper is to assess whether social enterprise practices can contribute to solving financial sustainability problems for social purpose organizations. Using the illustrative case-study of the Bangladesh Rural Advancement Committee (BRAC), and based on a financial ratio analysis for the years of 2005 and 2009, this paper concludes that a revenue structure based on social enterprise initiatives, in opposition to donor grants, generates a more financially sustainable organization.

Key Words:

• Social enterprise
• social purpose financial sustainability
• BRAC

Notes

Tan et al. (2005) explore this issue, noting that the various approaches correspond to whether we think about enterprise in, by, for or involving society.

Afghanistan, Bangladesh, Liberia, Pakistan, Sierra Leone, Southern Sudan, Sri Lanka, Tanzania, Uganda.

Fazle Hasan Abed is the founder of BRAC.

This is actually the classification adopted in the BRAC annual financial reports that we will work on later in this paper.

Total equity is understood here as the difference between total assets and total liabilities.