Session Name: Access to Knowledge, Network & Markets Case Study: Bangladesh, BRAC Presenter: Asif Saleh Senior Director BRAC and BRAC International

Transcription

1 Session Name: Access to Knowledge, Network & Markets Case Study: Bangladesh, BRAC Presenter: Asif Saleh Senior Director BRAC and BRAC International

2 BRAC in 30 seconds Key Facts and Figures Mission: To empower people and communities in situations of poverty, illiteracy, disease and social injustice. Our interventions aim to achieve large scale, positive changes through economic and social programmes that enable men and women to realise their potential. Founded in: Bangladesh, 1972 Program coverage: 126 million worldwide Countries: 11 Bangladesh budget: US $495million Self Generated: 71% 2

3 Financing Support Social Mission The BRAC Model Social Mission Banking with SME focus BRAC Asset Management Investments Investment Banking & Stock Brokerage Hedge against liquidity crisis Financing Support Health Housing Finance Mobile Banking Internet & Software Retail BRAC Enterprises Livestock & Fisheries Agriculture & Food Green Enterprises Printing & Packaging Marketable goods Social Mission BRAC Development Programs Large-Scale Market Exit Financial Sustainability Health Education Community Empowerment Food & Agriculture Human Rights Gender Equality 3 Finance Social Advocacy Environment

4 The BRAC Advantage Synergy Cross Collaboration Cross Subsidy Continuous Innovation Holistic Support Returns on investments reduce donor dependency 50% of enterprise surplus supports BRAC s Expenditures including development programs Socially Responsible Investments For-Profit Social Enterprises Non-Profit Development Programs 4 Returns on investments provide hedge against future liquidity crisis 50% of enterprise surplus is reinvested and cross-subsidized across the enterprises themselves

5 BENEFICIARIES TYPE OF SUPPORT INTERVENTION Social enterprises (inputs producers) Microfranchising Self-employed & microentrepreneurs support Social enterprises (markets for outputs) - Job opportunities for workers - Inputs for producers - Business model - Access to finance - Training - Capacity building (training) - Access to finance - Other services (legal, health) - Job opportunities for workers - Access to market for producers Workers Selfemployed Producers Producers Producers Workers

6 BRAC Social Enterprises 18 social cause-driven enterprises across the country 6

7 Aarong: BRAC s Flagship Social Enterprise Develops, promotes and sustains crafts in Bangladesh, with 68% market share 65,000 rural artisans employed (80% are women) in 2,000 villages across Bangladesh 25,000 independent cooperative groups and traditional family-based artisans sell their crafts through Aarong Directly benefits around 320,000 people Branding/ Marketing Research and Product Development Innovation Infrastructure & systems Technical Support Aarong Exporting handicrafts Quality Awareness Knowledge Sharing Training 7

8 Targeting the Ultra-Poor : The Ladder out of Extreme Poverty 8

9 Evaluation of the STUP Programme Comparison between participants of the STUP programme and nonparticipants showed that for STUP members 1 - All women participated in the labor force by the end of the programme Participation significantly increased self-employment and decreased wage-labor; many clients engaged in both self-employment and wage labor Large increase in hours worked Hours worked increased for women who did not face any asset constraints before enrolment, indicating that entrepreneurship training had positive impact on self-employment returns Ultra-poor surpassed other poor in terms of occupational choice and welfare Transformative impact: ultra poor households started investing in productive assets outside the programme as well 9 1 Oriana, Bandiera, et al. Can Entrepreneurship Programs Transform the Economic Lives of the Poor? December 2011.

10 BRAC Economic Development Model The Ladder Approach 10

11 BRAC Micro franchisees Army of Caregivers 11

12 Innovations: The Micro franchising 110,000 micro-franchisees worldwide (including 97,000 community health promoters) Active in health, agriculture, livestock, poultry, sanitation, and land measurement Caregivers get training from BRAC on messaging and sell low-cost health products (some BRAC-manufactured) with a mark up Over 2000 Artificial Insemination entrepreneurs are supporting rural farmers and national cattle breed through loans, free training, on-going supervisory support, refresher training and supplies from BRAC Franchising provides important social benefits not provided by existing market, and generates extra income for entrepreneurs 12

13 Current Challenges Scaling up is always the toughest of tasks Not all the borrowers become entrepreneurs Regulatory Challenges of starting Social Enterprises Opportunity cost for the health volunteers are rising and needs increased product portfolio 13

14 Results 126 Millions Lives Touched around the world Arguably one of the most successful and effective NGO model 10 million people having access to finance BRAC Is The Largest Global Anti-Poverty Organization, And It's A Secret Fast Company [BRAC] has probably done more than any single body to upend the traditions of misery and poverty in Bangladesh. It is by most measures the largest, fastest-growing (NGO) in the world and one of the most businesslike - Economist 14

15 Important Lessons Innovation + Scale = Effective Change Small is beautiful, but big is necessary - Sir Fazle Abed One size does not fit all Programmes need to adjust based on context, resources and need One intervention is not always enough Holistic approach to combat poverty from all fronts Continuous innovations Special programmes developed for the ultra poor, whose needs were not being adequately addressed by existing programmes The role of social enterprises and socially responsible investments Paving the path for sustained economic growth 15

16 Advice to Other Countries? Key issues to consider Geographical and political context Social challenges Available resources Other providers Unmet needs 16