Chapter 1: Introduction

1.1 Introduction:
In today's ever-changing global economy, many companies are adopting a more socially responsible and
sustainable approach to their operations. Aarong, a well-known brand from Bangladesh, is a shining
example of this evolving corporate landscape. Founded in 1978 as a project of BRAC (formerly
Bangladesh Rural Advancement Committee), one of the world's largest non-governmental development
organisations, Aarong has successfully combined traditional craftsmanship with contemporary market
dynamics. It has emerged as a pioneer in promoting the economic and social well-being of artisans while
meeting the demands of a discerning clientele.

1.2 Objective of the Study:

The main objective of this term paper is to conduct a comprehensive analysis of Aarong. The study
will focus on Aarong's distinctive characteristics, mission, and influence as a sustainable social
enterprise. We aim to achieve the following specific objectives:

1. To explore the history and vision of Aarong, including its founding principles and evolution. To
analyse Aarong's unique business model, emphasising its impact on rural artisans and local
communities.

2. To assess the extent and scalability of Aarong's sustainable practices in Bangladesh and
beyond. To explore the challenges and opportunities that Aarong faces in its journey towards
sustainable social entrepreneurship.

3. To evaluate Aarong's contribution to promoting Bangladesh's cultural heritage and traditional

craftsmanship internationally.

1.3 Scope of the Study:

This research covers various aspects of Aarong and its impact as a sustainable social enterprise.

1. Aarong's historical development, mission, and values will be examined.

2. Aarong's business model will be analysed, including its supply chain, marketing strategies, and
product offerings.

3. The socio-economic impact of Aarong on local artisans, communities, and the broader economy
will be explored.
 4. The efforts made by the company to preserve and promote traditional Bangladeshi
craftsmanship will be assessed.

5. A comparative analysis will be conducted with other similar enterprises, both locally and globally,
to identify best practices and areas for improvement.

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1.4 Limitations of the Study:

While this term paper aims to provide a comprehensive overview of Aarong as a sustainable social
enterprise, it is essential to acknowledge certain limitations. These include:

1. Availability of Data: The study's accuracy depends on the availability of up-to-date information
on Aarong, which may change over time.

2. Access to Internal Information: Aarong's proprietary and internal data may be limited, impacting
analysis depth.

3. Generalization: It may not be possible to generalise the findings beyond the context of Aarong
and specific cultural, economic, and social conditions in Bangladesh.

1.5 Methodology:
To accomplish the study's goals, we will use a mixed-method approach that blends qualitative and
quantitative research methods. We will collect data by reviewing secondary sources like academic papers,
articles, company reports, and government publications. In addition, we will conduct interviews and
surveys with key stakeholders within the Aarong ecosystem, including artisans, management, and
customers, to gain a deeper understanding of the subject.

Chapter 2: Literature Review

The term paper's literature review will provide a comprehensive analysis of academic and industry
publications, establishing the framework. Key areas of focus include:
 1. Social Entrepreneurship: We will explore social entrepreneurship and its importance for
modern businesses. This section will explain how companies like Aarong have integrated
social and economic goals into their mission and operations.

2. Sustainable Business Models: An analysis of literature on sustainable business models reveals

the strategies social enterprises use to balance profits and social impact, which helps
contextualise Aarong's approach.

3. Economic and Social Impact of Social Enterprises: We will review studies examining the
economic and social impact of social enterprises, highlighting their contributions to poverty
alleviation, community development, and sustainable livelihoods.

4. Cultural Preservation and Promotion: Aarong aims to preserve and promote traditional
Bangladeshi craftsmanship. The literature review will explore similar global organisations.

5. Challenges and Opportunities: Analyzing the challenges and opportunities faced by social
enterprises in Bangladesh and beyond provides a comprehensive view of the industry's
dynamics.

By conducting a literature review, this term paper contextualises Aarong's role as a sustainable social
enterprise within the broader framework of social entrepreneurship and sustainable business practices.

Chapter 3: Company Profile

Aarong, which means "village fair" in Bengali, is the most popular retail chain in Bangladesh, offering
fashion and lifestyle products. Established in 1978, the brand was created to empower rural artisans to
overcome poverty. Aarong currently has 22 retail stores throughout the country and offers over 100
innovative product lines that range from diamond jewelry, silk and cotton fabrics, and brass and leather
merchandise to clay pots.

As an enterprise of BRAC (Building Resources Across the Community), Aarong supports 65,000 artisans
and is a CSR-based organisation that combines traditional and contemporary designs to appeal to
consumers locally and internationally. With a robust supply chain and distribution network, Aarong has
become a well-known brand in Bangladesh. Its fair-trade networks and online shops continue to expand
the market for Bangladeshi crafts worldwide, creating more opportunities for artisans to protect their
age-old art and livelihoods.

Currently, Aarong has more than 100 product lines and over 22 retail outlets across the country.
Chapter 4: Data Analysis
For this term paper, we will be systematically analysing data by examining and interpreting both
quantitative and qualitative data collected through various research methods such as interviews, surveys,
and secondary sources. The data analysis process will include essential components such as:

1. Quantitative Analysis: In this analysis section, we will perform a statistical evaluation of

numerical data to assess key performance indicators (KPIs) related to Aarong's financial
performance, customer satisfaction, and artisan income. We may use various statistical tools,
such as regression analysis, correlation, and financial ratio analysis, to identify patterns and
trends.

2. Qualitative Analysis: We will analyse the qualitative data collected from interviews, open-ended
survey responses, and content analysis of documents using thematic coding and content analysis
techniques. This will help us to identify any recurring patterns and themes related to Aarong's
social and economic impact, as well as any challenges and opportunities.

3. Comparative Analysis: Data gathered from Aarong will be thoroughly compared and analysed
against other similar organisations, both within Bangladesh and globally. This process of
comparative analysis will help identify Aarong's strengths, as well as areas where it faces
challenges in its pursuit of becoming a sustainable social enterprise.

4. Case Studies: Individual stories of artisans, customers, and Aarong management will showcase
how the company preserves traditional crafts and impacts lives.

5. Visualization: Data will be presented visually through graphs, charts, and tables to aid the
reader's comprehension of the findings.

The section dedicated to data analysis will be a vital component in providing a thorough evaluation of
Aarong's performance and impact as a sustainable social enterprise, supported by both quantitative and
qualitative evidence. The knowledge gained from this evaluation will be combined with the literature
review and other sections of the term paper to draw significant conclusions and offer informed
recommendations.

Chapter 5: Conclusion and Recommendation

5.5 Conclusion
The study of Aarong as a sustainable social enterprise has demonstrated the significant impact that such
an organisation can have on both the economic and social aspects of a community. Aarong's
commitment to promoting traditional craftsmanship, empowering artisans, and fostering sustainable
practices exemplifies the potential for businesses to be powerful forces for positive change. Through this
study, we have come to appreciate the importance of Aarong's multifaceted approach to sustainability,
which not only generates economic opportunities for local artisans but also nurtures cultural heritage
and preserves the environment.

Aarong is an excellent example of how businesses can go beyond profit-driven models and prioritise the
well-being of the communities in which they operate. Its holistic commitment to sustainability, ethical
practices, and community development is not only inspiring but also serves as a beacon of hope for
other enterprises looking to make a meaningful difference in the world.

As we reflect on Aarong's journey, it becomes apparent that the principles and practices of sustainable
social enterprise offer a promising path towards a more equitable and harmonious future. Aarong's story
emphasises that business can be a force for good, and by following in its footsteps, other enterprises can
also contribute to improving society and the environment. In this era of increasing social and
environmental consciousness, Aarong stands as a shining example of the transformative potential of
sustainable social enterprises.

5.6 Recommendation
Aarong's success can be attributed to its ability to establish collaborative networks with local artisans,
NGOs, government agencies, and stakeholders. For other sustainable social enterprises, it is crucial to
prioritise and actively seek out strategic partnerships. Such collaborations facilitate the sharing of
knowledge, resources, and best practices, leading to a more extensive reach and a more significant
impact. Strategic partnerships can also help these enterprises expand their network, access new markets,
and mobilise support for social and environmental causes.

By actively seeking partnerships, sustainable social enterprises can enhance their operational efficiency
while increasing their influence and effectiveness in achieving their sustainability goals. Aarong's
approach of working closely with local communities and forging alliances can be a blueprint for other
enterprises seeking to create a sustainable impact on a broader scale.

Incorporating collaborative networks into the business model, as demonstrated by Aarong, can be a
powerful strategy to strengthen the sustainability and social impact of enterprises, ultimately
contributing to a more equitable and prosperous society.

Reference:
1. Data analysis is taken from ACADEMIA (website)

2. Other information has been taken from a report named Strategic Business Analysis of Aarong,
uploaded on the ACADEMIA website.