This case discusses the development of FUNDES, a Costa Rica based nonprofit, with the mission of promoting the development of micro, small and medium-sized enterprises (MSMEs) in Latin America. Originally a pioneer in the field of economic development work, FUNDES had begun to face fundamental changes. The case illustrates how the organization was able to effectively continue to fulfill its mission despite these unpredictable dynamics by implementing strategic changes based on principles of collective mindfulness. FUNDES continually monitored the impact of its services, viewing early signs of failure in the fulfillment of its mission as indications to adjust its service portfolio. Later, FUNDES successfully changed its funding structure when the donor announced that it would be ceasing investments. Strengthening its emerging focus on projects that included large enterprises, FUNDES reinvented both its service portfolio and its business model, becoming a financially self-sustaining, mission-driven and market-oriented organization.

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Keywords Mindfulness, Nonprofit Management, Financial Strategy, Shared Value, Organizational Change, Latin America
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Series INCAE Top Articles
Journal Journal of Business Research
Bucher, S, Jäger, U, & Cardoza, G. (2016). FUNDES: Becoming a Strategically Mindful Nonprofit. Journal of Business Research, 69(10), 4489–4498. doi:10.1016/j.jbusres.2016.03.014