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Case Study of FUNDES – Costa Rica

Urs Jäger (INCAE Business School) Silke Bucher (Consultant) Guillermo Cardoza (INCAE Business School)

Abstract: FUNDES is a foundation that follows the mission to promote the competitive development of micro, small and medium sized enterprises in Latin America. Throughout many years, FUNDES could almost completely focus its activities on fulfilling this mission because its finances were largely guaranteed by the funding of Fundación Avina. When Fundación Avina announced that it would stop its social investments into FUNDES, the organization had to look for alternative funding sources. Its managers decided that the only way to further fulfill a social mission and be financially self-sustainable was to transform FUNDES into a social business. They intended to use the concept of “Creating Shared Value” to define their social business model.