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Philanthropy can strengthen communities by investing not only in nonprofit programs, but also in the entrepreneurs, business-support organizations, and local infrastructure that drives economic mobility. How philanthropy supports small business growth is becoming a key question for foundations, nonprofit leaders, and communities seeking stronger local economies. Wafa Dinaro, Executive Director of the New Economy Initiative, explains how philanthropic capital can help entrepreneurs build sustainable businesses, create jobs, and strengthen neighborhoods.
Founded in 2007 with an initial $100 million philanthropic commitment, the New Economy Initiative was designed to help diversify Southeast Michigan’s economy. Nearly two decades later, the collaborative continues to evolve, now supporting approximately 800 to 1,200 businesses each year through nonprofit partners, mentorship, technical assistance, and innovative access to capital.
Wafa explains that funding alone is rarely enough. Entrepreneurs may appear to have a capital problem when the deeper barrier is incomplete financial records, uncertain pricing, weak margins, or limited operational knowledge.
As she tells , “Ideas and entrepreneurs and really innovators are distributed equally, but resources aren’t always distributed equally.”
This conversation with Wafa examines how philanthropy can fund the business-support infrastructure that traditional financing often overlooks. Through its nonprofit network, NEI connects entrepreneurs with mentors who can review their books, strengthen operations, prepare them for financing, and help them scale.
Wafa also introduces the Michigan Small Business Helper, a centralized resource that connects entrepreneurs with regional nonprofits, how-to guides, financial assistance, retail training, and direct support. Behind the platform, NEI can follow the entrepreneur’s journey and identify which combinations of services are producing stronger revenue and business outcomes.
The larger lesson extends well beyond Detroit. Nonprofits and foundations can serve as conveners, intermediaries, data partners, and catalysts through building systems that allow businesses and communities to become more resilient.
“Entrepreneurship is such a core pillar of building neighborhoods, building communities, and rebuilding entire communities.”
Key Takeaways:
Capital becomes more effective when paired with financial, operational, and industry-specific guidance.
Philanthropic intermediaries can pilot programs that conventional funders may consider too uncertain.
Centralized resource platforms reduce confusion and help entrepreneurs find relevant assistance faster.
Tracking an entrepreneur’s journey can reveal which nonprofit partnerships produce measurable business growth.
Flexible funding allows organizations to respond to disruptions such as pandemics, tariffs, and technological change.
Local businesses contribute to job creation, neighborhood vitality, generational wealth, and population retention.
00:00:00 Philanthropy Meets Small Business Development
00:01:14 The Origins of the New Economy Initiative
00:03:33 Expanding Beyond Technology and Innovation
00:05:52 Why Philanthropy Must Be Willing to Experiment
00:08:02 Capital Is Not Always the Real Barrier
00:10:21 Building Trusted Mentorship for Entrepreneurs
00:13:20 Creating the Michigan Small Business Helper
00:15:57 Planning for Change Without Predicting Everything
00:17:50 Supporting 800 to 1,200 Businesses Each Year
00:20:07 Entrepreneurship as Neighborhood Development
00:22:56 Preparing for AI and a More Digital Economy
00:25:49 Maintaining Funder Confidence Through Change
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