The invention provides compositions and methods useful for treating wounds and enhancing wound healing, particularly for diabetic wound healing. One embodiment provides a method of treating a wound comprising administering to a subject in need thereof a therapeutically effective amount of adipose tissue derived stem cells to treat said wound, wherein the cells are cultured in the absence of serum prior to the administration to said subject. Another embodiment provides a method of treating a wound comprising administering to a subject in need thereof a therapeutically effective amount of adipose tissue derived stem cells to treat said wound, wherein the cells are cultured to induce the formation of at least one self-organizing mesenchymal blastema (SOMB) prior to the administration to said subject, wherein said SOMB is formed by culturing adipose tissue derived stem cells in hanging droplets.