The Compass of Entrepreneurship in Cuba

Starting a business in today’s Cuba is not just an economic act. It is an act of profound resilience and courage. The path to founding a Micro, Small, or Medium-Sized Enterprise (MSME) or any self-employment initiative (TCP) is fraught with unique challenges. That only Cuban determination and intelligence can overcome. But, precisely in this adverse situation lies its vital importance.

The Adverse Context: Navigating Without a Rudder

Cuban entrepreneurs face a host of difficulties:

Economic erosion: The main barrier is runaway inflation. The cost of inputs and raw materials skyrockets due to the devaluation of the CUP and the instability of the informal exchange rate. Entrepreneurs must buy in an unstable currency market and sell in a peso market with low purchasing power. This forces high prices, limiting the customer base.

The bureaucratic and legal labyrinth: Despite the existence of MSMEs, the regulatory framework remains complex. The lack of an efficient wholesale market forces entrepreneurs. To resort to imports and informal networks, increasing costs and time. Managing taxes, licenses, and the scarcity of efficient banking services complicate daily operations.

The brain drain: The migration phenomenon not only reduces customers but also skilled labor. Finding committed personnel with the necessary training becomes a constant challenge. As many talented young people seek opportunities abroad.

Importance and hidden benefits

Even with everything against them, the rise of entrepreneurship is a lifeline for the Cuban economy today:

  • Genuine job creation: MSMEs and private sector contractors not only create Jobs. But also offer salaries higher than those in the state sector, directly linked to productivity. This dignifies the effort and provides a respite for many families.
  • Diversification and Supply: In a country marked by shortages, entrepreneurship is a source of diversification for the product and service offering. From specialized cuisine to technological and construction solutions.
  • Driver of Innovation: Necessity sharpens ingenuity. Cuban entrepreneurs are masters of the circular economy and the “search” for solutions. Finding creative alternatives to the shortage of inputs.

Advice for the Cuban Entrepreneur: Faith and Strategy

For those launching into entrepreneurship today, the recipe is a mix of cold-blooded strategy and unwavering faith:

  1. Extreme Focus (The Niche is the Lighthouse): Don’t try to solve all of the country’s problems. Focus on a very specific market niche (for example, “gluten-free artisanal bakery” or “electric bicycle repair service”). In times of scarcity, specialization is survival.
  2. Digitize your business: Make the most of digital platforms (Transfermovil, Enzona) and social media to promote and above all, manage your finances. Short-term planning is vital given the volatility of the CUP.
  3. Legality as a shield: Although it may be cumbersome, working within the legal framework, with an MSME or TCP license. It offers protection and the possibility of accessing imports/exports, even through intermediaries.
  4. Resilience and networks: Accept that failures are part of the process and actively seek out connections. Networking with other entrepreneurs (suppliers, colleagues) is the main tool for sharing information, obtaining resources, and maintaining motivation.

The Cuban context is undoubtedly a storm. But history has taught us that the greatest captains are forged in rough seas. The success of an entrepreneurial venture is not only measured by profits. But also by its ability to stay afloat, generate value, and demonstrate that, despite everything, creativity and personal effort remain the most powerful force driving the nation’s development.

By: Alvaro Raúl Suárez Leyva

Radio Angulo
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