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The Cuban government has once again exposed its ambivalence towards private entrepreneurs, whom it describes as a “necessary evil” amid the economic crisis facing the island.
According to what was stated to the EFE agency by researcher Ricardo Torres Pérez, author of the report "Private Sector in Cuba: A Release Valve or Engine of Development?", although the openness to self-employment and micro, small, and medium enterprises (mipymes) has allowed for some breathing room, the authorities continue to show distrust and lack of commitment towards this emerging sector.
The data revealed by the Cuba Study Group emphasizes that the official narrative holds that these forms of management are not the ideal model, but rather a necessary resource to keep the economy afloat.
"There is no commitment because the prevailing ideology in the Government views the private sector as a threat," Torres Pérez explained.
Since the legal creation of micro, small, and medium enterprises (mipymes) was authorized in 2021, more than 11,000 private companies have been registered on the island, many of them focused on importing food, basic supplies, and consumer products that the State is unable to provide.
However, its success has raised concerns among sectors of the government who see these actors as a potential source of inequality and a loss of political control.
The official rhetoric is rife with contradictions: while it turns to entrepreneurs to fill the empty shelves, it accuses them of speculation, imposes bureaucratic hurdles, and restricts their imports.
The message is clear: they are allowed to exist only as far as it is convenient for those in power, but never as a free and competitive sector that could displace the state monopoly.
"There is always a new regulation that can be made to bother private businesses in one way or another," Torres insisted.
For ordinary Cubans, micro, small, and medium enterprises (mipymes) are now the only way to access food, medicines, or basic products, even though prices are high due to shortages and the restrictions imposed by the regime itself.
Without these businesses, the country would be even more entrenched in economic paralysis, but the government prefers to target them rather than acknowledge their indispensable role.
The term "necessary evil" not only reveals the regime's contempt for private initiative but also its fear of losing absolute control over the country's economic life.
Cuba needs more freedom and fewer slogans: entrepreneurs capable of generating wealth, not demonized by a system that has shown, for over six decades, its complete inability to lift the people out of poverty.
Frequently Asked Questions About the Private Sector in Cuba and Its Relationship with the Regime
Why does the Cuban regime consider private entrepreneurs a "necessary evil"?
The Cuban regime views private entrepreneurs as a "necessary evil" because, although they allow for some economic breathing room, they are seen as a threat to the state's political and economic control. Despite the reforms that have allowed for the creation of micro, small, and medium-sized enterprises since 2021, the government continues to exhibit distrust towards the private sector and only utilizes it to the extent that it is convenient for keeping the economy afloat.
What is the impact of micro, small, and medium enterprises (mipymes) on the current Cuban economy?
SMEs have had a significant impact on the Cuban economy by meeting the demand for food, medicine, and basic products that the State cannot guarantee. Since their legalization, over 11,000 private enterprises have been registered, many dedicated to importing essential products. However, they face restrictions that limit their capacity to operate and grow.
How does state control affect the development of the private sector in Cuba?
The state control negatively impacts the development of the private sector in Cuba by imposing bureaucratic hurdles and limiting imports, which prevents micro, small, and medium enterprises (mipymes) from operating freely and being competitive. This results in a stifling business environment, where regulations constantly change and the official narrative blames entrepreneurs for speculation, while they are utilized to fill market gaps.
What role do private companies play in Cuban retail?
For the first time since the 1960s, the private sector has surpassed the state sector in retail sales in Cuba, accounting for 55% of the total in 2024. This trend reflects a shift in the economic model where the private sector, despite its limitations, is more flexible and manages to supply the domestic market with a more varied offering, albeit at higher prices.
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