The Cuban government announced the partial or total closure of dozens of micro, small, and medium-sized enterprises (mipymes) as part of the so-called "Government Program to correct distortions and reinvigorate the economy," in a context marked by the general deterioration of productive activity and an increasingly tense relationship between the State and private initiative.
Prime Minister Manuel Marrero reported to the National Assembly that, as part of the process of "restructuring, developing, and managing the socialist state enterprise and other economic actors," checks were conducted on entities that reported losses.
Out of a total of 869 entities reviewed, 87% maintained that status, which led to the partial or total closure of 65 of them.
According to Marrero Cruz, among the identified causes are the lack of adequate accounting systems, the omission of income and expenses, as well as deficiencies in accounting.
These irregularities were used as the basis for the closure decisions, which directly impact a sector that, since its legalization in 2021, has become one of the most dynamic in the Cuban economy.
During his speech, the head of Government detailed that 77 new state-owned micro, small, and medium enterprises (mipymes) were established this year, bringing the total number of these entities to 330.
In parallel, 816 private micro, small, and medium-sized enterprises (mipymes) were registered, bringing the total to 11,866 nationwide, along with two non-agricultural cooperatives that raised the total number of these management forms to 73.
However, he emphasized that "actions continue for the organization of their social objectives," a formulation that has practically translated into greater controls and reviews.
Marrero also reported on the approval of the regulation for wholesale trade for non-state economic actors, a measure that eliminates the requirement to conduct wholesale operations exclusively through state entities.
However, he acknowledged that the decentralization of the authority to approve the creation of private small and medium-sized enterprises and non-agricultural cooperatives is progressing slowly.
So far, that designation has only been granted to 65 municipalities, which limits the sector's expansion in the rest of the country.
In that context, the prime minister noted that a methodology was implemented for controlling and supporting entities in losses, although the results show that most of those assessed were unable to reverse their situation.
In response, the government chose to shut down several of them, a decision that contrasts with the official discourse on the need to "revitalize" the economy.
According to a report from the newspaper Granma, within Objective 4 of the Government Program, aimed at restructuring and managing state enterprises and other economic participants, the creation of the National Institute for the Management - or Assets - of State Enterprises was also announced, with its structure and staffing currently being developed.
This new entity reinforces the government's emphasis on the state sector, even as private small and medium-sized enterprises (mipymes) have taken on a key role in providing goods and services that the State is unable to guarantee.
Marrero also defended a Decree Law to implement new business modalities between state-owned legal entities and national private entities.
Among these figures, he mentioned franchise contracts, the involvement of nationals with financial capabilities in productive chains, and the acquisition by state-owned companies of stakes in private limited liability companies.
These proposals were presented as a means to "reverse the situation," although they are framed within a framework where the State maintains decisive control.
The decline of the private sector contrasts with official data released months ago by the National Office of Statistics and Information (ONEI).
In August, the entity published a preliminary report on the business and budgetary system corresponding to the first half of 2025, which expressly excluded mipymes and cooperatives.
That report showed a slight increase in the number of registered entities, with growth in the state business sector and a reduction in the budgeted amount, as well as a decrease in the number of entities with losses and a slight improvement in economic efficiency indicators.
The exclusion of micro, small, and medium enterprises (mipymes) from that analysis was interpreted by analysts as a sign of the secondary status the government assigns to the private sector, despite its actual significance in the daily economy.
For months, academic voices and independent studies have warned about the official ambivalence towards entrepreneurs, whom the regime considers a necessary evil, a tolerated resource, but not one that is wanted.
Research cited in previous reports highlights that, although small and medium-sized enterprises (mipymes) have contributed to some economic relief and access to food, supplies, and basic products, authorities continue to exhibit distrust towards these actors.
Changing regulations, bureaucratic hurdles, and constant controls have characterized its operation, even though more than 11,000 private companies have registered since its legalization.
In practice, the closure of dozens of small and medium-sized enterprises and the emphasis on strengthening the state apparatus reinforce the perception that private initiative is only accepted in a limited and conditional manner.
While the Government acknowledges their usefulness amid the crisis, it maintains a supervisory and restrictive approach that directly impacts the ability of these businesses to establish themselves and contribute sustainably to the country's economic recovery.
Filed under: