“If small and medium-sized enterprises could operate freely, many of Cuba's economic problems would be resolved in a month,” said economist Elías Amor in an interview with CiberCuba this Thursday.
In those words, he summarized his assessment of the new government decree in Cuba that allows partnerships between state-owned enterprises and mipymes cubanas, a measure that the regime presents as part of the economic model update.
Far from the official optimism, Amor believes that the initiative should be analyzed cautiously and warns that, as it is designed, it will hardly resolve the structural problems of the Cuban economy.
There is nothing good to expect from this measure, he stated when assessing the scope of the regulation. In his opinion, it lacks an essential element: the basic principles of supply and demand, which have been ignored for decades in Cuba.
There is no economic theory behind this, he pointed out. “When politicians make decisions that go against economic theory, what ends up happening is disaster.”
The warning to entrepreneurs: “Let no one go out to celebrate it.”
Amor issued a direct warning to the owners of mipymes cubanas and those managing private businesses in Cuba, urging them to exercise caution regarding the new decree.
“Let no mipyme get upset,” he stated when referring to the expectations generated by the regulations among some entrepreneurs. He explained that as long as the legal framework governing business activities on the island does not change, the development of the private sector will continue to depend on state control.
In order for Cuban SMEs to truly boost the economy, basic guarantees are essential:
- Real business autonomy.
- Freedom to grow without administrative limits.
- Freedom to distribute profits among partners and investors.
- Legal security for private businesses.
Otherwise, everything will continue to depend on the discretionary power of the State. He emphasized that despite the new decree: “The Ministry of Economy can undo whatever it pleases.”
Amor acknowledges that the new regulation partly reflects the pressure that the growth of Cuban mipymes has exerted on the regime, but believes that the outcome is, for now, a bitter-sweet victory for the private sector.
In his view, the solution to the crisis of the Cuban economy lies in allowing the expansion of private enterprises capable of generating wealth, while unproductive state structures should either disappear or be transformed.
The new government decree in Cuba regarding small and medium-sized enterprises (mipymes)
On March 3, 2026, the Official Gazette published the Decree-Law 114/2025 and Resolution 8/2026 from the Ministry of Economy and Planning, which establishes the legal framework for partnerships between state enterprises and non-state actors, including Cuban mipymes and cooperatives.
The regulations allow the creation of mixed limited liability companies, in which state entities participate in existing private enterprises or where both parties sign economic partnership contracts.
The Cuban government stated that its goal is to promote productive linkages and increase national production amid the crisis. However, all operations must have the authorization of the Ministry of Economy and Planning, which maintains direct state control over these projects.
For Amor, that design can create an unequal relationship between state-owned companies and private businesses in Cuba.
“This measure will only restructure the landscape of entities and allow some state-owned companies to take powerful SMEs under their wing to serve their interests, she stated.”
Elías Amor Bravo was born in Santiago de las Vegas in 1958. He went into exile at a young age with his family and has carried out all his professional activity in Spain, where he has lived since 1969. In his view, the true change would be to allow mipymes to operate freely and without constant government intervention.
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