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50 new SMEs approved in Cuba.  Only one is the state

50 new SMEs approved in Cuba. Only one is the state

Cuba’s Ministry of Economy and Planning (MEP) has approved 50 new Mipymes, only one of which is state-owned. The new approved economic entities fuel the debate in the streets of the island regarding the existence of such a form of private administration. After fifty micro, small and medium enterprises have been approved by MEP There are now 8,623 soldiers operating on Cuban soil. Official data issued by the MEP indicate that licensing for private forms of management began during 2021.

Of the new companies approved, 49 are from the private sector and only one is from its government counterpart. In the first case, they will carry out activities related to the production of building materials, accommodation and gastronomic services.

Almost two years since the first Mipyme was approved

It was precisely in September 2021 when the Cuban government decided to allow private companies on the island, self-employed workers were already there, however, micro, small and medium enterprises arrived to stay, with other jobs and strategies within the national economy.

The crisis at that time forced the European Parliament’s authorities to “delegate”, above all, import tasks to MSMEs. Private companies bring food and basic necessities to the island that government companies no longer buy from abroad.

After their appearance, they sparked a lot of controversy because of the high prices they charge for their imported products. Inflation has increased since the inception of these private companies’ operations.

Current laws in Cuba reflect that MSMEs can be established as state, private or mixed. They are all recognized as an economic unit with a legal personality that has its own characteristics.

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However, as is well known, none of them have power or access to the “key” areas of the island’s government. In this case, there are health, communications, energy, defense and media.