Cuban entrepreneurs get enterprise coaching from the U.S., and hope that Biden lifts sanctions

HAVANA, Cuba — Musicians Ana María Torres and María Carla Puga began making bracelets and necklaces at dwelling in Cuba throughout the pandemic, they usually now have a flourishing enterprise. On an island that for many years prohibited non-public enterprise, they’ve had an unlikely adviser: the U.S. Embassy.

Torres and Puga are a part of a small group of entrepreneurs that benefited from a enterprise coaching program the embassy not too long ago supplied in Cuba, the place many younger entrepreneurs are much less cautious of the American authorities than these in earlier generations.

“We see it as a great opportunity,” says Torres, 25, who co-founded a retailer and workshop named Ama, which has a cafeteria and employs 12 individuals.

Ama is certainly one of nearly 8,000 small- and medium-sized corporations that had been legally approved to function in Cuba over the previous 12 months and a half.

The embassy coaching featured weekly on-line conferences masking all the things from advertising instruments and model administration to primary funds and the creation of internet pages. The homeowners of Ama had been amongst 30 entrepreneurs the embassy chosen from 500 candidates.

Torres and Puga recall the look of concern – and shock – in an older driver’s face when, on their strategy to exhibit a few of their merchandise, they requested him to drop them on the U.S. Embassy. The driver advised he drop them off one block away as an alternative.

“Our generation doesn’t really have so much limitation with respect to daring to take part in these kinds of things with the U.S. embassy, because the context is different,” says Puga, 29. “We know there are some conflicts, but we also know there is a lot that is being tried, especially with Cuban entrepreneurs, and we’re really not afraid.”

In 1968, the Cuban authorities shut down the few remaining non-public companies that had been left on the island after the 1959 revolution.

In 2010, nonetheless, then-President Raúl Castro initiated a reform to spice up the native economic system and allowed unbiased employees to work in actions like rental homes, eating places and transportation. These had been additional developed amid a 2014 rapprochement with the U.S. throughout the administration of President Barack Obama. Sanctions additionally had been eased throughout that interval.

Policy in the direction of the island hardened throughout the administration of President Donald Trump, and the economic system has but to get well from its 11% contraction in 2020. In tourism alone — a mainstay for nationwide earnings — the island welcomed simply 1.7 million guests final 12 months, lower than half the quantity of 2018.

Cubans have been feeling the consequences of yet one more disaster, mirrored by lengthy strains to get gasoline, shortages of primary items, blackouts, inflation and document emigration.

In September 2021, Cuba legalized the creation of small- and medium-sized companies to assist an economic system in disaster, a choice that Cubans and observers of the nation’s politics seen as historic.

Since then, 7,842 small- and medium-size corporations had been created, together with 65 non-agricultural cooperatives, producing some 212,000 jobs mixed.

However, a long time residing in a state-dominated economic system led to the lack of enterprise know-how, together with monetary administration, advertising methods, publicity and buyer relations.

“I am very happy with the renewed willingness of the United States embassy to pave the way for us in terms of knowledge… that is something we were lacking,” mentioned Adriana Heredia, a 30-year-old companion of Beyond Roots, a non-public enterprise that features a clothes retailer, a magnificence salon specializing in afro hair and numerous different cultural tasks.

Cuban entrepreneurs mentioned they appreciated efforts just like the U.S. embassy’s enterprise coaching program, however in addition they expressed concern in regards to the detrimental impression the U.S.-imposed sanctions have had on their economic system.

“There is a negative impact (of the sanctions) that is evident,” economist Ricardo Torres, a researcher on the Center for Latin American Studies on the American University in Washington, informed the AP. “The United States is the dominant market, the dominant economy. So all the financial and commercial restrictions that… weigh on entities that are based in Cuba will negatively affect entrepreneurs.”

Last month, representatives of 300 small- and medium-sized companies despatched a letter to President Joe Biden requesting, amongst different issues, facilitation of economic transactions, the institution of some type of allow for U.S. businessmen to put money into Cuba and commerce with non-public corporations, They additionally requested elimination of the island from U.S. checklist of nations that sponsor terrorism.

Cuban entrepreneurs really feel they’re caught between two forces: U.S. sanctions and limitations inside Cuba itself similar to excessive taxes, a scarcity of financing and state management over imports and exports. The island additionally lacks permits for professionals to determine themselves as unbiased employees.

“Unfortunately, Cuba’s private enterprises end up being subjected to a sort of crossfire,” Torres mentioned.

The Biden administration has promised a number of instances to reverse some measures affecting the island and its fledgling entrepreneurs, however the Cuban authorities says Washington has but to ship.

Benjamin Ziff, cost d’affairs on the U.S. embassy in Cuba, dismisses claims that the administration has applied few modifications. He pointed to the resumption of some flights and the sending of remittances, in addition to a slew of instructional and spiritual exchanges between each nations. The embassy’s enterprise coaching lessons, whereas a small measure to spice up the non-public sector, was certainly one of them.