Cuba govt allows incorporation of small businesses

The Communist Cuban government decided to incorporate small businesses across the country

Saturday, 14th August 2021

Cuban govt allows incorporation of small businesses

Havana, Cuba: The Communist Cuban government decided to incorporate small businesses across the country. The move has become the most significant reform taken by the countries' government since it nationalized all enterprises in the 1960s. The new reform allows all small and medium-sized businesses (MSMEs) to get incorporated in the coming months. The recent decision comes after the US tightened restrictions and the Cuban economy is striving to survive. "The first step is to build what we have," the Economy Minister Alejandro Gil Fernández announced, pointing out to the undergoing restructuring, in a regular manner and under the control of the government. Meanwhile, Economy and Planning Deputy Minister Johana Odriozola Guitart gave more information on the method of creation of the norms. She said the government is preparing many legal provisions varying from the highest to the lowest levels of legislative authority. Guitart said the current focus is to agree on the basic principles of legislation and to understand the benefits in the financial sector. Minister said Micro, Small and Medium Enterprises (MSMEs) would have the same administration model, notwithstanding the property's nature. She underlined that the new norms would have a more extensive scope because we must regularize the features of financial matters that does not exist so far. The incorporation reforms were long demanding by Cubans; it appears the new decision was made because thousands of people protested to demand the end of the communist regime. Over 380 demonstrators are in jails, waiting for trials days after being captured. Some believe the decision is to suppress the increasing dissent and divert attention from the worse COVID-19 outbreak on the island. The government is expecting a positive outcome from the incorporation of small and medium businesses. It would benefit both, economy and the owner of the enterprise and encourage entrepreneurship.