Cuba opens door to more private business, but red tape looms

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After five years of waiting, a new legal system that takes effect on Sept. 20 in Cuba could greatly expand the scope of private businesses and give them greater legal certainty. Some hope the change could help an economy in crisis.

Carlos Gomez, 35, owner of the audiovisual production company Wajiros Films, poses for a photo at his company's editing room in Havana, Cuba, Thursday, Sept. 2, 2021. Most sorts of private businesses have been banned for more than 50 years, but now a new legal system takes effect on Sept. 20 that could greatly expand the scope of private businesses like Gomez´s, and crucially give them greater legal certainty in efforts to help an economy in crisis.

Now, after five years of waiting, a new legal system takes effect on Sept. 20 that could greatly expand the scope of private businesses, and give them greater legal certainty in efforts to help an economy in crisis. At that time, warehouses, bars or repair shops were closed or absorbed by the state, which struggled to manage those businesses efficiently.

“One was tied to a ‘self-employment’ license that had many limitations. With the legalization , new possibilities and perspectives are opened. Among these is the recognition of several partners in a business and legal status,“ said Lauren Fajardo, designer and co-owner of Dador, a clothing workshop created by her and two friends that employed about 10 people. Like hundreds of other initiatives, the business has been paralyzed by the pandemic.

“The positive thing about these rules is that they arrived... I think it is time to think about how to take advantage of it and that these really contribute to the growth of the country, “ economist Omar Everleny Pérez said.

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