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Entrepreneurship in Cuba: the dream and the nightmare

The same factors that spur thousands of Cubans to start their own businesses hamper their development. Two entrepreneurs from Matanzas share their experiences.

Matanzas
Products from Chulerías, by Cuban entrepreneur Mayte Hernández.
Products from Chulerías, by Cuban entrepreneur Mayte Hernández. Chulerías

Mayte Hernández did not finish her Economics degree in college. After graduation, she could not stomach the idea of having to sit in an office and stare at a computer screen for eight hours. Today she is one of the thousands of Cuban entrepreneurs trying to make their way on an island lacking in infrastructure and support services, and racked by inflation.

"I started in early 2021. With the pandemic we stayed at home for a long time, and I was in the process of decorating mine. I had several photos of string art on Pinterest, and I fell in love with the details of that manual technique. I thought the results were incredible, so I decided to make a 'Home' sign. That was the first one."
Two months later Mayte began designing small string art works to sell on February 14, and this is how her business, Chulerías, came about in Matanzas.

"From there, it was a bittersweet path. Getting the materials was a constant source of stress. I didn't have a place to buy what I needed. Although I couldn’t really keep the Instagram account updated all the time, trying to was worth it to me, because I loved doing it."

For 34-year-old architect Lourdes Hernández, entrepreneurship began while she was still a student. The essence of her work consists of making boxes, organizers and other objects that customers ask for to decorate their homes.

"It began as a hobby, until I decided to start a business and sell, but on a very small scale. Maternity was what led me to dedicate myself to the business, as I had more time to think and expand production. Seeing the results, I chose to work from home so I could spend time raising my children," says Lourdes about how Kjas got started.

"Working with wood is part of a family tradition," she says of her inclination towards this type of craftsmanship. "My father, a carpenter, taught me a lot, especially to appreciate how to do it. I like to use scraps and recycled materials. Producing something nice from what some might consider garbage is gratifying."

Entrepreneurship, disease or cure?

Liberation from working for the State, increasing one's income, and growing, from a personal point of view, are motivations driving entrepreneurs, despite the fact that in Cuba it is difficult to find suppliers and advertise one's business.

"The best thing is that you can take on the level of work that you're able to handle, and the worst thing is that you have to be able to organize your time and finances. Every day more and more people are choosing to start businesses because they get excellent results and there are many opportunities out there, if you can spot them. Many choose the basics, others look for lines that are lacking, seeking to work in them in a more professional way," says Lourdes.

According to Mayte, "people are choosing, more and more, to start businesses because they find that they can make a little more money than working for the State. In many cases they are graduates with degrees in Architecture, Medicine, Law, etc."

"The good thing about being self-employed is, in my case, doing what I really like and am good at, and also organizing my schedule and plans, in general. The bad thing is not having anywhere to go to buy the necessary tools and materials," adds the creator of Chulerías.

The risks and difficulties mean that many business owners have to close and return to their state jobs to generate income, or they try to change their business by observing trends. Others brave adversity to keep their projects alive.

"The main thing is desire. One can run into a lot of obstacles, but with imagination and perseverance, you find solutions. The most difficult aspect is to obey the law throughout the process," says Lourdes Hernández.
Entrepreneurs' lack of training is a recurring factor that affects their performance. Online courses offered by foreign institutions cannot be accessed by Cuban residents.

A few years ago, the First Creation and Development of New Forms of Non-State Management Workshop was held in the Historic Center of Havana, with the aim of promoting local entrepreneurship, an effort undertaken in line with the Master Plan of the Historian's Office and the capital's university.

In addition to this initiative, others have emerged such as Cuba Emprende, a course on entrepreneurship to give students skills and tools in this regard. Havana is the epicenter of workshops on topics like this, with people from other provinces having limited options.

"Being an entrepreneur in Cuba is three times more difficult than in other countries. The lack of resources, the slow connections, to promote products; the inability to collaborate with other brands, the restrictions on social media, the high inflation, have too many consequences. Your art becomes a luxury. Money is for food, hygiene and medicines," says Mayte Hernández.

"The risk of self-employment is that it's not as consistent as working for the State, if we are talking about the economic level. I just sell over the phone, taking customized orders, and I have no intention of changing that," she adds.

Lourdes believes that "it's all risky. Still, I think it can be done. The legal issue is complicated. The personnel in charge of advising you how to organize the business, legally, sometimes don't know much, or are only aware of a certain rigid structure; and the economic part is crazy. Most of the materials appear on the informal market, or, legally, through importers, but that means much higher prices."

The secrets to success

Lourdes stresses that "the key to success is perseverance, maintaining the brand, and trying to reach the customer, getting them to be satisfied with the product. Quality and creativity are very important."

"You have to love what you do, because motivation may not be there; it's ephemeral, it comes and goes. No less important is constancy; create a habit and you'll keep evolving. Having discipline in any aspect of life will make you better at it," Mayte says.

"In 2024, the migration issue hit us, and our productive capacities haven't recovered. I work alone, and production is well below customer demand, which affects me a bit. Finding staff who are qualified or eager to learn is also a challenge," says Lourdes.

On social media there are accounts run by university students who decide to start businesses outside the law to pay for their purchases, go out, and to help their families meet their basic needs.

New businesses in the current Cuban context are a boon for property owners and for the population, both for the profits they generate, for the former, and the possibilities they offer the latter in terms of diversified access to products that the State does not offer. Whether a business becomes a dream come true or a nightmare all depends on the entrepreneur, his resources, his resources, and his luck.

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