Liberal Forum

Private businesses in Cuba, primarily  known as mipymes, face a restrictive operating environment. While the 2019 constitution recognized private property, a wave of new regulations and intensified external sanctions in early 2026 has significantly limited their growth and daily operations.

Structural and Regulatory Barriers
The Cuban government maintains a centralized model where private entities are officially designated a "secondary role," leading to arbitrary policy shifts. 

• Size and Growth Caps: Private companies are strictly limited to 100 employees. Businesses exceeding this often resort to legal "subterfuge," as the consequences of reaching the cap remain legally unclear.
• Sector Prohibitions: The list of activities prohibited to the private sector was recently expanded to 125 activities, including new bans on private teaching academies (music, art, and languages).
• Supply Chain Disruptions: New regulations require MSMEs to sell wholesale strictly to state entities, stifling direct B2B competition and complicating logistics.
• Ownership Restrictions: Entrepreneurs are generally limited to one license per person, effectively outlawing franchising or business diversification.

Financial and Economic Constraints
Businesses operate in a highly unstable financial landscape marked by persistent inflation and limited access to formal banking. 

• Currency and Banking: All operations must be conducted in Cuban pesos through mandatory electronic payment channels. However, businesses lack a formal mechanism to access the foreign currency needed for imports, forcing them into risky informal markets.
• Profit and Price Controls: The government has imposed 30% profit margin caps on essential goods like oil and chicken, causing many businesses to stop ordering these items entirely.
• Taxation: Recent shifts include a new 5% workforce tax and the removal of previous tax incentives. Wage scales are also regulated.