Cuba Business News and Information

Cuba Business Opportunities

The Business Insider wrote a great article that summarizes current and future business opportunities in Cuba writing that proposed economic changes in Cuba may be similar to the changes experienced by China in the 1980s and Vietnam in the 1990s.

Here are some of the proposed changes to the Cuban economy:

• Permit real estate transactions amongst Cubans
• Merge the two-tier currency system
• Close down inefficient state enterprises
• Decentralize state ownership
• Facilitate private ownership of businesses
• Distribute idle land to farmers
• Open state-owned wholesale markets
• Further encourage foreign investment – particularly in tourism

Cuba Business Risks

The Economist Intelligence Unit released a Cuba risk scenario watchlist in March 2011 featuring their assessment of risks in Cuba with regards to security, political stability, government effectiveness, macroeconomic, financial, tax policy and more with risk ratings of high, moderate to low.

The high probability factors in Cuba are

• Businesses suffer losses due to theft
• Relations between Cuba and the US improve more slowly than anticipated, hindering investment plans
• Heavy regulation inhibits the scope for business
• Poor telephone and Internet services disrupt business and increase operating costs

while the high impact factors are

• Managers become involved in petty corruption, resulting in prosecution or sanctions
• The political transition to a new leadership is mismanaged, generating social unrest
• Relations between Cuba and the US improve more slowly than anticipated, hindering investment plans
• Heavy regulation inhibits the scope for business
• Operating licences are revoked
• Assets are confiscated in the US, or penalties imposed for violation of US sanctions
• A change of government in Venezuela results in termination of agreements for oil imports and services exports
• Economic reforms fail to stimulate private sector and end up boosting inflation
• Reduced foreign-exchange inflows prompt a liquidity crisis, with state enterprises defaulting on payments to foreign firms

Cuba Business Related Websites

We offer Cuba consulting services for companies and individuals seeking to understand the opportunities, risks and challenges of Cuba business.

The Cuba Chamber of Commerce is an organization for owners of developed websites featuring Cuba related business ventures. Business owners from around the world are welcome to join.

For businesses with a valuation (or potential valuation) of more than $1million, please visit our Cuba venture capital site currently in development.

Check out the premier Cuba business association at US Cuba Trade Association and read the Cuba Trader for Cuba business news and CubaNews.com for great original Cuba content.

The Cuba Study Group released a comprehensive report Supporting Small Business in Cuba in April 2011 featuring information about:

• The future role that small businesses and those who are self-employed can play in Cuba’s economy
• Lessons from other countries that have undertaken reforms to promote small business
• Short and medium term initiatives for individuals and NGOs to support and nurture entrepreneurship and self employment
• Steps the U.S. government can take to ensure its own policies do not hinder small business development in Cuba