{"id":290672,"date":"2023-10-25T20:35:15","date_gmt":"2023-10-26T00:35:15","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=290672"},"modified":"2023-10-25T20:35:15","modified_gmt":"2023-10-26T00:35:15","slug":"almost-9000-private-msmes-employ-some-260000-people-in-cuba","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/almost-9000-private-msmes-employ-some-260000-people-in-cuba\/","title":{"rendered":"Almost 9,000 private MSMEs employ some 260,000 people in Cuba"},"content":{"rendered":"

The almost 9,000 private <\/span>MSMEs<\/b><\/a> in Cuba employ some 260,000 people, according to official data.<\/span><\/p>\n

The figure is less than the 1.4 million workers employed by state enterprises on the island, but it is still significant in the current socioeconomic context of the island.<\/span><\/p>\n

Until the end of September, two years after the first approvals by the Ministry of Economy and Planning (MEP), 8,964 private MSMEs had been authorized in the 15 provinces and in 167 of the 168 municipalities of the country, <\/span>according to data published<\/b><\/a> by the <\/span>Cubadebate<\/span><\/i> website.<\/span><\/p>\n

Only the municipality of Bolivia, in Ciego de \u00c1vila, does not have any.<\/span><\/p>\n

Of these new economic actors, 55% are newly created, while 45% are the result of conversions of businesses that already operated with a self-employment license or as non-agricultural cooperatives.<\/span><\/p>\n

Contrary to the social perception that MSMEs are mainly dedicated to the sale of imported products, MEP data indicates that their \u201cmain activities\u201d are gastronomy, construction, manufacturing industries and the industrial production of food and beverages.<\/span><\/p>\n

Only in fifth place is the marketing of goods, whether national or imported products, according to the official media, which does not offer figures in this regard.<\/span><\/p>\n

Regarding the greater visibility of these latter MSMEs, <\/span>Cubadebate<\/span><\/i> considers that the nature of their activity, which \u201cinvolves a process of direct exchange with the population,\u201d is what makes this type of business most \u201cvisible.\u201d<\/span><\/p>\n

Furthermore, it adds that it is not only MSMEs dedicated to commercial activity but also other economic actors such as self-employed workers.<\/span><\/p>\n

Likewise, the publication takes up an argument that has already been put forward by quite a few experts: \u201cin order for there to be more production MSMEs, a national policy for the promotion and development of small businesses should design a system of incentives that stimulate them above other economic activities.\u201d<\/span><\/p>\n

\u201cWithout falling into the trap of demonizing commercialization, a legitimate and necessary activity within value chains that is partly solving the consumption of a segment of the market, it is necessary to encourage production with economic and financial mechanisms,\u201d the text insists.<\/span><\/p>\n

For now, according to data shared by <\/span>Cubadebate<\/span><\/i>, the private and cooperative sector to which MSMEs belong represents up to 13% of Cuba\u2019s GDP, barely 8% of imports and \u201ca tiny portion\u201d of exports.<\/span><\/p>\n

In its analysis, the official media highlights that \u201cthe emergence of the thousands of MSMEs that exist today has not meant in any case the privatization of state assets.\u201d<\/span><\/p>\n

It also calls for overcoming \u201cthe antagonistic discussion of state-owned enterprises versus private enterprises and moving on to the discussion of how to generate more productive chains,\u201d while recognizing that the benefits of these economic actors \u201cshould not be ignored through generalizations and prejudices based on anecdotes or without data backup.\u201d<\/span><\/p>\n

However, in its defense of MSMEs, the publication states that, with only two years of existence, these enterprises are still \u201cin their embryonic state\u201d and that it is \u201clogical\u201d that \u201cin a complicated macroeconomic environment\u201d there be \u201cdistortions and problems to correct.\u201d<\/span><\/p>\n

Such a position aligns with recent statements by Cuban authorities who <\/span>have announced<\/b><\/a> that a \u201creview and update\u201d of the legal regulations that govern the operation of the new economic actors is underway.<\/span><\/p>\n

Who\u2019s going to sell dollars to MSMEs?<\/a><\/p><\/blockquote>\n