TODAY, THE LARGE AMOUNT OF BUSINESSES UNMANAGED BY THE CUBA STATE COULD ACTUALLY SURPRISE THOSE WHO, AFTER A LONG WHILE WITHOUT VISITING IT, TAKE A CLOSER LOOK AT THIS CARIBBEAN ISLAND. FOR DECADES, THE PRIVATE SECTOR WAS VIRTUALLY UNDER WRAPS IN THE CUBAN ECONOMY.

One of the most important actions within this program is the enhancement of the private sector, a necessary adjustment the Cuban economy had been screaming for in a bid, among other things, to raise productivity. This comprises the so-called “self-employment”, a term used when referring not only to the private sector, but also to cooperatives, joint ventures and foreign companies.
Several measures have progressively boosted the advance of the private sector. Firstly, a number of “self-employed” activities were approved as state-run enterprises started to slash their payrolls. More recently, the scope of cooperatives was broadened to non-farming activities. Nearly half a million licenses have been granted for “self-employed” jobs and as many as 500 non-farming cooperatives have been approved.
The top tier of self-employed jobs is dominated by the making and sale of food, commuter transportation and private room rentals. As far as non-farming cooperatives are concerned, gastronomy, retailing of farming products and building are the top three activities.

Agriculture and Stockbreeding
As part of the economic transformations, the Cuban State has paid special heed to the rekindling of Cuba’s agricultural and stockbreeding sector –it had actually been working on it since 2007 before the updating process was made official- in order to stave off insufficient outputs nationwide aimed at supplying the domestic market and restricting dependence on the importation of foodstuffs.
The most transcendental action taken in this sense was the delivery of untilled lands in usufruct to those willing to embark on the farming and stockbreeding, thus enhancing the part of this field now run and managed by the private sector.

Making and Sale of Food
Several restaurants and cafeterias, traditional managed by the State, are now being run by cooperatives. Varied and vast offers are now on the table in a large network of restaurants, cafeterias and bars, a sector that’s increasingly blooming all across the island nation. Many establishments are slowly coming up with their own direct supply networks of farming products, a situation that generates linkages inside the economic activity and brings benefits for all the parties involves. These businesses play a major role in supporting the travel industry’s extra-hotel sector.

Transportation
One of the main hardships endured by the Cuban people has to do with transportation services. The State’s enormous efforts to renew the stock of commuting vehicles are not good enough to meet the service’s needs. Therefore the addition of a larger number of private transporters and, more recently, cooperatives, is by and large a way out to complement the service provided by the State to both local commuters and the increasingly bigger number of tourists that visit the island.

Accommodations
In early 2015, the private sector was chipping in 18,742 rooms nationwide, accounting for 23 percent of the 80,832 guestrooms the island nation has to cater to national and international tourists. House rentals are highly attractive for many foreigners that visit the island and come eager to learn about the local traditions, the culture and the idiosyncrasy of the Cuban people. That becomes a safe way to interact with families and enjoy a more customized, intimate and cozy atmosphere.

Building
Based on the number of licenses granted –as many as 68 through March 2014- this is the third major activity run by non-farming cooperatives in the country. Its impact is undeniable in the face of those who live on the island, though it could be further expanded. In addition to providing services to private owners, these cooperatives are linked to the public sector in terms of contractual relationships, standing for an option to execute maintenance and construction works in those entities that hire their services.
What’s more, the normalization of relations between the two countries could also pave the way for the opening of joint businesses, funding sources, increase of Cuba exports, the possibility to purchase equipment, consumables, supplies and spare parts for transportation means, as well as imports for the country’s business community. But all this much can help the private sector make far more headway and become more competitive as a functional part of the new economic model under construction.