During a live broadcast on CiberCuba, a viewer posed a question that highlights the core contradiction within Cuba's economic system: "With that system, no small business will ever be independent. You need to understand what the word dictatorship really means." This comment was made during the weekly program hosted by economist Elías Amor every Thursday at 11 a.m. Miami time. In a conversation with Tania Costa, Amor tackled this question head-on, offering a candid analysis.
The Nature of Small Enterprises in Cuba
Amor describes these small enterprises, or Mipymes, as "private businesses created by individuals in Cuba to engage in activities that either the government doesn't handle or doesn't handle well," emphasizing their inherently spontaneous nature. "I genuinely believe the development of a Mipyme is completely spontaneous, and they should be allowed to operate freely to determine their path and potential," Amor asserts.
State Influence and Historical Context
Despite acknowledging the spontaneous essence of Mipymes, Amor concedes to the viewer's point (who identified herself as Vivian) regarding state influence. "The listener is right in saying that government intervention is significant," he admits, before drawing a comparison that sheds light on the underlying dilemma.
Amor points to the economic models of Vietnam and China to illustrate how private enterprises coexist with a single ruling party: "In Vietnam and China, where a communist party directs politics, companies are under the control of that communist party, even if they are private. Their operation framework is a market economy, but one that's monitored by the communist party."
Contrasts with Western Democracies
The contrast with Western democracies is stark. "In Spain, Germany, and France, there is no party overseeing businesses." The implication is clear: in Cuba, much like these Asian models, private businesses can exist, "but they cannot be truly free in every sense of the word."
Challenges and Restrictions Over Time
The historical trajectory of Mipymes in Cuba supports this view. Officially sanctioned in September 2021 after years of prohibition, they have continually operated under the dual pressures of the regime's economic needs and its inherent desire for political control.
This tension has manifested in a series of successive restrictions. In August 2024, Decree 107 prohibited 125 activities in the private sector. A leaked recording in December of that year exposed the private sector's dissatisfaction with attempts to install Communist Party cells within the Mipymes themselves. By the end of 2025, the government had shut down dozens of businesses under a "distortion correction" program.
The Future of Private Enterprise in Cuba
The regime has vacillated between allowing and stifling entrepreneurship. By September 2025, the Cuban government viewed private entrepreneurs as a "necessary evil": useful for alleviating the crisis but perceived as a threat to state control. Subsequently, the regime's elite labeled private enterprise as a "cancer," underscoring the relevance of Amor's analysis.
In July, Amor warned that the emerging private sector should not bear the burden of pension payments, a responsibility that belongs to the state, highlighting yet another attempt by the regime to shift its obligations without relinquishing control.
Amor concludes that the success or failure of each Mipyme "will depend on their ability to connect with customers and offer competitive prices." However, the political environment they operate in is far from neutral: it is dictated by a single-party regime that, akin to Vietnam or China, determines the extent to which private enterprise can flourish.
Understanding the Challenges of Mipymes in Cuba
What are Mipymes in the Cuban context?
Mipymes are small private businesses created by individuals in Cuba to carry out activities that the state either does not perform or performs inadequately. They are characterized by their spontaneous nature and are allowed to operate within a controlled economic environment.
How does the Cuban government impact Mipymes?
The Cuban government imposes significant restrictions and controls over Mipymes, similar to the models seen in Vietnam and China, where private businesses exist but are closely monitored by the ruling communist party. This impact limits the freedom and independence of these enterprises.
Can Mipymes succeed under a dictatorship?
While Mipymes can operate and achieve some level of success, their growth and autonomy are heavily constrained by the political environment of a single-party dictatorship, which dictates the extent of their freedom and potential.