The Government of Cuba approved the decree of law that allows the operation of private and state SMEs as an actor that “affects the transformation” of the island’s production.
“The decree-law on micro, small and medium-sized enterprises was approved, which facilitates their coherent insertion in the legal system, as an actor that affects the productive transformation of the country,” said the official newspaper Granma.
The measure, long awaited by hundreds of Cuban entrepreneurs, comes a month after the July 11 and 12 demonstrations where they demanded changes from the state and which left a fatal victim, dozens of injuries and several detainees.
The Council of State determined that SMEs could be state, private or mixed and that micro companies could have from one to 10 employees, small companies from 11 to 35 people and medium companies up to 100 workers.
Last February, the government expanded to more than 2,000 the activities in which independent workers can carry out their tasks in the socialist Cuban economy.
The first Minister, Manuel Marrero Cruz, had said in June that the expansion of activities at the hands of private companies “does not lead to a privatization process, as there are limits that cannot be exceeded.”
The state company continues to be “the main subject of the national economy,” the leader had ratified at that time.
The Cuban government had recognized that small businesses already operate in a “disguised” manner, but with a legal framework, greater interest in these businesses could be generated, the AFP news agency reported.
In the ordinary session of the Council of State, in which the president participated via videoconference Miguel Diaz-CanelOther measures aimed at the development of non-agricultural cooperatives and independent or self-employed workers were also approved.
Cuba is accelerating its reforms, while facing a deep drop in its GDP due to the coronavirus pandemic that hit the tourism sector, the engine of its economy, and in the midst of the historic blockade imposed by the United States that the former president toughened. Donald Trump and the current president Joe Biden.