Cuba allows the creation of small and medium-sized enterprises
13% of the active population of Cuba works in the private sector, but these self-entrepreneurs demanded a legal structure to set up their business (illustrative image).
REUTERS / Alexandre Meneghini
Text by: RFI Follow
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The Cuban communist government on Friday August 6 approved a law authorizing the creation of the statute of small and medium-sized enterprises (SMEs), a measure eagerly awaited by the private sector, in a country where public enterprises are the rule.
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This is perhaps one more step towards the privatization of the Cuban economy.
The Council of State gave the green light on Friday to the law on micro, small and medium-sized enterprises announced in June.
They may be public or private, but their sectors of activity will be limited to non-strategic areas, which notably excludes health, telecommunications or energy.
These companies will be classified according to their number of employees: from 1 to 10 people for a micro-enterprise, from 11 to 35 for a small one and from 36 to 100 people for the medium-sized ones.
This will allow them to be, according to the National Assembly, "
an actor in the productive transformation of the country
".
Modernize the economy
Because the transformation does indeed seem to be there.
Struck by one of the worst economic crises in thirty years, the Cuban government wants to modernize its economy.
In February, he decided to open the majority of economic activities to the private sector, except in certain areas such as the press or education.
Already 13% of the active population of Cuba works in the private sector, but these auto-entrepreneurs demanded a legal structure to create their business.
With this law on SMEs, this is starting to take shape.
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To read also:
Cuba: the announced economic measure does not satisfy social discontent
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Cuba
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