Empowering the Cuban entrepreneur
Cuba counts over half a million legally registered self-employed, the so-called cuentapropistas, and the number is still growing. These Meso, Small and Micro Enterprises (MSMEs) all together are an important economic incentive, providing both Cubans and tourists with a large range of goods and services, creating jobs, and generating income and savings.
Establishing a favo
rable environment for MSMEs development, will make the self-employed sector eventually a strong pillar in Cuba’s economy, stimulating entrepreneurship and reducing unemployment at the same time. We strongly believe that Cuba’s emerging enterprise sector offers a large stimulus for a more dynamic Cuban economy, especially if it is permitted to partner with foreign investors and capacity builders.
We realise that, next to the need for finance, training (financial and practical management) and coaching are equally important in enterprise development in general and in Cuba in particular. We work closely with existing parties in Cuba to provide the proper practical training and technical assistance to Cuban entrepreneurs wishing to enter the world of cuentapropistas or to expand their existing business.
Next to training and coaching we intend to set up a social impact hub in Havana; a social environment where entrepreneurs can meet to exchange experiences and collaborate, creating new opportunities, joining efforts and developing their businesses.
We aim to connect Cuban cuentapropistas with social investors, entrepreneurs and coaches from all over the world providing all parties the possibility to contribute to the Sustainable Development Goals (SDGs) and create positive social impact in Cuba.
The entrepreneurs and the banks
Reformations in the sector of self-employment, starting in 2010, instigated a boost to the sector and the Cuban economy. The island has seen an enormous rise in entrepreneurial activity between 2011 and 2015 and the number of (small) enterprises has more than tripled. Still, the existing entrepreneurs are unable to supply the Cuban people and the tourists with sufficient goods and services. The demand is rising vastly due to the scarcity of goods in the state-owned stores, as well as the growing number of tourists. The latter augmenting even more once the Cuban travel ban is lifted by the USA, as expected.
With the rise in demand and entrepreneurial activity on the one hand, we see however a large gap between the entrepreneurs and the banks on the other hand. The gap is caused by aspects like lack of confidence and knowledge of financial products and services on both sides. This is were Stichting Credit4Cuba steps in! First, we aim to offer financial training programmes to both groups, the Cuban entrepreneurs and the bankers. Second, we intend to develop finance instruments, like a Guarantee Fund, to support qualified cuentapropistas in need of finance, giving the possibility to make their business successful while participating fully in the Cuban economy.