Cuban Entrepreneurship in 2021: A Talk with Erich Garcia-Cruz, Yasser Gonzalez, and Adriana Heredia
Cuban Entrepreneurship in 2021: A Talk with Erich Garcia-Cruz, Yasser Gonzalez, and Adriana Heredia
Restrictions imposed by the Trump administration, COVID-19, and economic reforms shaped the entrepreneurial environment in Cuba, said the entrepreneurs on the ground.
Speakers:
- Erich Garcia-Cruz, CEO, BacheCubano
- Yasser González Cabrera, Founder, Citykleta
- Adriana Heredia Sanchez, Co-Founder and CEO, Beyond Roots
- Yndira Marin, Director, Council of the Americas and Head of Cuba Working Group, AS/COA (chair)
- Brett Perlmutter, Head of Google Cuba (moderator)
In a YPA panel on cuban entrepreneurship in 2021, the cuban entrepreneurs spoke about the conditions on the ground for starting and running a business amid the deterioration of U.S.-Cuba relations during the Trump administration and further restrictions on tourist travel for most U.S. citizens hoping to visit the island. With tourism representing important economic activity heavily affected by these sanctions with the Covid crisis preventing most sectors from functioning normally, cuban GDP fell 11 percent in 2020, according to the Cuban government, said Adriana Heredia Sanchez. She explained other reforms implemented by authorities, like the extinction of the Convertible Peso (CUC), unifying the official currencies of the country. Despite the efforts, the economy is still struggling, with prices more than doubling in some instances and many supply chains affected.
Some businesses are turning to cryptocurrencies to avoid the instability and inflation of the official currency, said Erich Garcia-Cruz. He explained that people like him need to have in mind multiple exchange rates, including the official one, the one used in the black market, and the cryptocurrencies’ rates in relation to the U.S. dollar and the cuban peso. Yasser González Cabrera spoke about his experiences of being a cuban entrepreneur and how more people-to-people dialogue and opportunities are necessary between Cuba and the United States. The panelists argued that the decrease in the flow of American travelers to the island forced many businesses to expand their focus beyond foreign tourists to opening up domestically. Despite having room for improvement, Heredia thinks that the expansion of allowed entrepreneurial activities is a step in the right direction providing greater legal security for business owners.
