Emerging Entrepreneurship and Foreign Investment in Cuba

Abstract

The recent opening of relations between the U.S. and Cuba in 2014 has yielded considerable excitement, particularly in light of Cuban and American policy developments over the past five years. Questions concerning the presence and extent of change in Cuba have garnered attention in the U.S., especially as related to business opportunities, as Cuba is viewed by many as one of the last emerging markets in the world. A significant subset of literature suggests that though the Cuban market represents great possibilities, the business climate is such that much still remains to be done before this potential can be realized. I posit that such a narrative, which focuses purely on the unfavorable conditions and obstacles to progress, overlooks possible opportunities that are ripe for action now. This is not to say that concerns over these obstacles are invalid, but rather that they should not dominate the discussion. I argue that processes related to the emerging private sector, including cooperatives and microenterprise, and to foreign investment indicate substantial change. I analyze the history and implications of developments from 2011 to 2016, specifically as they relate to these two economic sectors. Within foreign investment, I focus on (1) the Mariel Special Development Zone and Port, (2) real estate sales and development, and (3) the telecommunications sector as areas of particular interest for investors. This work builds upon the existing literature regarding both the Cuban economy and information communication technologies (ICTs) to identify opportunities that may be seized in the not so distant future. The methods used include books, surveys, newspaper articles, government documents, conferences, lectures, reports, ethnographical studies, and interviews with Cuban citizens and American analysts, authors, and professors. I identify the global shift towards the sharing economy and political leadership in both countries as factors that will influence how Cuba may change in the future. Lastly, I explore the possibility that changes in the entrepreneurial and foreign investment sectors could intersect in a way that capitalizes on the advantages of the sharing economy through the adoption of the Peers Inc. model. I contend that the adoption of this model has the potential to achieve significant growth at a considerable pace in Cuba