Cuban entrepreneurs face shutdown fears amid new regulations

Cuba's private sector, which has seen significant growth since the government allowed private enterprise in 2021, is now facing new restrictions that threaten its survival. Entrepreneurs like Gabriel Mosquera Mourlot, who import essential goods, are concerned about the impact of these regulations on their businesses. The government claims these measures are necessary to control inflation and combat corruption, despite many economists arguing that the private sector is not to blame for the economic crisis. The Cuban economy is struggling due to reduced tourism and ongoing U.S. sanctions, leading to inflation and shortages of basic goods. This economic downturn has prompted over a million Cubans to emigrate in the past year, exacerbating the situation. The government has limited private businesses to 100 employees and restricts individuals to owning only one business, stifling potential growth and employment opportunities. Despite the government's acknowledgment of the private sector's importance, the new regulations reflect a fear of its rapid growth and autonomy. Experts suggest that instead of imposing restrictions, the government should incentivize private entrepreneurship to foster economic recovery. The hope that many entrepreneurs felt when starting their businesses is diminishing as they face increasing uncertainty. The situation highlights the tension between the government and the private sector, as officials seek to maintain control while acknowledging the need for economic contributions from private enterprises.