Among Cuba's reforms, this one represents the most significant grant of autonomy to individuals. Simply put, it was illegal five years ago for a Cuban citizen to quit a job and set up shop as a carpenter, food vendor, locksmith, restauranteur, or mechanic. Today it is legal, and over 150,000 Cubans have business licenses, and are working entrepreneurs. I'll hasten to add that this is not a small business economy of the kind that you or I would set up if we were writing the rules. Most are one-person businesses, prohibited from hiring employees.
Restaurants are limited to twelve seats.
For most, there is no wholesale supply market. Cuban officials say that future policy changes may address these issues, but it is not clear when these changes will be debated, or when they would take effect. I was in Cuba in March, following up on research I did on Cuba's small businesses in December 1996. This time, I was joined by Professor Joseph Scarpaci of Virginia Tech, and together we had the opportunity to interview 152 entrepreneurs. Many chafe at the limitations imposed on their business activity, and they openly complain.