Small businesses, in particular restaurants and cafes, have seen a surge in number since reforms to business law by President Raul Castro. The government had previously stopped issuing self-employment licenses in the mid to late 90s, not long after the state briefly loosened the red tape after the fall of the Soviet Union in 1991.

Fidel Castro’s brother became Cuba’s president in 2008 and has so far worked to give greater power over the retail industry to private citizens. Since coming into power, many entrepreneurs have been quick to open up small businesses on the island – this comes at a time when the Obama administration is looking to relax travel restrictions on travel for American citizens to Cuba.

It is reported that 2.5 million tourists travelled to Cuba last year, and analysts expect this figure to rise.

Across the nation, it is estimated that over 75,000 licenses for self-employment have been handed out since restrictions were lifted by President Castro in October of last year, declaring that Cuba’s future relies on private enterprise, and many citizens have noted a rise in bed & breakfasts, eateries and cafes. Figures in the city of Cienfuegos show that there were only 2 private restaurants in mid-2009, whereas now there are over 100. The premises of many of these businesses is within the owners’ own homes.

America has already begun plans to allow religious or study groups to travel to Cuba, including those with family on the island. The new ruling will come into affect within the next couple of weeks, no doubt spurring increased applications for private business licenses from Cuban citizens.

Reported by Sam Doving.

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