Entrepreneur Claims Political Barriers Are the Biggest Challenge for Private Businesses in Cuba

Cuban entrepreneur Yulieta Hernández Díaz, who leads the private micro, small, and medium enterprise (MSME) Pilares Construcciones, has stated that the primary challenge facing private businesses in Cuba is political in nature. This challenge is closely linked to a lack of stability, legal security, and trust within the island nation.

In a critique posted on Facebook, the engineer and architect responded to the decision by the Office of Foreign Assets Control (OFAC) effective September 30, 2026, to revoke the authorization that allowed banks under U.S. jurisdiction to open and maintain accounts for independent Cuban private entrepreneurs. This provision had been approved by the Biden administration in May 2024.

Unless there is another applicable authorization, affected funds and accounts must be frozen, and unblocking them requires a specific license from OFAC.

Hernández Díaz clarified that the measure does not impact her directly, as she does not hold bank accounts in the United States and is not personally acquainted with Cuban entrepreneurs who do.

However, she noted that the impact could be significant if those who used these accounts handle a considerable portion of private wholesale trade in Cuba or if a substantial amount of products arriving on the island depend on U.S. companies, banks, or shipping lines, lacking sufficient alternatives in other markets. According to Hernández Díaz, financial challenges for Cuban private entrepreneurs predate this measure.

Banking Obstacles for Cuban Entrepreneurs

"One of the main problems we face as Cuban private entrepreneurs is gaining access to reliable banking services. Cuban banks do not provide the trust we need to operate effectively, and foreign banks, in general, are unwilling to take on the so-called 'Cuba risk,'" she explained.

Hernández Díaz stated that since 2021, she has unsuccessfully attempted to open accounts in foreign banks, even amid the relaxations introduced by the Biden administration.

This financial exclusion, she warned, ultimately affects consumers' wallets.

"When a financial transaction cannot be carried out simply, securely, and directly, intermediaries, fees, currency conversions, delays, and other costs arise. Ultimately, these financial expenses become part of the price of products and services," she pointed out.

Regulatory Instability and Consumer Impact

Her remarks come amid the challenges of banking reforms pushed by the Cuban government, in a landscape marked by issues accessing cash, informal operations, and growing distrust towards the national banking system.

The entrepreneur also criticized the regulatory instability in Cuba, describing it as "legislative schizophrenia" characterized by "rules that change, are modified, suspended, or reappear under different names."

"The uncertainty and lack of trust that we private businesses in Cuba face have both internal and external causes," she stated.

For Hernández Díaz, "we need stability. We need security. We need trust. We need clear rules that do not depend on discretionary decisions and that can be maintained over time," she asserted.

She concluded with a strong statement: "The biggest challenge that private businesses in Cuba face is political. As I often say: without political transformations, there will be no viable and certainly not sustainable economic or social transformations."

The controversy over the role of MSMEs has intensified after Miguel Díaz-Canel declared that "the non-state sector is ours," while Foreign Minister Bruno Rodríguez had accused Washington just days earlier of harming that very sector.

The official response to the new OFAC measures has thus reignited the debate over the real autonomy of MSMEs and their relationship with the Cuban state.