Question

Why or why not is Cuba a good locatipn for many products/services at this time?

Answer 1

1. Yes, there is a tech scene.

It is led by local grassroots organizers who are exceedingly tech savvy and committed to connecting with other communities. Havana held its much more momentum underway.

2. Comfortable desk chairs are really hard to find.

Yes, we’re serious. This is a top request from many Cuban developers...something that many of us take for granted. But if your career pays you to sit and be productive, you know how discomfort can break your flow.

3. Salaries and wages are exceedingly low.

The average Cuban earns $20-30 per month. Cuban developers earn much more (salaries can range) but are under $500 per month. One Cuban startup we spoke with employs 16 Cuban developers for a total company payroll of $5,000 USD per month.

4. Cuba is rife with design talent and creative ideas.

Traditionally, art has been Cuba’s best industry to earn a good income and travel abroad. Cuban artists, musicians and theater troupes have had easier paths to acquire travel visas and visit other countries. As a result, many have focused their time on creative efforts. That spills over into other parts of the Cuban economy and offers promise to its future role in technology innovation.

5. Businesses, as we recognize them in the U.S., are not legal entities.

Cubans work around this regulatory restriction by working together as "contractors" on a startup idea. They can be located in the same workspace, work under a single brand and collaborate as if they were a company, but they do not have legal standing as a corporate entity.

6. ‘Cooperatives’ are the best bet for a quasi-corporate legal structure.

Cooperatives are worker-owned business structures that have legal standing in Cuba. They also offer significant tax incentives over being self-employed. They can range from farmers to beauty providers and auto repairs shops to business consultants. Traditionally an agriculture-only structure, cooperative regulations have been easing since 2011to include more industries and gradually decentralize Cuba’s economy.

7. Cooperatives do NOT yet apply to programmers.

Despite being one of the most powerful skill sets for economic development across the world, a computer programming cooperative has not yet been approved in Cuba. There is ample hope that the cooperative regulatory framework will be broadened to encompass the tech sector and a number of other professional service industries, like lawyers and engineers.

8. A small investment can have a huge impact.

The combination of very low wages, a highly educated population and societal safety nets mean that even tiny "investments" (aka "personal loans") can have massive impact. Because of government policies around free education, free healthcare and more...any size of investment can power a startup to operate in an exceptionally capital efficient way. This is truer in Cuba than in any other place in Latin America or the Caribbean.