Cuba’s economy is a mixed provisional sector that is predominately made up of state-run businesses. The administration employs the vast majority of the labor force. The Cuban Communist Committee promoted the creation of cooperative societies and independent business ventures. The Cuban government granted access to personal property, free enterprise, and investments from abroad in the late 2010s.
Before 2018, international direct capital rose in a variety of Cuban industry sectors. On the HDI for 2019, Cuba was ranked 70th out of 189 nations, falling under the high economic progress class. The cost of housing and commuting is inexpensive. School, medicine, and food are all subsidized by the state for Cubans. Although entering the Cuban market may involve a protracted regulatory process, the outcome is worthwhile. This post offers the answers for anyone questioning how to enter the industry.
Market entry
The following are effective market entry techniques for international businesspeople:
- Discovering the top industries and niches
The top business niches in the nation must be understood before launching a new firm there or investing in its economy in any way. The most profitable business in Cuba are:
Produce Market
Establishing a produce store is a successful economic venture in Cuba. A produce store is a place where products like fruits and vegetables that are grown on farms are sold. This is one business concept in Cuba that is certain to succeed given the abundance of agricultural products in the country.
Packaged seasonings and herbs
The selling of packed seasonings and herbs is another fantastic economic venture in Cuba. In many Cuban cuisines, flavorings are frequently used as ingredients. This enterprise concept in Cuba is fantastic because there is a growing need for ingredients. The herbs and spices might be purchased in bulk, repackaged in smaller amounts, and sold retail.
Coastal jewelry
Seashells of all varieties are a plentiful resource in Cuba due to their stunning beaches. You could use them to create a tonne of gorgeous jewelry and market it to both locals and visitors. This career concept is fantastic because it doesn’t require a lot of capital. If you enjoy what you do and have distinctive and alluring designs for making seashell jewelry, you will undoubtedly make a tonne of money from it.
- Understanding the market access strategies
For large corporations hoping to gain from Cuba’s expanding economy, this step is extremely important. Make a thorough investigation of the business environment in the nation and use the following tactics to enter the market:
- Acquire a corporation
The ideal entry strategy in the nation might be to buy an existing local company. If a company directly competes with yours or controls a large share of the market, you can take over it. It is unquestionably the most complex because determining a company’s true market worth abroad requires completing extensive due research.
- Partnership
The partnership is practically necessary when accessing global markets. From an easy co-marketing contract to an elaborate strategic collaboration for manufacturing, there are many diverse approaches to partnership. Make sure to pick a local ally if you are unfamiliar with local culture and trends.
- Franchising
When an individual pay for the right to manage your company branch on your account, this is regarded as a franchise. For companies with well-known brands, franchising offers a way to generate revenue while using an indirect management approach.
- Outsourcing
Outsourcing is the practice of hiring a different company to manage a part of your organization’s business operations. Businesses that choose to outsource might cede some control over how their goods are marketed, but they might be able to offset this risk with the money they save on labor costs.
