News and Facts about Cuba

Learning To Run a Business

Learning To Run a Business / 14ymedio, Reinaldo Escobar
Posted on October 22, 2015

14ymedio, Reinaldo Escobar, Havana, 21 October 2015 — In the middle of
Los Sitios neighborhood, in the heart of Central Havana, the Jesuits
have a project focusing on the neediest sectors of the population. The
elegant façade of the place contrasts with the humble homes surrounding
it, where so many families face the drama of an alcoholic father, a
daughter working as a prostitute or a teenager in . The Loyola
Center programs are for them, and for those who face these problems daily.

This project of the Society of Jesus, which has other sites in
Cienfuegos, Camagüey and Santiago de Cuba, was inaugurated in January
2012 and since then has not stopped growing. In the mural at the
entrance of the imposing building, there are announcements for dance
classes for girls, support for single mothers, and computer and language

Of particular note is the “Basic Course for small business management”
that began its 13th session this September. Of the 120 people who
applied for admission, just over 80 came on the first day and now there
are fewer than 50. Both students and teachers believe that this course
is a success.

Darien Garcia who directs the courses is a graduate in accounting, age
38, with the rare virtue of believing in what he does in a country where
many people of his generation dream of emigrating, or simply stand
around on a corner to pass the time. This young man spent eight years
teaching at the of Havana and has now been at the Center for
two and a half years.

The teacher explains why more than half of those enrolled do not attend
the course. “This drop off is because, when they see that we don’t teach
any get rich quick tricks here, they leave the course.”

“Of all the current students, only 15% have businesses, another 10% are
on the verge of starting something, and the rest are State workers who
want to move to the private sector, single mothers who are housewives,
and others who are about to be.”

The basic course lasts two-and-a-half months and is divided into phases:
the introduction, which includes vision, mission, analysis of the
environment, business objectives and target market; a second phase with
all the tools of the process: accounting, finance, costs and management
of resources; and a third phase with legal aspects, taxes and more
emphasis on business ethics. The latter class is given by priests. In
addition, every Wednesday at 7:30 pm there are lectures on various
topics with free access.

“We take advantage of the opportunity to teach values in the solidarity
, like how to make your business grow without crushing others,
which is very complex. We have students with professional training, some
with university degrees, but also some with warped ethics, which we try
to address. It is very curious how some, when they confront a problem,
the first thing that comes to mind is to apply a fraudulent solution,
whether to resolve things ‘under the table’ or to deceive the consumer.
Here we pass on business ethics, an economic system of sustainable
development, that respects people and the environment.”

Adapting to current circumstances, this course also teaches how to
manage non-agricultural cooperatives and offers thematic courses such
administration and working in teams. For the coming year a course is
planned on the principles of service, another on financial
processes for private businesses in Cuba and the second round of
“managing cooperatives,” which includes a topic very popular in State
enterprises: internal control.

“In Cuba we have the idea that internal control is a method to keep
employees from stealing,” explains Darien Garcia. “But, in reality, its
objective is to improve a business, to make it more efficient and
effective.” In the case of cooperatives, it is not mandatory from a
legal point of view, but it is essential for the of the business.

In the previous 12 terms, with more than three courses per year, more
than 240 people have graduated. In 2016, there is a proposal to measure
the impact of the project on a society slowly evolving, changing
paradigms and lifestyles.

One of the most interesting dynamics happening is that at a Center that
teaches how to run a business, students are given tools based on
knowledge management and then they have to confront the known
limitations that still confront entrepreneurs.

“We are based on the principles of economic solidarity and
sustainability, that don’t limit the accumulation of wealth, but that
make the students understand that to achieve their personal well-being
they have to also achieve that of those around them. We work only within
what is legal, understanding that drugs, prostitution, weapons, are all
. We confront the problems of many who believe that they know
everything, and limit themselves to copying what has been successful.
Some go to the extreme of wanting to copy the successful, and if someone
puts the sofa in that position, they also want to put it the same way,”
explains professor Garcia.

Across the country there are now 440 registered non-agricultural
cooperatives, of which 400 are operating. On the other hand, the law
only allows for 211 self-employment occupations, some of which are
described so generically they can encompass any work, while others are
defined so rigidly that they leave little space. All of this is talked
about and discussed in the Loyola Center classrooms and hallways, where
the embryo of the new Cuban middle class may be being formed.

“Today, there are businesses, including cooperatives that even though
they don’t accumulate property, they accumulate wealth, for example in
construction,” explains Darien Garcia. “What we propose as a social
project of the Jesuits in Cuba is not to strengthen those who have the
most fruitful businesses and the higher economic and cultural levels,
but to reach those businesses in more difficult conditions, those that
are emerging. Our social mission is to be where the most deficient
sectors of society are.”

Source: Learning To Run a Business / 14ymedio, Reinaldo Escobar |
Translating Cuba –

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