“I wanted to make the marble cafeteria counter and here the state companies hardly work with it and when they do it is for hotels or official offices,” he told 14ymedio Walterio, owner of a cafeteria on La Rosa street, in the municipality of Cerro. The small business of this 68-year-old from Havana was closed throughout the pandemic and after the reopening “he needed fresh air, to change his previous image.”
“I hired a MSME that works granite, marble and also polishes the floors”, details Walterio. With the suggestive name of Capitel SRL, the small company took on the renovation of the cafeteria. “The price is high, for a family that wants to renovate his kitchen may be unpayable, but if the client has a business from which he makes money, like me, the accounts do add up”.
Although micro, small and medium-sized companies ( MSMEs) that is most talked about are those that sell food and cleaning products, in the field of hardware and construction, these private businesses have also been expanding and covering offers and services that the Cuban State had totally neglected. Despite its high prices, clients appreciate certain advantages of dealing with individuals who are not illegal.
“The good thing about hiring MSMEs is that, for any problem with the products or delivery times, I have a margin of claim”
“The good thing about hiring MSMEs is that, for any problem with the products or delivery times, I have a margin of claim because I am negotiating with a company that has a license, legal personality and must face its customers”, he considers. “Until now I have not I haven’t had any bad experiences, but it’s an advantage to know that you have some protection.
When Walterio opened his cafeteria in 1998, things were very different. “I had to hire carpenters and masons who didn’t even have a license for the bar, tables, chairs, and the kitchen work area.” That degree of informality cost him “several scams, losing a lot of money and tremendous spikes in blood pressure.” Now, he thinks that as the MSMEs also “they have to show their faces on social networks, because many have their web pages or Facebook accounts, what they least need is a client who makes a scandal for them on the internet because they did a bad job.”
“Another very important thing is that after paying for the work I commissioned, I received an invoice and I can declare that money as an investment in my cafeteria, which also influences the taxes I pay,” he adds. “There is no comparison with the State, even many of these MSMEs They accept payments from abroad and especially by Zelle in the United States, something that is very comfortable for those who, like me, have family there who can help with some investments”.
With the MSMEs better quality materials for renovation and construction have also arrived. “Porcelain tiles of all kinds and colors”, announces the small company Habana Estilo in several Facebook groups that promote the offers of MSMEs dedicated to the sale of materials, taps, tiles and veneers. If before, the client or the bricklayer had to resort to the shortage of official stores or immerse themselves in the black market, small private companies seem to have other, safer options.
Chucho and El Oriental have been working on renovating bathrooms and kitchens in Havana for years. Although they have never opted to be licensed and work “under the radar”, hence they prefer to use their aliases over their first names, when it comes to buying materials they prefer “the legal stuff”. Both have experienced many shocks. “You buy a bag of cement through an advertisement on the internet and when it arrives you realize that it is adulterated,” Chucho tells this newspaper.
“The worst thing is that sometimes you realize the counterfeit too late and the seller disappeared. There is no way to recover the money”
“The worst thing is that sometimes you realize the forgery too late and the seller disappeared. There is no way to recover the money,” he denounces. “Now we try to ensure that the most delicate materials, such as floor tiles, paints, special cements and bathroom fittings, come from a reliable source. MSMEs They’re a good option.”
“You pay more than on the black market but you sleep easier and the client has more options,” he says. “Hand in hand with MSMEs For example, Spanish porcelain tiles have entered Cuba, of very good quality, there are also complete plateaus of granite, marble, and I have even begun to see offers in quartz. The illegal does not have that because they are very heavy pieces that need specialized transportation,” he concludes.
“Before, all the countertops we made were cast and with tiles on top, now there are more options and I am sure that more types of materials will continue to arrive because the competition between them is going to force them to have a much broader catalogue,” he speculates. “I am about to see modular solutions arrive, with the kitchen furniture and the tabletop already included, just arrive and install. That is not yet here, but if anyone is going to bring it, it is those private companies.”
“I complain when I have to pay a 200-peso beer to a MSMEbut if a client asks me where it is better to buy a good sink or a mixer for the shower, I advise him to go with them, the other thing is to risk illegal ones or pay the State in MLC for poor quality and outdated design products “, admits Chucho.
“Even though I don’t have a license, I prefer to buy from licensed people because it is my reputation as a bricklayer that is at stake and my clientele moves with recommendations.”
Of the more than 8,000 MSMEs that have been registered on the island so far, at least 42 have to do with the sale of hardware and construction materials. Many of them sell in MLC and offer payment services from abroad and home delivery.
Thanks to the import permits and the ability to offer a variety of products, it seems that private businesses can be the alternative to the scarcity of state stores.
Thanks to import permits and the ability to offer a variety of products, it seems that private businesses can be the alternative to the scarcity of state stores. However, the high prices of the merchandise they offer, if inflation and low wages are considered, leave Cubans who do not have enough income with no alternative.
During a visit to a private hardware store in Havana, this newspaper was able to establish a comparison of the prices of the products on sale. A test screwdriver –which is used to detect whether current is flowing through a cable–, with a price of 0.99 euros in the Spanish market, in a MSME de la Isla costs twice as much: two euros or 400 pesos at the informal market exchange rate. Likewise, a set of three pliers with an insulating handle, priced at 8,900 pesos, in Madrid would cost only the equivalent of 5,000 pesos (25 euros). Finally, a Chinese-made Total brand drill is priced at 125 euros in Spain (about 25,000 pesos), while in Cuba it sells for 86,000 pesos.
Unlike hardware stores that offer tools and accessories such as screws, saws, sandpaper, hoses, or small or medium-sized power tools, many building materials stores only have a virtual presence, especially if they are dedicated to selling plumbing supplies. or large teams, since they usually work to order, importing only the products that customers request.
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