From Engineer to Entrepreneur: The Story of Yulieta Hernández Díaz and Building with Purpose

In Cuba, entrepreneurship is less a choice than a vital response to daily survival. Beyond the numbers and statistics, stories emerge that reveal the courage, ingenuity, and determination fueling this spirit.

One such story belongs to Yulieta Hernández Díaz — civil engineer, mother, and Cuban. Her journey is a testament to resilience and the transformative power of commitment, both personal and professional.

Her professional journey began in the State sector, where she dedicated over a decade to practicing engineering—a vocation that continues to define her today.

Yet, economic instability compelled her to seek alternative paths. From teaching to short-term contracts with cooperatives, each step not only revealed the challenges of her environment but also her ability to reinvent herself without compromising her core principles.

Today, Yulieta leads πlares Construcciones SLR, a private microenterprise she founded in 2018 and that she formalized in 2021 as a small and medium sized enterprise (“MIPYME”, by its acronym in Spanish).

Under her leadership, the company has not only solidified its position in the construction sector but also embraced a rare social mission: promoting the inclusion of women in traditionally male-dominated trades, supporting the training of young professionals, and providing technical assistance to emerging economic actors.

This conversation offers a glimpse into the perspective of a woman who has built her life and business upon the pillars of consistency, civic duty, and respect.  She is a powerful reminder that true progress begins when one embarks on a project not merely to grow, but to build with consequence and purpose.

Profile and Entrepreneurial Path

What sparked your entrepreneurial journey in Cuba?

My journey into entrepreneurship was born out of necessity rather than choice. For ten years, I worked in the public sector as an engineer—a job I truly loved.

Yet, my salary was insufficient to support myself or provide stability for my family. To improve my situation, I took on a second job as a lecturer at the Faculty of Civil Engineering at the José Antonio Echeverría Technological University of Havana. Unfortunately, the extra pay barely covered the additional expenses it entailed.

At one point, I even considered working night shifts in private bars and cafés, as I sought ways to earn additional income while keeping the engineering job I loved.

Then, a friend told me about an opening in a construction cooperative—an opportunity more aligned with my training in engineering. I went for the interview and was hired.

However, after just three months, my contract was abruptly canceled due to new government restrictions preventing the growth of non-agricultural cooperatives.

Despite a surge in demand from the construction boom linked to Havana’s 500th Anniversary celebrations, the regulations prohibited the permanent incorporation of new members to existing construction cooperatives. My contract had been only temporary.

Once again, I faced the challenge of supporting my family without a steady income. Determined to find a solution, I set out to start my own cooperative.

I then learned that creating new non-agricultural cooperatives was not allowed in Cuba at the time. As a result, I registered as a “self-employed worker” (“TCP”, by its Spanish acronym).

What type of business do you run, and how has it evolved over the years?

I lead πlares Construcciones, SRL, a limited liability company specializing in the construction sector. Founded in 2018, we initially registered for the TCP permit.

Today, πlares Construcciones offers a broad range of services—including construction, maintenance, repairs, restoration, and remodeling. We also provide engineering, architecture, and design solutions, taking on turnkey projects that meet the diverse needs of our clients.

We complement the above with free technical support for new businesses wishing to estimate costs or conduct feasibility studies.

In addition, we develop training programs ranging from student internships to children’s workshops and social impact projects such as Women Masons, recontextualizing the bohío (traditional rural dwelling), and bio-construction using eco-friendly materials.

Over time, and in response to regulatory changes, the business evolved, becoming formally established in 2021 as a Cuban private MIPYME, consolidating its presence in the market and adapting to the dynamics of the sector.

However, the transition to MIPYME status was not as favorable as we had hoped. As a TCP (self-employed worker) we used to undertake large-scale construction projects, mainly for public enterprises in the industrial sector.

During those years, we built up a solid base of technical experience, but from 2021 onward, as a private company, the situation became unsustainable: we accumulated over 10 million Cuban pesos in accounts receivable, facing a severe chain of non-payments.

Moreover, the lack of liquidity in the banking system and our suppliers’ demand for cash payments made it unfeasible to continue operating under that model.

We then made a key strategic decision: to stop contracting with State companies and focus instead on the residential sector and emerging private businesses, which were growing thanks to changes in the regulatory framework.

This transition meant a transformation in the type of projects we took on. We went from building plants and complex industrial works to home renovations and small repairs. Although this reduced the technical scale of our projects, we gained stability, liquidity, and operational autonomy.

It was a difficult but deeply sound decision. Today it is the foundation of πlares sustainability and strengthens our commitment to our immediate environment and to the country’s real productive actors.

How is payment made for completed work? What motivates your workers?

At πlares, we have moved away from paying per completed job. Instead, we employ a monthly compensation system based on a mixed model tailored to the realities of each operational area.

For direct work capacities, employees are paid monthly according to their production, allowing us to recognize tangible effort on each project while maintaining job stability. In indirect areas, salaries were traditionally fixed and monthly; but we are now introducing a mixed model there as well: guaranteeing a minimum base salary complemented by a percentage tied to the company’s overall performance.

This compensation approach strives to balance security with motivation. We see incentives not merely as financial rewards but as essential elements of an organizational culture that values transparency, participation, and shared impact.

That is why we also emphasize internal training programs, peer-to-peer mentoring, and active engagement in social initiatives—creating spaces where every team member can contribute personal expertise toward a collective vision of ethical and sustainable construction.

Structural Conditions for Entrepreneurship in Cuba

How have recent regulations on MIPYMES, self-employment, and rules on private imports affected you?

Since 2022, the government’s tone has shifted from a relatively supportive stance to a more adversarial narrative—reflected both in official media and inconsistent legislation—resulting in a growing loss of trust, security, and stability within the private sector.

One early sign of this uncertainty was the suspension of approvals by the Ministry of Economy and Planning of Cuba for commercial business activity with a social purpose. Although the law clearly permitted this activity, applications began to be rejected without clear explanations, fueling deep distrust among entrepreneurs. Simultaneously, the few companies already authorized have developed monopolies, reducing competition and driving up prices and inflation.

The crisis intensified with cash shortages in banks and the onset of “bancarización,” (requiring cash to be deposited in banks and commercial transactions to be carried out through the banks) disrupting private business operations and sparking further price surges. Concurrently, a sharp devaluation of the official exchange rate—from 24 to 120 CUP (Cuban pesos) per USD—expanded the informal foreign exchange market, adding inflationary pressures and escalating costs for the private sector.

In 2024, newly-adopted regulatory frameworks significantly reversed prior regulations, creating further uncertainty. Since 2023, the approval process for new private businesses slowed dramatically, first reflected in slowing permit processing, then officially by government regulation transferring responsibility for approvals of new permits from the Ministry of Economy and Planning of Cuba to municipal governments, which almost ceased reviewing applications.

This shift directly affected market competition by limiting supply and driving prices upward. To date, almost no new private businesses receive approval anywhere in the country.

Resolution 56 of 2024, issued by MINCIN (“Ministry of Commerce and Investment”), further restricted the private sector by banning wholesale commercial activity except by agricultural producers. Although its implementation has been postponed, its very existence has further destabilized the market.

Moreover, new foreign investment regulations restrict the use of foreign currency accounts outside of Cuba and require instead that Cuban business create new local bank accounts.  This has further weakened the country’s ability to attract foreign capital, reduced the private sector’s client base, cut supply, raised prices, and spurred inflation.

In short, the web of restrictions and constant regulatory changes has created an environment of uncertainty that undermines entrepreneurs’ confidence. The lack of stability drives more Cubans to dismiss the idea of investing in their country and, in many cases, to emigrate in search of greater opportunities.

What role does access to foreign currency (MLC, USD, EUR) and the exchange rate situation play in the sustainability of your business?

The absence of an official foreign exchange market in Cuba creates a chaotic environment for both the national economy and the sustainability of private businesses.

Banks do not sell foreign currency, and they buy it at a government fixed rate that is far below the informal market value. This forces entrepreneurs to operate in a fragmented financial environment, where maintaining transparent accounting is extremely difficult due to the coexistence of multiple exchange rates—both formal and informal.

This uncertainty makes it impossible to close financial cycles accurately, driving up operating costs. In particular, the need to de-bank in Cuba and re-bank abroad increases financial costs by an estimated 10–15%, which translates into higher overall prices and, ultimately, greater inflation.

In the construction sector—and virtually every other sector—access to materials, supplies, tools, protective equipment, machinery, fuel, and now even telecommunications is entirely dollarized. With such limited domestic production, imports are unavoidable, which makes it extremely difficult to sell goods and services in the national currency.

Operating in a context where acquisition costs are in foreign currency but sales must be made in CUP poses a constant challenge to the financial sustainability of private businesses in Cuba.

What institutional or administrative obstacles do you consider most critical in your daily experience as an entrepreneur?

The greatest institutional obstacle facing entrepreneurship in Cuba is “legislative schizophrenia”, characterized by abrupt changes in both the rhetoric and the application of regulations, which generate “distrust, insecurity, and a lack of stability.”

This uncertainty limits private investment and discourages Cubans who want to build businesses in their country, fueling migration as an alternative.

From a structural perspective, the problem lies in the preference for “impoverishment over enrichment”, reflecting a deep fear of money and its potential to generate autonomy and leadership independent of government institutions.

Historically, in Cuba, leadership outside of the established institutions has been eliminated, minimized, or diluted, reinforcing the idea that the State seeks at all costs to “maintain its power structure intact.”

Strategies, Resilience, and Innovation

What creative or informal mechanisms have you developed to adapt to scarcity or economic instability? How do you secure access to supplies, equipment, logistics, or connectivity services?

For every problem, Cubans find an alternative—and the same goes for business leaders in the country. Personally, what has worked best for me is not tackling obstacles head-on, but finding ways to go around them or overcome them through alternative routes.

Along the way, there will always be stones in the path—in Cuba as elsewhere—but the key is to see them as potential opportunities rather than insurmountable problems. Jump over the stone or go around it.

Another key factor has been building a strong team that truly functions as a team. Problem-solving is not an individual task; it is a collective process. Moreover, it is valuable to have solid networks of colleagues in the construction sector, which has allowed me to generate collaborative solutions and keep the business running in an environment of uncertainty.

There is no single solution to securing access to supplies, equipment, logistics services, and connectivity in Cuba; the process requires a mix of adaptive strategies. One approach has been to identify and make use of the few domestic suppliers available, even if their offerings are limited.

At the same time, we’ve built relationships with colleagues who import goods in foreign currency, since they have managed to close their financial cycles. This allows us to keep our operations running in the national currency and optimize costs within existing restrictions.

Another strategy has been to implement hybrid service models in which our company locates the supplies, equipment, materials, tools, and protective gear, but the client pays for them directly in foreign currency.

In this way, we act solely as a commercial intermediary in acquiring these resources, which enables us to keep the rest of our services in the national currency and maintain sustainable operations.

Political, Social, and Cultural Environment

Do you feel the Cuban government’s rhetoric and actions are consistent with genuine support for entrepreneurship?

In 2021, the regulatory framework allowed the creation of Cuban private companies. This was a disruptive and positive change, moving from a system based on a very limited list of permitted activities to one based on a list of prohibited activities, thus considerably expanding business opportunities. Still, I believe that the list of prohibited activities should be further limited.

The ability to establish a company with legal personality marked a turning point. Until then, entrepreneurship could only be pursued as self-employment (TCP) by natural persons, or through Non-Agricultural Cooperatives (CNA) as cooperative property.

The new regulations created hope and expectations in the entrepreneurial ecosystem—so much so that many Cubans from the diaspora returned to the country to invest.

However, this period of optimism was short-lived. By late 2022, the government’s tone shifted, regulations began to change, and the “legislative schizophrenia” that hampers private-sector growth set in. This triggered a slowdown, undermining entrepreneurs’ confidence and expectations.

The uncertainty led many to close their businesses and emigrate, while others kept their businesses in Cuba but relocated abroad.

How does public perception (positive or negative) of the private sector affect the development of your business?

There is a negative public perception of entrepreneurship in Cuba—both inside and outside the country.

Domestically, the private sector is often used as a scapegoat. The government’s rhetoric, reinforced by national media, has shaped public opinion to blame private businesses for inflation, cash shortages in banks and ATMs, rising prices, and even corruption and tax evasion.

Yet this narrative distorts reality, as the true root of these problems lies not in the private sector but in the structural, systemic polycrisis affecting the Cuban economy.

Private entrepreneurs are not only not the cause of the problem—they are deeply affected by it. Instead of being seen as allies in revitalizing the economy, they have been turned into scapegoats by the official discourse.

Abroad there is also skepticism about the independence of Cuba’s private sector. Outside the island, many perceive Cuban entrepreneurs as not truly independent, suspecting that private companies are part of a “government front.”

It is true that a small percentage of the private sector serves government interests directly, but this is only a small part of the picture.

Today there are over 11,000 private businesses in Cuba, many led by entrepreneurs working under adverse conditions and without direct ties to the State.

The lack of access to markets, financing, and global platforms prevents real growth of the private sector—reinforcing the perception that there is no solid business ecosystem on the island.

What institutional or regulatory changes do you consider essential to strengthen Cuba’s entrepreneurial fabric?

If I had to choose only one, it would be legal certainty and the elimination of legislative schizophrenia. Regulatory uncertainty not only slows business growth but also discourages investment and long-term planning.

Without clear rules that are consistently applied, entrepreneurship remains trapped in a cycle of progress and regression—undermining trust and limiting the sustainable development of the private sector.

Such a change would allow businesses to operate with greater predictability, creating an environment where innovation and growth are viable instead of being constantly blocked by abrupt changes in legislation or government rhetoric.

Impact of U.S. Policies

How do you assess the impact of the current U.S. administration’s policy on your business? And what specific changes have you experienced under U.S. administrations in the past decade or recent years?

The current U.S. administration’s policy has a negative impact on my business—and on me as a citizen. However, as both citizens and Cuban entrepreneurs, we have learned to live with the constant hostility in U.S.–Cuba relations. This is nothing new; it is a historical pattern that has shaped the lives of several generations.

I have always believed that what we in Cuba call the “internal blockade” affects us more than U.S. economic sanctions. While these restrictions do create obstacles, it is the structural limitations inside the country that impose the greatest barriers to entrepreneurial development.

During the Obama era, there was significant openness toward Cuban private businesses, which stimulated the economy and increased capital circulation. Although my business is not directly tied to tourism, the growth of tourism and remittances boosted solvent demand. Indirectly, many businesses took advantage of this boom to invest in construction and expansion—an opportunity we seized.

By contrast, the Biden administration has had little real impact on Cuban entrepreneurship. Measures were announced, such as allowing Cuban private businesses to open U.S. bank accounts, but in practice, these have not been viable.

As far as I know, no Cuban entrepreneur has successfully opened an account in the U.S. Exceptions from the embargo for Cuban private businesses were also announced, but without effective government implementation.

In general, when a U.S. administration implements a measure that benefits private businesses in Cuba, it almost always happens at the end of its term—limiting its ability to take root, since the next administration usually changes its stance toward the Cuban private sector.

What role could an organic opening of the country to entrepreneurs from its diaspora, along with a more fluid bilateral relationship play in the growth of entrepreneurship in Cuba?

For me, it is essential. I cannot imagine rebuilding the Cuban nation without the Cuban diaspora. Excluding them has been a historic mistake that both Cuban citizens and the government have made. Emigrants exist, their numbers are growing daily, and they are as Cuban as those of us who live on the island. Overcoming division and building lasting ties based on recognizing differences and mutual respect is essential for rebuilding ourselves as a nation.

For Cuba, its diaspora presents enormous potential. Its potential contributions should not be reduced solely to its sending remittances, as the Cuban government has often framed the diaspora’s potential.  The Cuban diaspora’s potential contribution goes far beyond being a source of revenue for the country.

In the business and entrepreneurial sphere, the diaspora’s role is fundamental—just as it is in the professional sphere. Emigrants have learned, grown, and developed their skills in numerous countries, including the United States, integrating into and succeeding in highly competitive markets.

Meanwhile, Cuba still suffers from a severe lack of business training—there are no business schools in its universities—as well as from an economy closed off from the world.

The diaspora can not only be a source of financing to help rebuild the country from the current deep structural and systemic polycrisis, but also serve as a key channel for exchanging business and market knowledge.

As an engineer in the construction sector, I see enormous opportunities for collaborative growth with emigrated engineers and architects who have integrated into markets operating under very different standards from those we have in Cuba today.

In Cuba, we are decades behind the advances seen in almost every sector worldwide; and without real integration with our diaspora, closing that gap will be even harder.

More importantly, it is my conviction: they are as Cuban as those of us living in Cuba—and they should have the right to help build our nation too.

See also the interview series, "Entrepreneurship, from Cuba and its diaspora: 3x3 stories"

From Encouraging Entrepreneurship in Cuba to Forging a New Path as an Entrepreneur of the Cuban Diaspora