Entrepreneurs embrace new possibilities on doing business with Cuba

Entrepreneurs embrace new possibilities on doing business with Cuba
SUNDAY, MARCH 1, 2015, 10:57 AM
BY HUGH R. MORLEY
STAFF WRITER | THE RECORD

One businessman was interested in the commercial possibilities of
helping Cubans renovate their homes.

Another had put together a $2 million investment fund, and was looking
for opportunities in the Caribbean country.

A third attendee, a Cuban-American, had no business plan, but he came to
see what the changes might mean for his native land.

The three reflected the diverse interests of about 100 people who
attended a lively forum Thursday night in Lyndhurst on doing business
with Cuba. The event sought to focus on opportunities in the communist
nation in the future, but it sometimes got tangled up in the past.

Related: N.J. business look to Cuba for a market, find difficulties

The event, organized by the Statewide Hispanic Chamber of Commerce of
New Jersey, was designed to provide information about the business
terrain in Cuba as a result of President Obama's executive orders in
December aimed at normalizing U.S.-Cuba relations. The orders took
effect in January.

Concerns ranged from caution at the possible risks to a desire to jump
in quickly. And some inquiries appeared to be shaped by Cuba's turbulent
history with the U.S. — especially after two representatives of the
Cuban government spoke of their belief in Obama's plan, and how it could
help the people in both countries.

A matter of risk

"There are laws in this country that protect me and protect my
investment," said Jose Sabater of Elizabeth. The Cuban-American said he
came to the forum to find out the effect of the changes on his native
country.

"What kind of guarantees does the Cuban government have in place" to
protect investments in that country? Sabater asked.

Marco A. Gonzalez, a Paramus attorney who gave a presentation on what
companies can and can't do under Obama's rules, replied that he has
helped clients do business in Cuba, and other countries, for years, and
hasn't found clients to be at greater risk of losing their investment in
Cuba than anywhere else.

Asked a similar question earlier, one of the Cuban government
representatives, Ovidio Roque, dismissed such concerns, and said his
country is very keen on making its relationship with the U.S. work, and
it wants to foster entrepreneurs and an independent business sector.

"If you ask an entrepreneur what is the main obstacle to a business in
Cuba, it's not the Cuban government," it's the difficulty of getting
materials to run a business, he said. He drew a laugh from the audience
when he said independent restaurants complain more that they can't get
Adobo Goya — a seasoning popular with Latinos that's made by the
Secaucus-based food manufacturer.

Cuba as a 'hybrid'

Frank Argote-Freyre, an assistant professor in Latin American history at
Kean University, predicted that Cuba would end up as a "hybrid" of
capitalism and communism, adding, "I think we will see economic reforms."

Some attendees were clearly motivated by the prospect of early entry
into a developing market with which they had personal ties.

Bill Borras, a general building contractor from Jackson, whose father
left Cuba in 1937, said he believed money could be made fixing up
dilapidated homes, or buying and selling them.

"I think it's going to be lucrative, not only in my industry," Borras
said, adding that whatever the U.S. was going to achieve with the
embargo had been achieved.

"It's time," he said of Obama's initiative. "I don't think we are going
to be getting anything more out of the embargo."

Mario Perez, a forensic accountant from Warren Township, said he came to
see if the business environment is ripe for him to invest a $2 million
venture fund he has put together.

"It's important to start peeling the onion, and really investigate
what's going on," said Perez, whose parents left Cuba in the 1950s.
"It's the initial stages of doing proper due diligence in our country."

He said he has no specific investments in mind, but he suggested that
putting money into real estate, a resort, or imports and exports could
be possible.

U.S. action urged

Some attendees, however, felt that U.S. businesses may need to move
quickly to seize a share of the market, a point underlined by the Cuban
representatives, who said investors in countries that don't have laws
restricting business with Cuba are already backing projects there.

"I don't think we have missed the boat," said Freddy Rambay, the New
Jersey representative for MAP Communications, a Virginia call center
company. "But we need to take steps to ensure we have our feet in the
water before it's too late."

Source: Entrepreneurs embrace new possibilities on doing business with
Cuba - News - NorthJersey.com -
http://www.northjersey.com/news/entrepreneurs-embrace-new-possibilities-on-doing-business-with-cuba-1.1280405?page=all