Holdouts of communism to meet some pioneers of capitalism. The doors for the first time are wide open. Im definitely a businessman. I love doing this. Do you think youre gonna be in cuba for the rest of your life . Yes. Because cuba is changing very fast. The obstacles are daunting. This clothing designer has to buy fabric on the black market. Ooh this Restaurant Owner isnt allowed any more than 50 seats. The state says she isnt allowed to expand her business. You cannot have two stands . No. This sucks. Meet cubas new business class, surviving and thriving under one of the most oppressive regimes in the world. [ music continues ] [ flamenco guitar plays ] i had barely set foot on cuban soil when i saw how the new Business Laws are changing lives. Armando lee rolled up in a 61yearold chevy a typical havana taxi. How you doing, my man . Hello, my friend. Im marcus. Marcus. My name is armando. Nice to meet you. Armando . Yeah. Nice to meet you, brother. Like most cubans, armando was living on a government wage worth about 25 a month. Now he makes that in a single day, thanks to the taxi license he got under the new law. This is a good business. And you can make good money doing this . I can save a little bit for my own business. The best job is to do your own company, a small business. Your own company. Yeah, exactly. With his newfound cash and a degree in computer engineering, armando hopes to launch his own startup. If you have a business and we become friends, can i invest in your company if i live in the United States . Yeah, you give me the money and thats it. Well, you have to pay me interest. Okay, we can do it. A lot of interest. We find a lawyer, and we can do a contract, yeah . Armando made me feel welcome. Of course, i cant invest in a cuban business yet. Thats illegal because of the u. S. Embargo imposed after Fidel Castros communist revolution. Since 1962, cuba has been cut off from the goods and services an economy needs to survive. Despite free healthcare, housing, and higher education, many are struggling. [ speaking spanish ] how you doing . Todo bien. Mucho guim jorge. Marcus. But Walking Around the old city, i saw a place full of life, energized by the changes. [ men singing, latin music plays ] desperate to boost the failing economy. This is a cool bag. The government has loosened their reins on private enterprise. So everythings made in cuba . Yes. Instead of working for the state, thousands of cubans are now working for themselves. Very beautiful. [ uptempo latin music plays ] i found them everywhere, even here a sleepy street in a residential neighborhood in this tiny rented garage. Welcome to burner brothers bakery, run by a brother and a sister, tony and Sandra Camacho rodriguez. Good morning. Good morning. Im marcus. So, the name is burner brothers. Yes. Why not burner sisters . Because im a guy. But shes the boss. No, shes not. Yes, i am. Ware the bosses. Okay. All right. Come in. Thank you. This is unbelievable. Its small. Yes. They started selling cookies out of their house in 2013. Now theyve really taken off, with a retail space, several employees, and a catering service. [ speaking spanish ] can i try something . Of course. I want to buy a box, a big box. Can i have a guava and cafe . What did you do before this . Im a dentist. Youre a dentist. Yes. And youre selling sugar. Yes. [ laughter ] how much did that pay . They pay me 1,000 pesos a month. Around. Thats about 50 a month for a dentist. And you make more money selling doughnuts . Here . Yes. In one day . Not in one day. Pretty close. Well discuss about it later. [ both laugh ] is it difficult to talk with the cameras because you worry about people seeing it . Yep. Tony and sandra are clearly doing well, but this is cuba, and you can see the anxiety set in when i asked about money. Like others i would meet, they didnt want to say too much. And as a business owner, i respect that. [ uptempo folk music plays ] but their steady flow of traffic told me what i wanted to know. Id guess they were making at least 100 a day amazing when you consider that most cubans live off 300year. Tony and sandras bakery may be pulling in 35,000. You look like you like it. I can only say off the record. [ laughs ] [ chuckles ] people probably think, oh, this is just a bakery. No. It happens to be thriving entrepreneurship in the face of very strong head winds of regulation. They werent taught this. They didnt go to school for this. Shes a dentist, hes an engineer. Can i see the kitchen . Yes, of course. Okay. [ uptempo latin music plays ] this is big. Whats in here . Thats an oven. This is an oven . Yes. From 19. Probably 1920s. And it works perfect . Yeah. The workers i met in the kitchen two engineers and a lawyer. Like their bosses, they make more here than they did at their government jobs. Where does everybody come from . Where are they trained . We trained them all. So, they came here looking for a job . Yeah. You took their engineering clothes off, and you made them chefs . Yeah. And you taught them step by step by step. What they got to do. Everybody likes sugar. Yeah. Right . Everybody likes chocolate, too. But on the day i visited, there wasnt any. Why dont you have the ingredients . Money . Both no. Because they are not available right now. Chocolates not available . The exact kind of chocolate we use, dark chocolate, like more than 40 of solids. And so its not available . Right now its not. You cannot find it at any store . Any store. Id like to see where you buy all your products. Can we go there . [ uptempo music plays ] so, everything here is locals. Yes. What ingredients would you come here for . Oh, here we buy lemons, we buy carrots, guava, pineapples stuff like that. Wholesale as we know it doesnt exist in cuba. Holy cow. Theres no costco or walmart, just whatever is available from private vendors at the local market. This is papaya. Papaya . This big . Its very sweet. Humongous. You wont find eggs or milk here. Only Government Stores are allowed to sell those, and theyre often in short supply. When it comes to running a business, there are obstacles everywhere. For starters, you can only work in one of 201 governmentapproved professions. Thats right, theres a list. You can be an accountant, a plumber, a palmtree trimmer, and, of course, a baker. I love the feel of the whole place. If you wanted to open up five of these all around havana, can you do that . Can you have five . Theres a law against that. One person. One license . One license. ¿solamente . Yes. So you can franchise . Uh, franchise, no. Franchise is a big enterprise. You know that. The burner brothers license is in sandras name. They can only open a second bakery if tony applies for a license in his name. And, so, im fascinated by the fact that you have become students of the rules. Yep, we have. I think whats unfortunate is that you have to spend time studying the rules as opposed to spending time growing the business. But it makes it unique, you know . The reason why i see an opportunity here, its because it isnt easy. If it were easy you know, you can get anything you want, you can get a license anytime you want, you can open as many businesses as you want you know how many people would have opened a bakery . Tony and sandra are smart enough to know that they could leave and they could take their trade skills of baking and merchandising and advertising anywhere, but they see that the window of opportunity and the ability to be big in the future is greater here because they know that the Competitive Landscape is not as competitive. [ uptempo music plays ] coming up, tony and sandra have big plans. 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[ uptempo music plays ] [ uptempo latin music plays ] forget what you think you know about cuba. Forget the old cars, the cigars, the che guevara souvenirs. I saw a new cuba with extraordinary talent in the most unexpected places. People like kirenia riguera. Hi. How are you . Im marcus. [ chuckles ] she was shy about her english, so i brought along a friend to help. [ both conversing in spanish ] so, do your customers come back through here . [ speaking spanish ] translator yes, but most of my clients arent fat. [ laughter ] welcome to my house. This is where kirenia lives and makes her living. [ speaking spanish ] this is your office . Uhhuh. I squeezed into a workshop barely bigger than a closet, with sewing machines from another time. [ speaking spanish ] translator to everyone else, it may look very small. But to me, its really big. Whatever i own today is because of my sacrifices. [ [ uptempo folk music plays ] kirenia is a seamstress and one of havanas top wardrobe designers for tv and film. Shes done so well she owns the business and this house. In cuba, thats huge. This is linen . Linen. Cien por ciento linen. Shes called the queen of the guayabera, a traditional cuban shirt. Its her specialty. How much do you sell them for . Sesenta. She told me she charges 60 a shirt. Material and labor costs 30. It takes a day and a half to finish each one. This is made one at a time. [ speaking spanish ] translator one by one. I think we should charge more. Si. Lo que. Translator yes, i know. But in cuba, it will be a hard sell. In a good month, kirenia sells eight shirts, making 240 bucks in profit almost ten times the average monthly salary here. So, where do you get the fabric . [ laughter ] [ speaking spanish ] translator thats a loaded question. Loaded because, like many cubans, shes forced to buy from el mercado negro. Why is that in the black market . [ speaking spanish ] translator it is not in the stores. [ midtempo latin music plays ] i want my own shirt. Can you make me a shirt . [ speaking spanish ] translator it will be my pleasure. Luckily, there was enough linen left for me. This is my shirt. It takes a lot of measuring. I need a little extra cushion. Just make sure you keep plenty of room. [ laughs ] no problema. This is probably a 98 shirt, retail. In the u. S. , that is. To raise her prices in cuba, kirenia needs a store, but thats tough here. The government controls most of the clothing industry. [ speaking spanish ] translator when you start to get confident, obstacles and limitations come up. You cannot do this, or you can do only this much. And who tells you you cant . Translator im not sure. I guess it comes from the government. Thats the thing here. No matter how hard you work, you can only go so far. But she refuses to give up. Come on in. How are you . And then i met the reason why her 5yearold daughter, camilla. She works very hard, doesnt she . [ speaking spanish ] translator very much. And im very proud of her. I know shes special. My angel. Your angel. [ speaks indistinctly ] and that gives you tears of joy. Against the odds, kirenia made a better life for them both. But it may not be enough to keep them in cuba. Does it scare you . Por supuesto. Translator of course. It was never my dream to leave my country. I want my daughter to grow up where i did. But . Translator if i want a Better Future for her, i have to consider the possibility that she go elsewhere. And that really makes me sad because i love my country. [ birds chirping ] i can see the day coming when shell have to make a choice. And it wont be an easy one. Dale la manito ynice to meet you. Nice to meet you. Nice to meet you. You have a wonderful mother. Say thank you. Thank you. Gracias. [ laughter ] gracias. Gracias. Say thank you. Un besito . Ill come pick up my shirt in a couple of days, okay . Ah this is great i got a hug, too [ laughs ] [ slow folk music plays ] after leaving kirenia and her daughter, i took a walk up the street. Hola. I wondered if people here are running out of patience. As information becomes more available to people and they see what their options are, people are gonna start to go after it not because they want wealth or they want fame. Because they want something different. They want something brighter. It feels like you took a picture in 1965 and nothing happened. Its crazy. How you doing, buddy . Okay, im gonna show you a game. Put your hands here. You ready . The kids in the neighborhood didnt seem to have a care in the world. Play . But their future looks bleak unless the cuban economy improves. [ shouting indistinctly ] i turned to someone whos been watching the situation closely. This was main street of old havana. Ted henken is a professor of latin american studies at Baruch College in new york. ¿esta bien, eso . Yeah. Muy bien. Gracias. He visits cuba often and has written expensively about its new business landscape. The changes have been significant, but woefully insufficient. He told me that cuba is going broke. The price of socialism is just too high. Well, you get housing, you get education, you get healthcare, and you get a job. Theres a basic bottom below which people arent allowed to sink. But that bottom has become frayed. It has lots of holes in it. One of the reasons why the state is allowing more Economic Freedom is it needs to relieve itself of the burden of providing for people. [ coins jingling ] [ midtempo folk music plays ] the economic troubles have led to another problem. The cuban population has stopped growing, and they have a major problem with people choosing to leave the country, mostly for the United States. They want to be connected to the rest of the world. They want to have opportunity now, especially young people. They dont want to have the same problem their parents did, waiting for the future to come and it never arrives. ¿que esto . Queso. Chorizo y queso. Thats good. A taste of capitalism has helped. Gracias. But its just a taste. The government is moving in a direction of economic opening, but its trying to control that opening. The cuban government continues to control almost every aspect of daily life. There is no free press. The internet is censored. Small Business Owners have been shut down without warning. In 2013, the state went after private clothing stores. The government closed them all down because it was competition against the government monopoly on retail outlets for clothing. And when the government runs a business, its not always pretty. Hola. I walked into a stateowned store unlike anything ive ever seen. Can i buy a blender . The inventory was meager largely a result of the u. S. Embargo. This one sold mostly blenders and tvs. Whos the manager . Hes not here right now. And dont come to cuba to buy sneakers. So, the government, again, has a monopoly of importing clothing made in other countries and then reselling it to the cubans. A private person cant do this in cuba. Can i buy shoes . I cannot buy shoes . Since december, they havent had any new merchandise. Since december . Next week, its coming in. Hopefully. Up next, the tables are turned when capitalism collides with socialism. What did it cost to build this house . 5,000 . 10,000 . I dont like the kind of. Questions . Questions you are asking. I wineverver wash my hair again now, i fuel it pantene is the first shampoo and conditioner system with active prov nutrient blends that fuel 100 stronger hair. Because strong is beautiful. So Many Americans struggle with finances. Starting today, state farm is here to help. Giving us all the chance to simply sit down and learn. Visit letsstarttoday. Com or talk to an agent. Trade you. Trade you. Trade you. 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So find a venus smooth that contours to curves, the smoother the skin, the more comfortable you are in it. Flexes for comfort, and has a disposable made for you. Skin smoothing venus razors. [ uptempo music plays ] cuba is a country marked by neglect. Many of its beautiful buildings crumbling into dust. Still, there are places that speak to what once was and could be again. But after a few days in town, i wanted to see more. So i hit the road and headed about 25 miles southwest to meet this man. How you doing . Marcus. Fernando. In farming circles, Fernando Funes is a superstar. What do you make here . Four years ago, there was nothing growing here. We grow more than 60 types of vegetables. Today row after row of fresh green produce. Fernando has a phd i