for you right here on "mad money." i'm jim cramer, and i will see you tomorrow!

>> this is unbelievable. it's small. >> yes. >> they started selling cookies

out of their house in 2013. now they've really taken off but the retail space, several employees, and a catering service. >> can i trying? i want to buy a box. a big box. can i have an inguala, cafe. what did you do before this? >> i'm a dentist. >> pretty close. >> let's talk about it later. >> is it difficult to talk with the cameras because you worry about people seeing it?

>> yeah. >> tony and sandra are clearly doing well, but this is cuba and you can see the anxiety set in when i ask about money. like others i would meet, they didn't want to say too much, and as a business owner, i respect that. but their steady flow of traffic told me what i wanted to know. i get they were making at least $100 a day, amazing when you consider that most cubans live off $300 a year. tony and sandra's bakery may be pulling in 35,000. >> you look like you like it. >> i can only say off the record. people will probably think, oh, this is just a bakery. no. it happens to be a thriving entrepreneurship in the face of very strong headwinds of regulation. they weren't taught this. they didn't go to school for this. she's a dentist.

he's an engineer. can i see the kitchen? >> of course. >> okay. this is big. what's in here? >> that's an oven. >> this is an oven? >> yes. >> from 19 -- >> probably 1920s. >> and it works perfect? >> yes. >> 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? >> yes. >> they took their engineering clothes off? >> yes. >> you made them a chef? >> step by step. what they've got to do. >> everybody likes sugar, right >> everybody likes chocolate, too, but on the day i visited there wasn't any. >> why don't you have the ingredients? money? >> no, because they are not

available right now. >> chocolate's not available? >> the exact kind of chocolate we use, dark chocolate like more than 40% solids. >> so it's not available. >> right now it's not. >> right now it's not. >> you cannot find it at any store? >> any store. >> i'd like to see where you buy all your products. can we go there? >> so everything here is local. what ingredients would you come here for? >> lemons, carrots, guava, pineapples, stuff like that. >> wholesale as we know it doesn't exist in cuba. there's no costco or walmart, just whatever is available from private vendors at the local market. >> papaya. >> this big? >> very sweet. >> humongous. >> you won't find eggs or milk

here, only government stores are allowed to sell those and they're 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 government approved professions. that's right. there's a list. you can be an accountant, a plumber, a palm tree 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? >> there's a law against that. >> one person -- >> one license. >> one license. >> so you can franchise? >> franchise, no. that's a big enterprise. >> the burner brothers license is in sandra's name. they can only open a second bakery if tony applies for a license in his name. >> and so i'm fascinated by the

fact that you have become students of the rules. >> yeah, we have. >> i think what's unfortunate is that you have to spend time studying the rules as opposed to spending time growing the business. >> it makes it unique, you know? the reason why i see an opportunity here, it's because it isn't easy. if it were easy, you know, you can get anything you want, you can get a license any time 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 >> tony and sandra are smart enough to know that they could d they could take t trade skills of baking and merchandising and advertising anywhere, but they see 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. >> coming up, tony and sandra have big plans. >> the one right here? >> yeah, that one there. >> but there's just one thing in their way. me. >> i'm telling you as your new

friend, you have something special. don't ruin it. >> but, first, stitching a better life one shirt at a time. >> that's okay. i need a little extra cushion.

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forget what you think you know about cuba. forget the old cars, the cigars,

the souvenirs. i saw a new cuba with extraordinary talent in the most unexpected places. people like corennia. >> how are you? she was shy about her english so i brought along a friend to help. do your customers come back through here? >> translator: yes, but most of my clients aren't fat. >> welcome to my house. >> this is where corennia lives and makes her living. >> this is your office? >> uh-huh. >> i squeezed into a workshop barely bigger than a closet with sewing machines from another time. >> translator: to everyone else it may look very small, but to me, it's really big. whatever i own today is because of my sacrifices.

>> corennia is a seamstress and one of havana's top designers for tv and film. she owns the business and the house. in cuba, that's huge. >> this is linen? she's called the queen of the iavara. a traditional cuban shirt. it's her specialty. how much do you sell them for? 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? >> translator: one by one. >> i think we should charge more. >> translator: yes, i know, but in cuba it will be a hard sell. >> in a good month corennia sells 8 shirts making 240 bucks in profit, almost ten times the average monthly salary here. so where do you get the fabric?

>> translator: that's a loaded question. >> loaded? because like many cubans, she's forced to buy from elmerca elmercado negro. why is that on the black market? >> it's not in the stores. >> i want my own shirt. can you make me a shirt? >> 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 cushioning. make sure you keep plenty of room. this is probably a $98 shirt retail. in the u.s. that is. to raise her prices in cuba corennia needs a store, but that's tough here. the government controls most of the clothing industry. >> translator: when you start to get confident, obstacles and

limitations come up. you cannot do this or you can only do this much. >> and who tells you you can't? >> translator: i'm not sure. i guess it comes from the government. >> that's 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 5-year-old daughter camilla. she works very hard, doesn't she? >> translator: very much, and i'm very proud of her. >> you're an angel. and that gives you tears of joy? against the odds corinnia made a better life for them both but it may not be enough to keep them in cuba. does it scare you? >> 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 goes elsewhere, and that really makes me sad because i love my country. >> i can see the day coming when she'll have to make a choice, and it won't be an easy one. nice to meet you. you have a wonderful mother. >> thank you. >> thank you. >> gracias. gracias. i'll come pick up my shirt in a couple of days. oh, this is great. i got a hug, too. after leaving corinnia and her daughter, i took a walk up the street. i wondered if people here are running out of patience. as inspiration becomes more available to people and they see what their options are people are going to start to go after

it, not because they want wealth or they want fame but they want something different. they want something brighter. it feels like you took a picture in 1965 and nothing happened. it's crazy. how you doing, buddy? okay. i'm going to show you again. put your hands here. the kids in the neighborhood didn't seem to have a care in the world. play? but their future looks bleak unless the cuban economy improves. ♪ ♪ >> i turned to someone who's been watching the situation closely. >> this was main street of old havana. >> ted hankin is a professor of latin american studies at barouke college in new york.

he visits cuba often and has written extensively 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. >> will you get housing? you get education, a job. there's a basic bottom below which people aren't allowed to sink but that bottom has become frayed. one of the reasons the state is allowing economic freedom, it needs to relieve itself of the burden of providing for people. >> 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 don't want to have the same problem their parents did waiting for the future to come and it never arrives.

a taste of capitalism has helped, but it's just a taste. >> the government is moving in a direction of economic opening but it's trying to control that opening. >> the cuban government continues to control almost every aspect of daily life. there is no free press. the internet istences censored. 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 owns a business, it's not always pretty. i walked into a state-owned store, unlike anything i've 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. >> who's the manager? >> he's not here right now.

>> and don't 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 can't do this in cuba. >> can i buy shoes? i cannot buy shoes? >> since december they haven't had any new merchandise. >> since december. >> next week it's coming in. >> hopefully. up next, the tables are turned. when capitalism collides with socialism. >> what does it cost to build this house? 5,000? 10,000? >> i don't like the kind of -- >> questions? >> questions you are asking. ordinary tissues left dakota's nose sore and red.

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all seems beautiful to me. 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 funez 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 ph.d. in agriculture. he used to lecture around the world. >> we teach people about the environment and how they can eat better. >> but when the state okayed farming as a private business he quit the classroom and got his hands dirty. >> does this get delivered? >> we have prepared this

already. >> let me help you load it. >> twice a week he packs up his aging soviet sedans selling his fruits and vegetables to 25 of havana's top restaurants. all of that arugula adds up. how much would you get for selling this? >> that would be about $400. >> that's not bad. >> not bad. not bad. >> but he's not in it just for the money. fernando sees farming as a way to promote socialism, cuba's economic model since the revolution. he doesn't even own the land. >> we didn't buy the farm. you cannot buy land in cuba. >> the state merely allows him to work on it. >> so the land is really -- >> a social effect. >> i understand. >> i'm going to say government asset. >> social. in a capitalistic way of thinking, you can take a benefit from that square of land. but that square of land will be there for thousands of years more. the land is a common asset.

>> okay. gracias. >> he not only pays his workers more than the average government wage, he feeds them and houses some of them, too. fernando is a socialist to the core so i wondered how he got his new house. beautiful. it's very smart how you built this. now the breezes can cross. what did it cost to build this house? >> but you are asking me difficult thing. i cannot tell you how it cost. >> okay. 5,000? >> maybe more. >> 10,000? >> less. >> where do you get the money to do that? do you get the money from the government? do you have family send it from america? >> i don't like the kind of -- >> you can tell me. it's okay. >> i don't like the kind of -- >> questions. >> questions you are asking. >> they make you uncomfortable? >> maybe. >> okay. he told me the money came from

lecturing over seas, not something most cubans get a chance to do. >> let me tell you why i'm asking. i'm not trying to ask for any reason other than to understand how -- >> i can't start asking you about your private shirt. >> i don't, cash. i don't have any stocks. i invest in other people. i invest in people like you. >> how much you pay to your employees? >> $12.25 per hour. that's the minimum. if you work for me, that's the minimum you make. >> and do you have only one wife or more than one? >> i'm not married. >> you're not married? >> no. okay. >> are you gay? >> no, i'm not gay. anymore questions for me? >> yes. let me think. >> okay. anything you want. >> and i will ask you. >> and i like mango juice more than orange juice. fernando seems satisfied and our talk turned back to his farm. can i see the bees?

i'm not going in there. >> yes, i have dress here for you. >> whoa. >> the other way. it's going to be hot. >> i don't care. as long as i don't get stung, i don't care how hot it is. when it comes to bees i have no comfort zone. >> we started here with one bee hive 2 1/2 years ago. now we have 80 hives. >> the 80 hives yield three tons of honey. fernando is forced to sell most of it to the state for $900 a ton and then the state resells it for more than three times that. >> you sell it for 900. >> about three times. they cover all the costs of transportation. >> that's nice of them. >> they give advice also for us. >> they give you advice? >> yes. >> i could give you advice that won't cost three times. >> at least the government isn't buying his vegetables.

those he makes real money on. later that day the greens we packed up at the farm arrived at la guerita. it's one of havana's hottest restaurants and a magnet for celebrities, like madonna, rihanna, beyonce and jay z. enrique nunez owns the place. >> welcome. >> beautiful. >> he grew up in the building. people now eat where he used to sleep. >> this is your original apartment? >> that's my original -- >> this is where i grew up. >> my bedroom when i started the restaurant. >> very cool. hi, folks. >> hi. >> enrique's success took more than a little creativity. cuban laws limit a restaurant like this to just 50 seats so he figured out a way to add another

50 by applying for a cafeteria license. >> so how many seats do you have? >> we have 100. we have two seatings. >> how much does it cost for one person on average to come eat here? >> it's like 40 bucks. >> 40. you'll do 8,000 in a night? >> not every night. >> but in a good night you'll do 8,000. >> best night. >> worst night? >> three, four. >> less. >> nah, nah. i've seen that before. cubans don't want to call attention to the money they're making, but enrique's success is obvious. he just opened a new rooftop bar with great views. and the tourists are drinking it in. >> what do you guys think of the view? >> the best restaurant in havana. if anyone wants to experience real life in cuba, you come here, you can see it all. >> but enrique knows the dinner here costs the average cuban almost two months salary so they stay away. he wants to change that.

>> less tourists, more locals? >> more locals, less tourists, yes, that's one of my dreams. >> and how do you think that becomes possible? >> i hope the cuban economy can grow and develop. >> with 40 employees, enrique is helping to grow that economy even though 20 of his best workers recently left for america. nothing is easy here. i have a lot of respect for you and a lot of admiration but now i want to eat your food. let's go eat some food. up next. do you ever go fishing? >> no. >> travel downie road in havana, you'll find a surprise at every turn. i feel like i went to bed an hour ago. i'll make the cocoa. get a great offer on the car of your grown-up dreams at the mercedes-benz winter event.

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now in kids chewables. at burner brothers bakery business has been sweet for tony and sandra comacho. so sweet they're setting their sights on a new venture and i wanted to check it out. >> where's the building that you guys picked? >> here. that corner. the white one. >> the white one, not the blue one. >> they've gone ahead and bought a new space in a real hot spot where the cruise ships stop. with the record number of tourists visiting cuba this year, this is prime real estate. and i had a lot of questions.

how much was it? >> like $46,000. >> 46,000? >> yes. >> it's the whole building? >> no. just the bottom. >> buying and selling property has only been legal for five years, and only native cubans can buy in. >> our space starts here. >> i thought they were building another burner brothers. >> you can take customers. >> no, no, we're going to rebuild this. >> but these bakers are getting into the restaurant business. >> you're opening up a fancy restaurant? >> well, we want to make this a bar. we want to sell drinks. also, we want to sell meals. >> i'm skeptical. the place needs a ton of work, new stairs, new balcony, new kitchen. i'm worried it's a money pit. >> what do you think it's going to cost to do this whole project? >> i don't know, $40,000. >> only 40,000? >> well, it will cost a lot more, but that's what we've got. >> do you have it saved already?

>> yeah. >> you have sold a lot of donuts. >> no, no, no, that money is not from the donuts. >> where is it from? >> my dad, my cousin which is partner, too. >> so it's a family business? >> yes, it's a family business. >> so what do you forecast the business is going to make in the first year after you pay all the bills? have you put it on paper? >> we haven't done that yet. >> it was clear to me that tony and sandra did not do the math on this one. are you going to be open seven days a week? >> yes. >> so seven days a week, good luck, by the way -- tony and sandra are planning on an average bill of $15 a person and hoping to take in $1500 a day. with 42 seats in the restaurant, they'll need a lot of turnover to hit that number. restaurants have one of the highest failure rates of any

business, and these two already have a successful bakery. i don't know why they don't just open up a second burner brothers. >> why wouldn't you duplicate that and build a brand? it's something that you know. >> burner brothers is something that we know because we start from zero and we have something now. >> beautiful. >> okay. this is zero and we will do something. >> i know that you probably won't listen to me, but i'm telling you as your new friend, you have something special. don't ruin it. >> and then i learned something else. they were offered 200 grand for this place. they could profit $154,000 without doing a thing. my big question is how many years, how many people, how much [ bleep ], how much aggravation do you have to do to get 154,000 right now? think about it.

see how much money you're making in the burner brothers and go from there. this is a bad idea. >> okay. >> i'm being honest with you. >> no, no, no, okay. >> i'm sorry to -- i'm sorry. it's never easy telling someone their dream is a mistake, but the numbers don't lie. maybe in the future the government will allow franchising, maybe. when they do, you're ready. if you build a few more burner brothers you could be the dunkin' donuts of cuba in ten years. i had no idea what tony and sandra were going to do, but i knew what i wanted to do, get some fresh air. so i called up my favorite taxi driver, armando lee, to do some sightseeing. we took a ride down havana's favorite highway along the sea. it's a gathering spot for locals. do you ever go fishing? >> no. >> why? >> because i don't know how to

do it. no, it's not only that. >> if hemming way can do it, so could armando. we got out to take a closer look and throw down a challenge. what's this right here, my man? doing a little fishing tournament. whoever catches the biggest fish in the next 10 minutes gets $20. you have to do it with me. >> okay. i will do it. >> 20 bucks. tell me it's not possible. i told him to just keep fishing and not worry about it. >> the sun was fading fast, but there was barely a anybody. >> armando, not one person, one minute. okay. that's it, right here. bring it. bring it. okay. this is the winner. show him your fish. [ applause ]

>> give him the money. that's it. his father's right there. so, with a little seed money, perhaps a new cuban entrepreneur is born. coming up, six women, a crock pot and the drive to succeed. >> we are doing what we want to do. we are trying to change our life. oh, look... ...another anti-wrinkle cream in no hurry to make anything happen. neutrogena® rapid wrinkle repair works...

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it's a word i heard over and over fen in cuba, resolve, ingenuity, making it work. sandra? >> marcus. >> nice to meet you. >> nice to meet you. >> three years ago a simple luxury like handmade soap didn't exist here. that's where sandra algama steps in. thank you for having me. today she and her six employees have turned this modest kitchen into a factory line. >> we are selling about 1,000. >> 1,000 soaps a month. >> from three years ago, 100 a month? >> si. >> okay. sandra's business is called de bruja. this is witch's soap. why witch's? >> because witch's make magical

potions with plants. >> they start with natural soap from the government store. first step, they have to melt it down and, yes, that's a crock pot. these are some resource full witches. >> do you stir? >> yes. >> can i do it? >> yes. >> are you sure? >> yes. >> they spoon the soap into molds and it dries for five days before it's wrapped up. you'd think the packaging would be the easy part. not here. >> i could use another bag but i need this one. >> where do you get it? sandra can't get bags for her soap from cuba so a relative from the u.s. is next. what she does next is part martha stewart, part mcgiefr. >> it comes as a bag for bread

and you cut it and make small ones? >> yes. >> it kind of doesn't matter that it's soap. what matters is that sandra wanted to generate commerce and they figured out how to do it. she's taking things that are already produced in different components, the bags, the fragrance, the soap that's already finished and she's reconstituting them and coming up with something that's more special. i wanted to see sandra's store so i headed down to the artisan's market. there's, of course, a havana. i saw booth after booth of private businesses. crazy to think a few years ago this was illegal. here we go. the brujas. sandra offers ten different types of soap. each one costs $1 to make. she sells some for 2 bucks, some for $2.50. the government charges her $94 a

month in rent. >> so you have to sell 45 soaps to pay your rent, right? and how many soaps do you sell a day? >> now we have 26. >> today you've sold 26 already? >> yes. >> i love that you know that. most people don't know that. >> one soap. you have to buy one soap. for my friend, the brujas. the market is a huge attraction. sandra should be able to boost her traffic easily, but it's not that simple. >> you're in the corner. why don't you go to the other corner and do another one? >> it is not allowed to have two stands the same owner. >> with the same name. >> with the same name. >> you cannot have two stands? >> no. >> this sucks. still, there are some things we can fix. i want them to move the sign so customers can actually see what they're selling. >> you take the sign -- >> and what they should be

selling is soap, not dream catchers and random trinkets. >> i know what you mean. >> why do you do it? it's no good. >> no. >> for the customer it's confusing. >> instead, sandra should be selling products connected to soap, like candles or room spray, an easy idea, or so i thought. >> the problem with that is the bottom. it's difficult here. >> so what about for candles? >> it's a little difficult but i can -- we can try. >> i love that about sandra. to her, nothing was impossible. >> we are making something different. at least in our country. step by step we are growing and learning. >> for you to be able to grow up as a little girl in cuba, to surround yourself with good people, to make a living for yourself and for your family

with no help, it's a bigger deal than you think. a really big deal. is it emotional for you to think about it? >> yes. >> why? >> no, no, no. >> why, sandra? what are you crying about? >> i don't know. this is a way to do what we want to do because we are our boss and we -- >> control your destiny? >> yeah. it's a way. >> this is one thing that's important before i go. emotion in business is important. if anybody ever takes the emotion out of business, the business will die. up next, a big decision. don't ruin it. a beautiful souvenir. >> can i go put it on? and the biggest question of all. if this country doesn't change, are people going to stop trying?

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a week in cuba, sweltering, satisfying, something i'll never forget. booth number 432. i'll be able to tell people 30 years from now that i had my haircut in cuba in a communist country. these people have nothing and they're figuring it out. i'm learning myself that i have to be more resourceful. before i left i had one final

thing to do. back here again. squeeze down that alley way into corinnea's home. my custom shirt was waiting. beautiful. can i go put it on? the verdict? perfect. >> i love my shirt. >> the queen earned her title. >> and it's comfortable because i've been so hot. >> the laws don't allow it now, but perhaps soon i can help her sell her shirts in the united states. >> maybe, just maybe the shirt could be called camilla de marcos. as for tony and sandra, this is the restaurant? >> yes, it is. >> after telling them not to open the restaurant. that's a bad idea, and to concentrate on their bakery

business. they took my advice and dropped the restaurant idea. they're selling the new space. >> thank you. >> and will invest the profit back into their bakery business. as it turns out, a smart and lucky move. officials have put a freeze on new restaurant licenses, a blow to the fledgling business community. >> if this country doesn't change, is talent going to be suppressed? is it going to be lost? are people going to stop trying? cuba stands at a moment of possibilities. tensions with the u.s. have been eased. the people i met are hungry for the chance to rise or fall on their own, but make no mistakes, their fate may restless in their hands than in those of their government. i'm marcus lamone.

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ who believes he has a better way to send a thoughtful gift. hello, sharks. i'm john, and i'm so excited to introduce to you today the world's most genuine online floral solution -- the bouqs company. i'm here seeking an investment of $258,000