The Challenges of Doing Business in Cuba Relations are thawing, but entrepreneurs should tread carefully.

This article is part of our Trends 2016 coverage.

Fewer than 100 miles of ocean separate the U.S. and Cuba, but the nations have spent the last five decades in different worlds. Ever since John F. Kennedy signed Presidential Proclamation 3447 on Feb. 3, 1962, declaring "an embargo upon all trade" in response to Cuba nationalizing U.S.-owned Cuban oil refineries without compensation, Americans have been effectively blocked from doing business in the country.

That's finally changing. On Dec. 17, 2014, President Obama announced plans to renew diplomatic relations, pledging to ease trade and financial restrictions. In July, both countries reopened embassies, and already a handful of U.S. companies, including Verizon, Netflix and Airbnb, have expanded into the Cuban market.