Diversity + Cannabis Business. What’s working & what’s not.

What’s happening? Some say the opening of legalized cannabis hasn’t been open for small and diverse businesses.

Why is this important? The legislation that legalizes cannabis operations has steep license & impact fees that keep small operators out of the industry. Massachusetts have start up costs and impact fees are near $1 million. Some sates like Washington have 25% taxes on each level of the business (growing, distributing, and retail) in addition to sales tax.

How will this be important? In the last 2 years, while tax revenues increase from cannabis, minority executives in cannabis have dropped 15 points to 13%. To turn this around, the start up costs and impacts to small business operators are to be addressed.

Governing | A Shrinking Opportunity for Equity in the Weed-o-Sphere