It never has, and never will be easy in this country for African Americans to get a slice of the pie. Many are seeking to get involved in the booming green rush, but not necessarily plant touching or servicing, or running a business/brand. Investing in cannabis is a way many are entering the industry. Investing is different than shopping with and supporting brands. We have been consumers of cannabis in the legal industry for far too long.
In the past, Cannabis was considered “the devil’s lettuce”; but since the Covid-19 pandemic, Cannabis is considered as essential as food, shelter, and water. Cannabis dispensaries and other cannabis related and serving businesses, are considered vital members of many neighborhoods.
The cannabis industry has become a lucrative industry expected to be worth $66.3 billion by 2025. As legalization continues to sweep the globe, Cannabis could be the gateway to entrepreneurial/ investment success. The increasing number of states in America, and countries around the world legalizing and/or decriminalizing Cannabis, and the growing awareness of the benefits of Cannabis, are key factors in its growth.
Forbes states that:
– An estimated 38.4 million U.S. adults consume cannabis at least once annually.
– 36% of cannabis consumers report using cannabis daily.
– 59% use cannabis at least once a week.
Potential Difficulties of Being Black Owned in Cannabis
Pew Trusts, an independent non-profit, non-governmental organization, serving the public interest by improving public policy, informing the public, and invigorating civic life says that:
“Low-income, Black and Hispanic, and formerly incarcerated entrepreneurs also face a more fundamental problem. Cannabis businesses are uniquely expensive and difficult to operate. They must navigate a thicket of state and federal regulations, from installing special ventilation systems to following certain security protocols. Compliance can require hiring experts. And because selling marijuana is illegal under federal law, it’s nearly impossible to get a business loan.”
A few examples for average start up costs for operating a cannabis dispensary, per Cova Software:
California: $250,000
Oklahoma: $140,000
Missouri: $150,000
Michigan: $136,000
Illinois: $180,000
Here is a list of Black & Brown Owned Retail Shops to Consider Checking Out & Support
Black Cannabis BIPOC Retail Stores Nationwide
In Closing
Though there are social equity programs out there, they don’t automatically help and remove hardship from black businesses in cannabis.
The collective way to support black owned in cannabis is to truly support; invest and shop with black owned business!
