CANNABIS CULTURE – While the corporate cannabis industry boasts huge revenues, government handouts and unlimited potential – reality is often a struggle – especially for smaller, independent, unconnected cannabis brands.
Alyssa Angell, Owner of Blazing Jane in Maine, has experienced many of these small business struggles first-hand.
“On a daily basis I’m seeing big cannabis companies allowed to advertise publicly and be traded on the NYSE, but I can’t even store my money with local banks. I have to drive 45 minutes just for banking.” Said Angell.
While legalization may solve some problems for smaller cannabis companies, it may not be as helpful as many assume.
“It’s hard to balance the pros and cons of federal legalization. On one hand, there are still thousands of people in jail for non-violent cannabis charges. No one should be in jail because of a plant.” Said Angell, “But I know we’re going to see MSOs and corporate cannabis companies swallow up the small businesses as soon as federal legalization occurs.”
What’s hard to do is weigh whether national cannabis acceptance will be more helpful than harmful. The biggest drawback is that sweeping legalization will mean big money pouring in.
The doors for corporations seeking huge profits will be kicked open. Companies like Amazon have already taken interest.
The “Amazon effect” in cannabis
We’ve all heard the stories. Cannabis has historically been used by police to harass, incriminate, and incarcerate a vast and disproportionate number of People of Color and low income community members. These people are now watching others capitalize on the same plant that landed them in jail.
While it’s true that social equity is beginning to take root in some legal states, there is little guarantee that sweeping legalization will maintain these smaller, more local efforts. Historical market patterns tend to tell a different story.
Look at Amazon, for example. Between 2007 and 2017, the number of small retailers fell by 65,000 – directly correlating with Amazon’s expansion of product offerings and growth.
Will we see an “Amazon effect” in cannabis? We’re already starting to. With consolidation and massive mergers taking place, the small businesses of cannabis are being pushed to the side.
“It’s scary to see companies like Uber, Doordash, and Amazon uprooting small businesses in America and think that could happen in cannabis. Big businesses benefitting from the hard work of small ones is a common trend but I hope we can find ways to avoid this. If we don’t take action now, we’ll see history repeat itself in this industry.” Said Nick Medlock, CEO and Founder of CannaHauler, a cannabis transportation software.
We still have the opportunity to combat consolidation in cannabis. Depending on the steps we take now, there is still plenty of potential to make this a diverse, equitable and fair industry.
Building an equitable cannabis industry
I’ve laid out the pros and cons of federal cannabis legalization. But what can we do to build this industry right and avoid seeing a downfall for small marijuana businesses?
It all starts with a unanimous understanding and acceptance of the problems to come if we don’t make changes. Remaining ignorant is no longer an option. We know there will be consolidation and an influx of cash when cannabis is legalized federally, but can we create opportunities for the smaller companies to remain competitive?
One important step toward a fair and equitable cannabis industry is already happening. States are handing out social equity licenses to make sure there is still room for those who have been negatively impacted by the War on Drugs.
There has also been an increase in social equity and social justice initiatives taken on by private companies in order to right the ship. Some companies that are lifting up local cannabis businesses are:
- Cookies has partnered with Green Flower and Meadow to provide a free online cannabis learning platform.
- Flowhub offers free software to people of color and dispensary owners that have been disproportionately impacted by the War on Drugs.
- NDICA assists individuals and companies in with priority processing, technical assistance, free deferral programs, business licensing and compliance, and licensing application assistance.
Many groups are doing their part to create a socially just cannabis industry. But more work has to be done. There is a need to hold the large companies accountable for the success of small cannabis businesses. Without their support, the entire industry will be made up of a few select corporations.
Shop small, consistently
The most tangible takeaway that everyone in cannabis—consumers and employees alike— should implement today is supporting small businesses in cannabis. Not just on Small Business Saturday, but consistently throughout the year.
The culture of cannabis goes hand in hand with the trademark effects of the plant. People are calmer, more in tune with reality, and generally nicer. We need to keep this foundation even as the industry evolves and expands.
Small cannabis business owners have been on the front lines of legalization because they’re passionate about the plant, not because they’re greedy. They’ve operated with constantly shifting regulations, unreasonably high taxes, constant fear of being shut down by the federal government, and little more than a dream that someday this will all be sorted out.
These efforts need to be rewarded now that the U.S. is beginning to realize its cannabis laws have been outdated since their inception. The momentum is certainly behind the cannabis train, but where it will go next is entirely up to the people—what do you want a legal cannabis industry to look like?.
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