From Criminalization to Capitalization
For decades, Black communities bore the brunt of cannabis criminalization. In 2013 an ACLU report shared that despite similar usage rates across racial groups, Black individuals were nearly four times more likely to be arrested for cannabis-related offenses. Present day, even in regulated states Blacks are still nearly four times more likely to be cited and or arrested for violating possession laws. Yes, overall arrests have decreased but disparate treatment and impact remains. Now, as decriminalization and regulation expands and the cannabis industry generates billions in revenue, those same communities remain largely shut out of the economic opportunities it presents.
The Lingering Impact of the War on Drugs
The War on Drugs didn’t just fill prisons, it stripped Black families of economic stability, education opportunities and generational wealth. Cannabis-related convictions led to lost jobs, housing insecurity and systemic disenfranchisement. Even in states where cannabis is now regulated, prior convictions still prevent many from entering the industry. Specifically when looking to acquire a traditional license outside of equity program offerings for example in the medical designation, the ever present question of moral character can become a hindrance. A study done by the Reason Foundation in 2018 has highlighted the following:
Restrictions on licensure for convicted criminals is justified because, according to regulators and law enforcement, it reduces the likelihood that the legal industry will be used for criminal enterprises by so-called bad actors.
And if this wasn’t enough, we now have the complication of expungements making some applicants ineligible for equity licensing.
Barriers to Entry in the Regulated Cannabis Market
While the regulated industry flourishes, Black entrepreneurs face steep challenges including:
- High licensing fees and startup costs that favor well-funded, often white-owned corporations.
- Limited access to capital and banking due to federal banking restrictions.
- Complex regulations and social equity programs that, while well-intentioned, often fail to provide meaningful support.
Cannabis Impact Fund (CIF) understands that the push for equity must be a multi-faceted approach. There will be some who look to become entrepreneurs in the space and we support those efforts through our advocacy work. Then there are others who seek to transfer skills and secure meaningful leadership roles within existing companies and organizations. This is where we educate, train and lead in the creation of tangible goals and pathways for equitable practices and diverse decision making tables. The data on the benefits is there and real. Companies with a diverse decision making table are 35% more likely to outperform their competitors and diverse management teams lead to 19% higher revenue.
Shifting from Performative to Purposeful Equity
Equity in cannabis must go beyond performative diversity statements. Businesses, policymakers and consumers must take active steps to create a more just industry. True equity means:
- Prioritizing Black inclusion with ownership and C-Suite opportunities.
- Reinvesting cannabis tax revenue into communities harmed by prohibition.
- Holding companies accountable for equitable hiring and supply chain practices.
Be Part of the Solution
At CIF, we’re working to dismantle systemic barriers by educating, training and creating tangible, SMART goals for equitable business practices. But we can’t do it alone.
Business Owners: Commit to equity in your hiring, partnerships, and reinvestment strategies. CIF offers training to help you implement real change.
Consumers: Support Black-owned cannabis brands and demand transparency in corporate equity initiatives.
Policymakers & Advocates: Push for an accessible industry that allows the process from application to operation to be affordable and traditional free market economics to thrive.
Join us in transforming the cannabis industry into one that is truly inclusive, just, and equitable. Get involved and donate to CIF today.