Only about 27% of cannabis businesses are profitable, compared to the national average of 65%. Read more in today's daily, and be sure to subscribe: https://lnkd.in/gznE-Ayy
The cannabis industry is hard. New numbers from Beau Whitney show just how hard: Only about 27% of cannabis businesses are profitable, compared to the national average of 65%. For non-white operators, only 17.5% are profitable. Strict regulations, 280E taxes (cannabis companies can't deduct regular business expenses), persistent competition from the illicit market, and falling wholesale prices contribute to this. But the problem is particularly acute for social equity operators — they need to be provided the tools to actually create sustainable businesses. Without intervention from Congress, banking issues and a lack of fair market rate loans will continue to be roadblocks for making cannabis social equity programs successful. New York lawmakers promised "generational wealth" opportunities in cannabis for communities harmed by the War on Drugs. But this data shows the odds for success aren't good. Congress needs pass common-sense legislation that regulates the industry more effectively. But until then, I don’t expect these sorry numbers to change. Read more in the latest Cultivated Media and be sure to subscribe to get it in your inbox daily: https://lnkd.in/ePjYvtSv