Ensuring access to (1) non-predatory capital, (2) education, and (3) business services are the most needed and effective measures to support the participation of equity applicants in the regulated cannabis industry, according to the “Social Equity Legislation in Cannabis: A National Study of State and Local Approaches” report, published by The Initiative.
The Importance Of Equity
Social equity legislation and programming are vital as the cannabis industry moves closer to legalization. As the first industry to attempt to legislate this type of social change, and with committed corporate and non-profit partners, the cannabis space has the opportunity to lead the way for other sectors, while creating evidence-based best practices to support meaningful and documentable success.
The team of researchers and drafters at The Initiative compiled a clearinghouse of all state and local social equity legislation as well as a database of the primary social equity organizations focused on business growth and entrepreneurship. This included outreach to state and local governments, private programs and a number of operators who provided direct input and feedback.
The research team is women-and-indigenous-led and the work has been peer-reviewed by numerous diverse industry leaders, professionals and participants. As a result of the research, interviews and review of social equity survey responses, the following issues are clear:
Holistic And Ongoing Support
The research made one thing clear: the best equity programs, with the greatest chance of success, are those that provide an ample selection of services including holistic and ongoing support. This concept of “wrap-around” support is not new and should be strategically employed when creating legislation, either state or local.
This will often imply partnering with vetted corporate or non-profit partners to provide the tools and resources, both on the skills and funding side, that the government cannot.
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Photo: Cannaclusive
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