Cannabis Industry's Diversity Problem Persists: This Groundbreaking CEO Program Provides Solutions

Despite state-led efforts to promote equity in cannabis, black entrepreneurs in Massachusetts still comprise less than 2% of the owners in the industry, according to a recent jobs report published by Leafly NASDAQ: LFLY. Meanwhile, the legal cannabis industry in the U.S. is forecasted to reach $50.7 billion by 2028.

What's To Be Done? 

Given the ongoing equity gap, established cannabis operator Parallel is continuing its partnership with Black CannaBusiness (BCB) to support cannabis owners of color. BCB and Parallel are in Boston at the moment conducting their second annual national education series for CEOs of color in the cannabis industry. The Black Cannabusiness CEO Intensive Program is a free, six-week, executive training program for cannabis business owners, featuring both virtual and in-person workshops and training. 

“A business education tailored for cannabis executives of color is impactful because it is culturally competent. BCB facilitators of color lead the program and CEO participants get the chance to network with other entrepreneurs of color. These elements help provide a clearer path to success,” said Brandon L. Wyatt Esq. who along with Todd Hughes are co-founders of the BCB CEO Intensive.

Inequity In Cannabis Industry Persists

As of 2022, the landscape of the legal cannabis industry remains as homogenous as ever, and it’s not getting any better.

“Minorities played a significant role in cultivating this market long before it became the massive industry it is today, yet now, many of us have been shut out of the cannabis industry and struggle to successfully operate in this new landscape,” said Jonathan Torres, a legacy operator and CEO of OnePR Business Development.

Surveys going back several years found that nearly 85% of U.S. cannabis business owners and founders were white. Leafly’s 2021 jobs report showed that despite Black people representing approximately 13% of the population, they accounted for only 1.2% to 1.7% of business owners in the industry, although the prevalence of Black entrepreneurs varies from state to state, precious few meet a 5% Black ownership rate. 

Situation Equally Bleak For Women

According to MJBizDaily’s 2021 Women & Minorities in the Cannabis Industry report, female executive representation is down to 22% - well below the 36.8% in 2019 and far below the national average for mainstream businesses.  

“Being a woman and a person of color in cannabis can be difficult to navigate, and it can be challenging to maintain a positive mindset about growing your business while dealing with the stigmas people have about cannabis," said Keyla Dehoyos, CEO and head chef of Liquid Gold and participant of the Boston cohort, who called the BCB program "empowering." 

Photo: Courtesy of Parallel