Social equity in cannabis looks different in every state. At MJBizCon, the people working hardest to open doors for others came together to trade insights and discuss what it really takes to succeed and get a leg up. Kicking off the session was Cash Color Cannabis founder Mehka King, who urged the room to keep the “spark of social equity” alive by staying vocal and showing up for the work.

Get in the Room With Regulators

Panelists agreed that one of the most effective ways to advance equity is by getting directly involved in policymaking. Regulators often lack on-the-ground business experience, especially in cannabis, and need industry voices to help them understand the challenges equity operators face. Ernest Toney, founder of BIPOCANN, a nonprofit that supports minority entrepreneurs in business planning, noted, “A lot of times the folks who are in positions to make the rules and create programs may not have been business owners themselves, so your perspective is really helpful.”

Wesley McWhite, NJ, Director of the Office of Diversity and Inclusion, emphasized that advocacy can’t end once a license is issued. “Social equity operators need to be on the front lines, not just through licensure and operations. Your stories, your identities, and the work you do on the front lines shape regulation and policy. We want to create opportunities for you, but we need your input, your support, and your services.”

Beatrice Carranza, founder of the gummy brand BACHAZ, said the regulators she’s worked with “have not been well-informed and seem disconnected from my community and the struggles of a social equity entrepreneur.” But she stressed the responsibility goes both ways: “Entrepreneurs need to be more involved in that space, helping influence regulations. Getting a seat at the table will create a better roadmap for the people coming behind us.”

King underscored the same point: “You can’t just be a shop owner. You have to be an advocate.” McWhite agreed, noting that success for an equity operator means not just complying with the system, but working to improve it.

Economist Beau Whitney called for a data-backed framework for policymaking. “It’s important to set up measurable policies—if you don’t measure something, it’s tough to manage it or assess its impact.” But numbers aren’t enough. “Tell your story,” he added. “It shows up in the data, and it creates the emotional connection regulators need to understand the stakes.”

Build Your Tribe

Whitney urged entrepreneurs to invest in community-building. “A community will amplify your voice,” he said. “By participating and having a large presence, you can help shape policy. And it’s important to collaborate with other organizations so they can amplify your voice, too.”

McWhite said the industry is surrounded by potential allies, and tapping into those relationships can create a stronger, more unified push for equitable policy. He pointed to healthcare professionals who are witnessing declines in opioid addiction where cannabis access is available, as well as seniors turning to cannabis for sleep and pain relief. Both groups, he noted, have powerful stories and established credibility that can reinforce the industry’s message.

These partnerships can take many forms. Cannabis operators can team up with healthcare providers to host educational workshops or co-sign letters of support for harm-reduction policies. Senior advocacy groups are eager to collaborate on safety education and can be valuable voices during legislative testimony. Small-business associations can help cannabis entrepreneurs push for fair permitting and access to capital, and social justice organizations can join forces on expungement clinics or criminal justice reform campaigns.

McWhite added that regulators themselves need to break out of their own silos and bring more state agencies into the fold. “For us as regulators, our advocacy means educating other state agencies and breaking down silos, like environmental agencies, economic development agencies, and energy agencies, to get everyone involved to work together.”

Lay Your Foundation 

Ernest Toney has worked with more than fifty businesses in Colorado through BIOCann to help navigate the industry’s steep learning curve. In addition to the lack of access to capital in this capital-intensive industry, he sees the bigger hurdle for new entrepreneurs is understanding business fundamentals. He says a solid business plan is the first step in building a strong foundation for success.

Beau Whitney highlighted that lenders often perceive higher risk among social equity applicants due to factors such as past criminal records or limited business experience, which drives up the cost of accessing capital and makes profitability harder to achieve. His research shows that in 2022, 45 percent of white operators reported being profitable compared with just 32 percent of non-white operators. Last year, profitability for non-white owners dropped to 17.5 percent, though it still marked an improvement from the previous year’s 15 percent. Whitney said, “There’s a disproportionality in the profitability of social equity motives that just desperately needs to be addressed through policy, the regulatory practices, and knowledge and understanding of education within the community.” Despite the challenges, he noted that recent data shows signs of improvement, suggesting there is still real opportunity for operators who have the right support and resources behind them.

Whitney also added that being hyper-focused on a specific target market can be just as powerful as funding. After analyzing small and social equity businesses across the country, he found that success doesn’t always require vast amounts of capital or massive production infrastructure. Many of the women- and minority-owned brands he has studied built multimillion-dollar companies by starting with as little as 250 to 500 pounds of biomass and transforming it into products designed for a clearly defined audience. Whitney emphasized that understanding your market, refining your product for that customer, and staying disciplined in your strategy can matter more than having deep pockets.

Mehka King ended the panel with, “Having an understanding of the use of data, understanding of the risks that you’re entering into, and developing processes to address those risks when they come about is critically important. So, understanding and educating yourself on what’s going on in the industry and where things are going, and then reaching out to other members of the community, is powerful for developing a community and supporting each other throughout this process.”

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