Despite barriers, female entrepreneurs breaking the cannabis ‘grass ceiling’

A woman- and minority-owned venture, recreational dispensary Nightjar opened in January in Bloomfield.

Though cannabis remains a male-dominated industry across the U.S., female entrepreneurs in the Garden State are making progress in breaking the so-called grass ceiling. Over the course of Women’s History Month, NJBIZ spoke with some of the women involved in the sector about the highs – and lows – of a rapidly evolving space that’s expected to surpass the $1 billion mark in revenue this year.

“Whether you work in cultivation, manufacturing, retail or as an ancillary service provider, many of us do it because we believe in the power that cannabis has to help people from all walks of life,” added DeRogatis, who launched Nightjar in January with co-founders Amanda Rositano and Katie Covett.

Dharshini Casinathen, who co-owns recreational dispensary Joyleaf in Roselle with former FreshDirect founder and CEO Jason Ackerman, said she feels that since the cannabis industry is “still relatively new … and evolving,” it is not “burdened by the same historical corporate structures and gender biases found in more established industries.”

As a result, women have seized upon the numerous entrepreneurial opportunities that have opened up and innovated in areas like product development, retail and ancillary services, she said.

Casinathen also believes the cannabis industry – particularly in segments like medicinal and CDB – has a strong connection to health and wellness, an area where women have “historically been key consumers and advocates.”

Standing tall

Only about 16% of cannabusinesses nationwide are women-owned – down from an average of 21% the past two years, according to a recently released survey of industry professionals by trade news publication Marijuana Business Daily. However, the percentage of women executives in the C-suite rose from 23% to 39% over the past year.

While the report said the forces behind the shifts in ownership and leadership will take time to understand, it speculated that a post-pandemic return to normalcy could be the cause. Shortly after the onset of the public health emergency in March 2020, women – whether by choice or not – exited cannabis leadership posts, the report said.

Given the growing awareness around a lack of diversity in the sector as a whole, New Jersey regulators have been trying to address it in several ways, such as prioritizing licenses for minorities, disabled veterans and women.

Now home to more than 100 legal dispensaries, New Jersey’s medicinal and recreational markets generated more than $800 million in combined sales last year.

Of the 1,600 licenses approved by the New Jersey Cannabis Regulatory Commission, more than 400 are for majority women-owned businesses. Of the 219 operating licenses issued, 59 of those enterprises are owned by women. While the majority of those ventures (51) are retail establishments, women also hold licenses for seven cultivation companies and one manufacturing business, the CRC reported.

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