NJ Cannabis and Black-Owned Businesses: Why Black Entrepreneurs Should Seize the Day

NJ Cannabis and Black-Owned Businesses: Why Black Entrepreneurs Should Seize the Day

After years of keen efforts and fierce campaigns for the legalization of weed in New Jersey, the struggle looks almost over. Medical marijuana is already legal, and the journey to legal recreational cannabis is pretty much there. The state Assembly and the Senate voted in favor of the legalization bill at the close of 2020. And although there's still some legalese to be sorted out, the future looks brighter than ever for the industry.

It's quite ironic, too, as New Jersey is one of the states with the highest arrest rates for cannabis offenses. In 2017 alone, the state made 34,501 arrests for weed possession and 3,122 for weed sales. Another paradox is that these outrageous arrest rates are in one of the states. Where marijuana for medical purposes and alternative medicine has been legal for over a decade.

The odds appear to be shifting, however, and it's quite exciting to watch. The NJ cannabis industry is bursting with potential for foresighted businesses and entrepreneurs. But not only is there massive room for entrepreneurs to secure a slice of the pie, legalizing weed will be sure to revolutionize New Jersey's economy as well. In 2016, a report projected that the NJ legalization of cannabis would generate annual in-state sales worth $1.2 billion, which amounts to a whopping $300 million in sales tax revenue at the rate of 25%.

NJ Cannabis and the Black Entrepreneur

From all indications, billions of dollars are at stake as far as the NJ cannabis industry is concerned. The prospects are so alluring that investors and entrepreneurs all over the world are intently eyeballing the state and strategizing to secure cuts of the market share as soon as they can.

There's absolutely no reason why Black entrepreneurs in New Jersey shouldn't act on this opportunity for Black business ownership in the recreational cannabis space, and more so too. With the disproportionate number of marijuana-related imprisonments of Black people in New Jersey. There's no demographic that deserves a seat at the table more. Black residents of New Jersey are 3.5 times more likely to be arrested than whites for similar weed possession cases, which isn't far off the national average of 3.6.

The state looks to make some amends in this regard as 70% of the sales taxes and 100% of the excise taxes on growers are expected to be channeled to New Jersey communities where people of color have been most adversely affected by the state's rampage on drugs.

Get in the Game

Although funding is usually a major challenge for Black entrepreneurs, here are three surefire ways to push your cannabis business plans forward regardless:

• Study the space: Doing your research and educating yourself on the cannabis industry, its prospects, trends over the years. And possible products are a sure way to prepare yourself for this wave of opportunity. Now's the time to involved with industry conferences, meetings, and expos. And begin to picture and plan what you’d like to offer. It may help to get in with CBD (even though it may not be as lucrative) while you await an opening for your business in the THC market.
• Network: As with most other businesses, the next key thing is to build your network. Playing your cards right early on can help you raise the capital. And get the connections you need to kickstart your operations.
• Chase quality: Being the best at what you do will always single you out of the crowd and give you an edge; the cannabis industry is no exception. Don't settle for less – Black excellence all the way.

Only 4% of cannabis-related businesses nationwide are Black-owned. Compare that to the monstrous figures for related Black arrests nationwide, and you wind up quite discouraged. Nonetheless, there's been a lot of anticipation for the NJ legalization of cannabis by the Black community. As there should be, and we're eager to see this zeal translate to real business moves.

The Bottom Line

There's no better time than now. The possibilities are endless. And it's a tad helpful that 15% of the licenses for cannabis businesses are reserved for minority-owned enterprises, even though this figure isn't nearly as much as it should be.

The stage is set, all that's left is for focused, strategic, and dedicated Black players to hop on. Take the bull by the horns, steal the show, and make a real impact on the industry. And we look forward to seeing this happen.