![]() A report from Whitney Economics showed what many cannabis business owners have been facing: a lack of profit. While some larger companies are thriving, many smaller businesses are struggling with the complications of working with a plant that is still fighting for solid legal ground. The report surveyed almost 400 different cannabis businesses representatives in both established and emerging markets. All across the country, only 42% of respondents said that they are able to make a profit. Another 20% said that they are just able to break even. That leaves 38% of cannabis businesses who are operating at a deficit. While the report said there was little difference between most mature and emerging markets, there were a few exceptions. California seems the hardest hit, with only 26% of those respondents saying they were able to make a profit off operations. This comes as no surprise to those in the Golden State, where struggling is caused in part by crushing taxes and a lack of municipalities with legal dispensaries to sell in. Amongst the whole country, the number one concern has been safe and legal access to banking. Other significant concerns are market volatility, taxation issues, and competition from large corporate entities. The report's author, Beau Whitney, also expressed that the lack of support cannabis businesses receives compounds their difficulties. Things are constantly changing, so advocates will continue to push for the tools to help cannabis-based businesses succeed. Comments are closed.
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