Cannabis Operators Say Lack of Banking Is Biggest Problem
And even fewer are making profits.
Whitney Economics, a leading consulting firm in the cannabis industry released its latest report titled “U.S. Cannabis Business Conditions Survey Report,” which revealed the perspective of cannabis industry operators and factors that are limiting their growth.
“Their number one concern is a lack of banking or financial services then followed by market volatility, big business competition, and taxes,” noted the company in a recent press release.
The 20-question survey, the first in a series of ongoing quarterly economic conditions surveys, was designed to establish a baseline of data and to identify and measure the successes and challenges operators in the industry are facing.
Highlights from the report
Only 42% of respondents are turning a profit. In terms of profitability, women respondents and non-white respondents are faring much worse than white, male respondents.
Lack of banking, market volatility, and state and federal taxation are the key issues facing cannabis operators.
The concerns of the industry are weighing heavier on the minds of operators than are the successes, and this is impacting industry sentiment.
Meanwhile, Senate Majority Leader Chuck Schumer (D-NY) held a meeting with a variety of marijuana reform and advocacy groups to discuss social equity issues as he prepares to introduce a much-anticipated cannabis legalization bill this year.
Schumer called it an “exciting meeting on social equity in federal marijuana reform” in a tweet on Friday. Activists told Marijuana Moment that Schumer again gave vague details about the timeline for filing the Cannabis Administration and Opportunity Act (CAOA), only saying that it will be done “soon.”