When we launched ACB to educate and guide bankers and Cannabis Related Businesses (CRBs) needing to learn about cannabis banking, the most notable observation was how few minorities were represented in key positions. This observation and subsequent research led us to dedicate our company to helping give women and minorities a leg-up in building successful careers and businesses.
For some context, the breakdown of minorities in the cannabis industry varies depending on the source of the data and the specific segment of the industry being considered. However, overall, the industry is known to have significant disparities in terms of representation and access to opportunities for people of color.
According to a report by the New York City Comptroller’s Office in 2018, people of color made up about 80% of arrests for marijuana possession in New York City, but were largely excluded from the state’s emerging legal cannabis industry. Another report by the ACLU in 2020 found that Black people are still more likely to be arrested for cannabis offenses compared to White people, despite similar rates of usage.
A survey by Marijuana Business Daily in 2019 found that about 4.3% of executives in the cannabis industry identified as Black, and 81% identified as White. Additionally, only 19% of respondents reported having a racial or ethnic minority as a founder or owner of their company.
In terms of access to funding, a study by Marijuana Business Daily found that minority-owned businesses in the cannabis industry were less likely to receive venture capital funding compared to non-minority-owned businesses. The study found that 15% of minority-owned cannabis businesses received venture capital funding, compared to 25% of non-minority-owned businesses.
Overall, while there has been increased attention on the need for diversity and inclusion in the cannabis industry, there is still a long way to go in terms of addressing the significant disparities that exist. Many advocates and organizations are working to promote equity in the industry, through efforts such as social equity programs and initiatives to increase funding for minority-owned businesses.