Worcester Business Journal

18 2020 Economic Forecast • Worcester Business Journal • www.wbjournal.com Committed to the success of your business Established thirty years ago in 1989, Bollus Lynch has grown to become one of the area's leading CPA firms. While we've expanded our depth and capabilities, the firm has remained steadfast in its deep commitment to the Central Massachusetts community and our growing list of valued clients. 89 Shrewsbury St. Suite 200 • Worcester, MA 01604 508-755-7107 • www.bolluslynch.com BOLLUS LYNCH CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS An Independent Member of the BDO Alliance USA To p m a r i j u a n a s t o r i e s i n 2 0 1 9 Worcester Business Journal WBJ Worcester Business Journal Know Central Mass. Business Stay informed, engaged and connected with a print + digital subscription to the Worcester Business Journal. You'll receive bi-weekly issues, special publications and full online access. Subscribe online: wbjournal.com/subscribe, Or call: (508) 755-8004 >> Minorities are hard to find in the legal pot industry Marijuana is now legal to sell in Massachusetts, and the state's newest industry has taken off. In January five stores had been given the state's greenlight to sell products, and more than $2.2 million of cannabis products were sold in the first month of sales in an industry anticipated in bring in $1 billion by its second fiscal year. Worcester native Ross Bradshaw and his prospective marijuana retail busi- ness New DIA want to tap into that money-making machine, with an appli- cation to Worcester officials in the hopes of landing one of the last six host community agreements. But people in the marijuana industry like Bradshaw – a minority who grew up in the Washington Heights neigh- borhood of Worcester – are hard to find. The industry, which in its infancy relies on companies with ready access to cash, is not very diverse. According to the Massachusetts Cannabis Control Commission figures in January, 3.1% of the 224 businesses in the state's regulatory system are owned by minorities, 2.2% are owned by women and a 1.8% are owned by LGBT people. Meanwhile, 85.3% are owned by someone not identifying as a disadvan- taged business enterprise, meaning they most likely are run by white males. Minority workers in the marijuana industry – whether they be executives, board members, managers, employees or volunteers – are also hard to find in the industry. According to the CCC, 73% of the state's marijuana workers are white, as of Dec. 13, 2018. The next largest group in the industry is Latinos at 6.4%. African Americans make up 4.2% of workers. Before marijuana was legal to sell and possess in Massachusetts, minori- ties played a disproportionately large role in the cannabis industry, based on arrest records. But now with the indus- try legalized, nearly all the businesses are run by rich white men, and their workforces skew disproportionately white. To combat this trend, state marijuana officials have crafted a new program meant to include more minorities and people impacted by the War on Drugs in the legal industry. Cities like Boston and Somerville have at least discussed setting benchmarks to give a certain portion of licenses to a diverse groups of applicants. However, Worcester – with its large minority population – has not set such benchmarks. Lack of diversity Of the 224 active applicants for Massachusetts marijuana business licenses in January, nearly all didn't identify as a disadvantaged business enterprise. Veteran-owned 3 1.3% LGBT-owned 4 1.8% Women-owned 5 2.2% Minority-owned 7 3.1% Identified as two or more DBE business types 14 6.3% Did not identify as a DBE Business 191 85.3% Total 224 100% Number Percent of Business type of applicants total applicants Race breakdown Nearly three out of four workers for Massachusetts marijuana businesses in January were white. Includes executives, board members, managers, employees and volunteers. Industry agent Number Percent White 1182 73.0% Hispanic; Latino; Spanish 104 6.4% Black; African American 68 4.2% Identified as two or more ethnicities 25 1.5% Asian 19 1.2% Middle Eastern; North African 2 0.1% American Indian; Alaska Native 2 0.1% Other race or ethnicity 24 1.5% Declined to answer 193 11.9% Total 1619 100 Source: Massachusetts Cannabis Control Commission

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