Worcester Business Journal

14 Worcester Business Journal | June 22, 2020 | wbjournal.com E N T R E P R E N E U R S & I N N O V A T I O N FOCUS M ore than two years have passed since entrepreneur Ross Bradshaw embarked on the licensing process to open New Dia, a recreational cannabis dispensary in Worcester. Now, with a provisional license in hand, he hopes to receive final licensure – the final OK before opening – for his 118 Cambridge St. shop by August. When New Dia opens its doors to the public, the store is set to be the first minority-owned dispensary to open in Central Mass., and only the second or third in the state. While it sounds monumental – and it is – the development is long overdue in an industry, on paper, is supposed to consider and prioritize the economic interests of minorities and communities disproportionately impacted by the War on Drugs, as was stated in the 2016 ballot measure creating the industry. "I don't take pride in saying we're the first minority-owned [cannabis] business [in Worcester]," said Bradshaw, a black entrepreneur who grew up in the Washington Heights neighborhood. Despite the call for diversity in the industry's founding documents, the number of applicants of color to the Massachusetts Cannabis Control Commission has been small, due to the lengthy approval process with multiple local and state regulatory hurdles and the large startup costs needed at a time when banks aren't financing marijuana businesses. CCC has put programs in place to help promote diversity, but they have yet to yield a drastic change. In a state that is 20% people of color, according to the U.S. Census, 8% of recreational marijuana businesses licensees – either approved or pending – are minority-owned. Among all employees at Massachusetts recreational cannabis companies, 5% are black, despite black people making up 9% of the state's population. Considering the industry is supposed to factor in the impact of the War on Drugs – where African Americans made up 41% of drug sales arrests in 2014, according to the American Civil Liberties Union – the number of black people involved in the industry behind its goals. Regulations step in While the CCC promulgates regulations and guidance meant to prioritize diversity and equal access, some companies do not seem to care, said CCC Commissioner Shaleen Title. But those who disingenuously developed diversity plans, or who half- heartedly followed through with them may be in for a rude awakening when it comes time to submit progress reports demonstrating how those plans were implemented, Title said. "Some companies might have mistakenly thought all they had to do was hire a consultant to write a sufficient diversity application for their initial application and never think about it again," Title said in an email interview. "Some companies can't even do that. We repeatedly get diversity plans listing their goal as 'Hiring 10% women and/or minorities.' at's objectively ridiculous and embarrassing for them." Title said cannabis business owners are opening up shop in parts of the state where hiring racially diverse staff members may be difficult because of the area's demographics. In that situation, employers can focus on other areas where diversity is needed. She said having gender equity is the bare minimum – women live everywhere. "It makes me furious when I see statistics that nationally, only 38% of cannabis companies have even one woman board member," Title said. "Massachusetts is doing better than the BY MONICA BUSCH Worcester Business Journal Staff Writer Still le behind Despite efforts to more closely align the recreational marijuana industry with its founding values, black cannabis licensees and employees are few and far between Ross Bradshaw, owner of the would-be Worcester recreational marijuana dispensary New Dia Recreational marijuana business breakdown The 2016 ballot measure which created the legal recreational industry called on regu- lators to have the industry most help the communities negatively impacted by the War on Drugs. To that end, the Massachusetts Cannabis Control Commission keeps track of which of the industry's business licensees are Disadvantaged Business Enterprises. Source: Massachusetts Cannabis Control Commission Business type Minority-owned Woman-owned LGBT-owned Veteran-owned Identified as belonging to two or more DBE groups Not a DBE % of all pending and approved business licensees (January 2019) 3% 2% 2% 1% 6% 85% % of all pending and approved business licensees (June 2020) 8% 4% 1% 1% 6% 80% PHOTO/MATTHEW WRIGHT

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