Worcester Business Journal

wbjournal.com | June 13, 2022 | Worcester Business Journal 21 e benefits of marijuana E D I T O R I A L V I E W P O I N T BY CHRIS HUDACH & CHRIS DELPHIA Special to WBJ The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. A T H O U SA N D WO R D S B Y R A M Ó N L . S A N D O V A L Despite concerns, small businesses see growth S mall business owners in Massachusetts and across the country are reporting inflation and supply chain disruptions are impacting their businesses in big ways, according to new research from Bank of America. Despite these difficulties, business confidence remains strong, with 64% anticipating their revenue will increase over the next 12 months. In addition, business owners are con- tinuing to recover from the pandemic, with more than three-in-five business owners (62%) feeling their business has fully or partially recovered. Nearly half (48%) cited increased consumer spending as critical to their recovery. Business owners are increasingly concerned about the impact of infla- tion, supply chain, and labor shortag- es, and these factors are leading them to make operational changes. Eighty-eight percent say inflation is impacting their business, causing them to raise prices, reevaluate cash flow and spending for the year ahead, lose sales, reduce business costs, and increase employee wages. And 76% of business owners say supply chain issues are impacting their business, causing them to raise prices, struggle sourcing products and supplies, and delay delivery of goods and services. Additionally, 41% say labor shortages are impacting them, causing them to work more hours due to staff shortages, struggle to fill job openings, reduce the prod- ucts they offer, raise wages, and lose customers. ough the market is difficult, small business owners can take action to mitigate these looming challenges. For example, business owners can increase prices relative to specific supply issues, rather than raising prices across the board, to avoid frustrating customers while still ac- counting for the impact of inflation and supply delays. Knowing supply chain disruptions are likely to persist, entrepreneurs should review their networks and consider expanding to include multiple suppliers. Offering tools like loyalty programs, honest shipping estimates, and accessible help lines are key to keeping customers happy. Business owners should focus on employee retain- ment. Offering competitive salaries and other incentives like flexible hours can keep employees satisfied. Business owners believe new technologies will be critical to risk reduction. Over the past 12 months, 70% of business owners have adopted new digital tools and strategies, including accepting more forms of cashless payments and online banking. Longer term, 44% of business owners plan to prioritize digital sales, and many believe cybersecurity and automation will be critical. Chris Hudach is vice president small business manager, and Chris Delphia is vice president small business banker for the New England region of Bank of America. W Chris Hudach I n 2018, before the first adult-use cannabis dispensaries had even opened, 46 Central Massachusetts cities and towns had either moratoriums or all-out bans against any mari- juana businesses opening in their communities. Today, that number sits at 15. at's a very solid turnaround for a product and an industry that had nearly 50 years of bias against it. Aer the Controlled Substances Act of 1970 classified marijuana as a Schedule 1 drug on par with heroin, LSD, and ecstasy, cannabis became a villain in our national story, as police departments assembled task forces to stop its distribution, schools preached against its use, and sales were relegated to a black mar- ket whose dealers risked lengthy incarcerations. Even as states, including Massachusetts, decriminalized its possession and then approved of its use for medical purposes, marijuana was still feared as a gateway drug and potential ruiner of the fabric of our communities. In 2016, mere months before Massachusetts voters would legalize recreational cannabis, Gov. Charlie Baker, Attorney General Maura Healey, and then Boston Mayor Marty Walsh teamed up in a Boston Globe op-ed to say the state should never legalize it and warned against the negative public health and safety impacts. None of that has come to pass. In the six years since adult-use cannabis was legalized and the four years since the first dispensaries opened, neither the areas around the shops nor the overall communities have descended into madness. Buying cannabis from a Massachusetts dispensary is similar to shopping at a very secure liquor store, where the employees are very knowledgeable about the various products they are selling. Legal adult-use marijuana has generated more than $3 billion in sales since late 2018, and the number grows each year, even with prices dropping as more competing dispensaries open. Any commu- nities choosing to ban marijuana companies now are basically just flying an anti-business flag. Despite the overall positive rollout, the industry isn't without its problems. e social justice and equity aspect written into the 2016 ballot initiative, saying the main purpose of the industry was to benefit those peo- ple and communities harmed by the War on Drugs, is trailing far behind that promise. e adult-use market is run by wealthy investors, and only 10% of business licensees are people of color, with even fewer meeting the definition of those harmed by the War on Drugs. Local governments who have decided to embrace the industry oen demanded a king's ransom in order for the individual business owners to secure the host community agreements necessary to receive their state operating licenses. Fortunately, the Massachusetts leg- islature is nearing a solution to reform these problems and more, by funding more programs for social equity applicants and limiting the amount of money a host community can demand. If approved, that measure would still need to be signed into law by Baker. Following his 2016 op-ed, Baker eventually did sign off on the 2017 bill that established the regulatory framework for marijuana legalization, so it appears he has at least somewhat embraced the benefits the industry can bring. He can do one better now and sign this new reform bill into law, further normalizing this nascent industry. W Chris Delphia

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