Worcester Business Journal

wbjournal.com | March 24, 2025 | Worcester Business Journal 21 Don't let big cannabis crush small business BY RUBEN SEYDE, KOBIE EVANS, & DRUDYS LEDBETTER Special to WBJ M assachusetts' cannabis industry was founded on promises of equity and opportunity for communities harmed by the War on Drugs. Yet, new legislative proposals threaten to dismantle these commitments by removing ownership caps, paving the way for large corporations to dominate the market. Eight bills introduced this session would li ownership limits, giving multistate operators more control. e Mass. Cannabis Equity Council represents communities this industry was designed to upli. Our businesses are proof of what ownership limits make possible. Navigating the cannabis industry as small business owners is very challenging. Building Pure Oasis, Boston's first Black-owned dispen- sary, meant years of overcoming regulatory barriers and raising capital. Without ownership limits, we would have stood no chance against corporate giants. Liing ownership limits would let MSOs dominate through wholesale purchasing power, predatory joint venture arrangements, and driving away new investors. We lack unbiased data on the state of industry equity. Without metrics and community dialogue, decisions risk being made in the dark, eroding trust and local voices. Delivered Inc., a Latino-owned cannabis delivery busi- ness in Clinton, embodies what local control should look like. Our business reinvests in the community and creates good-paying jobs. But when large corporations dominate, wealth leaves the community. Ownership limits ensure the industry's wealth benefits local economies and that diverse, independent businesses can continue to thrive. Ownership caps are not bureaucratic red tape; they are essential for fostering competition, equitable opportuni- ties, and keeping wealth in local communities. Massachusetts' social equity programs are just begin- ning to bear fruit. Delivery services are finding their footing, grants are rolling out from the Social Equity Trust Fund, and social consumption sites are on the horizon. MCEC urges lawmakers to maintain current owner- ship limits, improve transparency on license ownership, establish a tip line for reporting violations, and pass bills that strengthen the equity and the industry. Ruben Seyde is co-owner of Delivered Inc. cannabis delivery company in Clinton. Drudys Ledbetter is co-owner of Boston-based dispensary Zèb Boutique. Kobie Evans is co-owner of Boston-based dispensary Pure Oasis. DEI policies help businesses succeed Ruben Seyde C learly, a firestorm is encompassing diversity, equity, and inclusion initiatives across public and private sectors. But it doesn't have to. Whether your own perspective is these policies conflict with a merit-based approach to hiring and promoting staff or you see them as building a stronger workforce and better serving a diverse set of customers, there is quite a bit of common ground. Ultimately, these policies are about maximizing companies' opportunities for revenue and profits, better serving their customer bases, and building stronger workforces. For this edition's cover story "United force" on page 8, WBJ Staff Writer Mica Kanner-Mascolo sits down with the leaders of three Central Mass. businesses who are sticking with DEI, despite potential threats to their revenues from government funding: construc- tion firm Fontaine Bros., behavioral health provider Spectrum Health Systems, and Edward M. Kenne- dy Community Health Center. While all three are somewhat insulated from threats to cut government funding, each of these organizations still are risking significant revenues by maintaining their efforts in the face of some significant political headwinds. Despite this, all three made it abundantly clear that these policies are woven into the fabric of their com- panies and greatly contribute to what makes them successful, and removing DEI from their business framework would cause substantial harm. At Spectrum Health, President & CEO Kurt Isaac- son said its DEI efforts not only boost employee mo- rale, but they help the company provide better care to its clients, as patients are more likely to report better experiences with providers who have similar lived experiences. At Fontaine Bros., CEO David Fontaine sees DEI initiatives as the company's responsibility to provide opportunities to people representing the community. Since that helps Fontaine employ people from a range of backgrounds, the company can better meet the needs of the communities it serves. And like other community health centers, Kennedy Health was founded on the principle of providing care in an in- clusive way to those in need, regardless of their ability to pay. Removing DEI would be akin to reversing the center's entire mission, said CEO Steve Kerrigan. While DEI initiatives can cover multiple aspects of business operations, much of their focus over the last five years has been on workforce development: recruiting, retaining, and promoting. When well executed – and there are certainly many examples of poorly executed programs – DEI efforts tap into un- derutilized segments of the population and enhance education, training, and development opportunities so companies can boost the overall quality of their workforces and reduce turnover. Since unemploy- ment in Massachusetts has hovered around 4% or less for nearly this entire decade, few companies have been immune to workforce shortages and higher turnover rates, which carry a high cost. Some firms have abandoned or sidelined DEI efforts due to a lack of results, others have modified or dramatically reduced those efforts due to political pressure or funding threats. Yet, many have found their company is stronger and their customers are better served from their efforts to broaden and diversify their workforce and operations. Maintaining policies that help businesses succeed in a competitive market should be a no-brainer. The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. W W Kobie Evans Drudys Ledbetter

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