Whitney Economics, a cannabis economics data, consulting and research firm, recently reported that 24.4 percent of domestic cannabis businesses are profitable.
“By conducting this survey, Whitney Economics strives to bridge the gap between the theories of business economics and the daily lives of operators within the cannabis industry,” Whitney Economics Founder Beau Whitney said regarding the second annual Cannabis Operator Sentiment and Business Conditions survey report.
The annual survey of cannabis business licensees evaluates the manner in which cannabis industry operators view their success; what factors limit their growth; and provides an outlook of future industry expectations.
The report determined retailers and operators are feeling the pressure of rising costs and falling prices and have learned to do more with less; cannabis operators have more at risk in the wake of not having access to normal business protections; markets and business conditions have changed but regulatory policies have not; and more than 70 percent of respondents favored some form of limited cannabis licensure structure.
“Operators continue to be impacted by taxes, strict regulatory rules, and lack of access to capital,” the report noted.
According to Whitney Economics, cannabis legislative and regulatory policies have remained static, with the focus targeting tax generation rather than the creation of a viable, business friendly environment.