In the evolving cannabis landscape, social equity businesses in Massachusetts are fighting to thrive and ensure their presence in the industry. These companies, mostly owned by Black and Brown entrepreneurs from disproportionately impacted communities such as Boston, Quincy, and Worcester, are not just pursuing profits — they are advocating for change, equity, and opportunity in a space that has historically marginalized them.
A Vision for Social Equity: The Fight for Fair Regulations
Massachusetts has been at the forefront of pushing for social equity in its cannabis industry. Aspiring entrepreneurs from disproportionately impacted communities have long paid close attention to cannabis regulations. Many of them started with limited resources, but a deep desire to seize the opportunities presented in the emerging market. Despite facing numerous roadblocks, these entrepreneurs continue to advocate for changes that could foster a more inclusive environment.
One of the biggest regulatory victories for these businesses has been the reform of the two-driver rule. Until now, the state required two drivers for any delivery vehicle carrying cannabis valued between $5,000 and $10,000. This regulation, along with restrictions such as prohibiting deliveries to hotels, public housing, and towns with moratoriums, placed an undue burden on equity businesses. These restrictions, combined with tight margins, led some to shut down or decide not to renew their licenses. However, social equity businesses have continued to push for reform, knowing that change is possible.
In December 2023, the Massachusetts Cannabis Control Commission (CCC) finally voted to modify the two-driver rule. The change, expected to be implemented within a year, allows delivery vehicles carrying less than $5,000 in product to operate with only one driver. This modification comes as a significant relief to delivery operators, many of whom had struggled under the previous restrictions. With thousands of cannabis deliveries completed and minimal incidents reported, data proved that one-driver operations are both safe and efficient.
The Impact of Social Equity Fund and Ongoing Advocacy
While regulatory victories are crucial, financial resources remain another essential component of sustaining social equity businesses. In September 2024, the state opened applications for a $24 million Social Equity Fund designed specifically to support businesses from disproportionately impacted communities. With applications closing in mid-October, this fund presents a unique opportunity for these entrepreneurs to scale and grow their operations.
The availability of grant funds and regulatory changes, such as the two-driver rule reform, have created a sense of cautious optimism among social equity businesses. However, they know that the fight is far from over. Business owners like Chris Fevery of Your Green Package, Devin Alexander of Rolling Releaf, and Gabe Vieira of Zyp Run, all from disproportionately impacted communities, have been vocal about the need for ongoing regulatory changes. They attended the CCC public meeting in October to advocate for fairer regulations and ensure that social equity businesses have the support needed to thrive.
Their efforts have not gone unnoticed. As the Massachusetts cannabis market continues to grow — it has generated more than $7 billion in sales statewide since 2018 — these equity businesses are working hard to secure their piece of the pie. Despite the vast revenue generated by the industry, only a fraction is controlled by social equity businesses and an even smaller portion by people of color. This is why the advocacy for regulatory reform and equitable financial support is so critical.
From Delivery Couriers to Delivery Operators: A Journey of Advocacy and Growth
From Delivery Couriers to Delivery Operators: A Journey of Advocacy and GrowthThe current success of social equity cannabis businesses in Massachusetts can be traced back to their early advocacy efforts. In 2019, several business owners raised concerns with regulators about the limited profitability of delivery courier licenses. These licenses only allowed businesses to provide delivery services for retail stores, without the ability to store inventory or directly serve customers. This model created slim margins, making it difficult for businesses to sustain themselves.
As a result of these advocacy efforts, the delivery operator license was introduced. This license allows businesses to store cannabis products and sell them directly to consumers, offering greater control over the customer journey and more significant revenue opportunities. The introduction of the delivery operator license marked a crucial turning point, enabling equity businesses to shift from simply offering services to controlling their own products and margins.
During an October 2024 CCC meeting, social equity businesses advocated for even further changes. They argued that the exclusivity period for cannabis delivery operators, which is currently limited to equity businesses, should be extended. This exclusivity period is crucial for ensuring that these businesses have a fair chance to compete in the maturing market before larger, better-funded companies move in. Extending the exclusivity period would allow these businesses to fully take advantage of the opportunities available and build sustainable, profitable operations.
Looking Ahead: Optimism Amidst Challenges
Despite the numerous challenges facing social equity cannabis businesses, these entrepreneurs remain hopeful. Their determination, resourcefulness, and commitment to advocacy have already led to important victories, both in terms of regulations and financial support. With the new Social Equity Fund and changes like the one-driver rule, these businesses are finally starting to see the upside of their hard work.
For people like Chris Fevery, Devin Alexander, and Gabe Vieira, the fight is personal. They are not only building businesses for themselves but are also paving the way for future entrepreneurs from their communities. Their efforts remind us that even in an industry as challenging as cannabis, persistence pays off. By working together and continuing to advocate for change, Massachusetts’ social equity businesses are setting the stage for a more inclusive, equitable future in the cannabis industry.
In a space where many give up on their dreams, these entrepreneurs are holding fast and fighting for the opportunity to thrive. Through hard work, collaboration, and unwavering commitment to equity, they are turning their vision into a reality.
