72% of Cannabis Operators: Lack of Banking is Biggest Concern
Whitney Economics Report Finds Only 42% of Cannabis Businesses are Turning a Profit
31 Jan, 2022, 07:00 ET
PORTLAND, Ore., Jan. 31, 2022 /PRNewswire/ -- Whitney Economics, the leading economic consulting firm in the cannabis industry, has just released its latest report, U.S. Cannabis Business Conditions Survey Report. This report reveals how cannabis industry operators are viewing the success of the cannabis industry and what factors are limiting their growth. Their number one concern is a lack of banking or financial services then followed by market volatility, big business competition, and taxes.
"Operators are kept up at night worrying about how to survive in an environment where there is little support, extremely strong competition from illicit dealers from one side, and the existential threat of corporate competition on the other. The only solution for operators is to advocate for a level playing field and hope that reform will occur sooner, and not later," - Beau Whitney
The objective of this survey is to establish a baseline of data and to identify and measure the successes and the challenges that operators in the industry are facing. The 20-question survey was deployed throughout October 2021, received responses from operators and stakeholders in 20 states, and examined policy, regulatory issues, industry successes and overall industry sentiment. This is the first in a series of ongoing quarterly economic conditions surveys.
In traditional industries, business confidence is a leading economic indicator that is useful for accurately monitoring the current economic situation and providing advanced warnings about potential inflection points in the economy. In the context of U.S. cannabis, low confidence could portend a shift in investment strategies or a decline in business health in general.
Other key findings contained in the report:
- Only 42% of respondents are turning a profit. In terms of profitability, women respondents and non-white respondents are faring much worse than white, male respondents.
- Lack of banking, market volatility, and state & federal taxation are the key issues facing cannabis operators.
- The concerns of the industry are weighing heavier on the minds of operators than are the successes, and this is impacting industry sentiment.
More details can be found in the full report on the Whitney Economics website. If you are a reporter and would like a copy of the report, please reach out to Gretchen Gailey at 202.489.3821 or [email protected]. If you would like to speak with an analyst at Whitney Economics, please contact Beau Whitney at 503.724.3084 or [email protected].
About Whitney Economics:
Whitney Economics builds robust, data-driven economic models for hemp and cannabis operators, investors & regulators. With decades of experience, ongoing data creation and aggregation processes, and boots-on-the-ground resources around the world, Whitney Economics creates value through detailed insights, granular analyses & thoughtful projections.
SOURCE Whitney Economics
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