Growing Marijuana Industry Struggles To Attract Employees Of Color

Feb 21, 2019

As marijuana becomes legal around the country, blacks and Latinos are often left out of new business opportunities. Advocates say people of color are often reluctant to join the growing legal marijuana economy because they were targeted far more often than whites during the war on drugs. Studies show members of such communities were arrested and jailed for illegal marijuana use far more often than whites.

As Massachusetts developed laws for legal marijuana, officials wrote what they claimed was a first-in-the-nation Social Equity Program explicitly to give members of those communities a leg up.

But this part of the state law isn't working — next to no black or Latino candidates have applied for licenses in Massachusetts.

They're scared of the government. - Sieh Samura

"They're scared of the government, man," said Sieh Samura, an outspoken cannabis activist. "This is still a new thing. And there's taxes, there's the government, there's all kinds of things, you know. Just because people say it's legal ... it's not welcoming for everybody."

Studies show that blacks and Latinos nationwide have been arrested and incarcerated for cannabis and other drug crimes at at least four times the rate of whites. The long-term effects of the war on drugs launched in the 1970s are still evident in many communities of color.

So, the city of Somerville, Mass., passed an ordinance requiring that 50 percent of recreational marijuana licenses go to black and Latino applicants.

"We want to make sure that everyone has a real authentic opportunity to participate in that economy in the future," said Somerville Mayor Joe Curtatone. "If not, we start to lose the fabric and soul of our community. And then social inequity becomes greater, becomes vaster, and we can't allow that to happen. We're a pro-growth community, but we want to make sure regular folks are able to participate in that."

Samura, an Iraq War veteran, said medical marijuana was a big help for him dealing with the effects of PTSD. As a black man, he sees himself as a marijuana pioneer from a community that has long been targeted. He says this fraught relationship between law enforcement and communities of color is why many black and Latino entrepreneurs are reluctant to start recreational marijuana businesses.

To be a model for others, Samura and his wife Leah created a recreational marijuana business called 612 Studios. For months they've been coming to a massive marijuana cultivation facility in Milford, Mass., to participate in The Sira Accelerator, a 12-week program designed to get more people of color into the industry by doing everything from raising money, to helping with marketing, packaging and distribution.

This program is run by Sira Naturals, which grows marijuana and creates products for its own medical dispensaries and some other recreational businesses. Mike Dundas, Sira Naturals' CEO, said the company wants to help longtime marijuana advocates, like the Samuras, or folks who have been dabbling in the illegal pot market.

"We see our program, the Sira Accelerator, as sort of offering a hand to those who've been operating — and have skill and passion and dedication to cannabis products — in the illicit marketplace, to come to the regulated side, to get on the books and help facilitate the start of their businesses," said Dundas.

In return for the advice and counsel, Sira takes just under a 1o percent stake in the new company.

Sira also hopes the accelerator will help it open a recreational shop in Somerville, where it already runs one of three medical dispensaries. The company can't get a recreational license until black or Latino entrepreneurs do because of the city's ordinance. Dundas, who is white, admits he's scrambling to find and mentor people of color who want to open businesses in Somerville to ensure that his company can open a retail shop of its own.

Karen O'Keefe, director of state policies with the Washington, D.C.-based Marijuana Policy Project, said there have been lots of attempts around the country to help candidates from black and Latino communities, but none have worked.

"None of the states have the kind of diversity that we would like to see in the cannabis industry," she said.

Some marijuana business owners have expressed frustration that states are "picking winners and losers" in the marijuana industry. But O'Keefe argued that this industry is different, given the ill effects of the war on drugs. The question remains, though, how best to level the playing field.

"States moving forward are going to look at what happened in Massachusetts," O'Keefe said, "why such good intentions didn't end up bearing as much fruit and as much diversity in the industry as was intended."

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