In its annual Cannabis Operator Sentiment and Business Conditions report, Whitney Economics suggests that just 24.4% of cannabis businesses in… Read More
In its annual Cannabis Operator Sentiment and Business Conditions report, Whitney Economics suggests that just 24.4% of cannabis businesses in the U.S. turn a profit, down 42% from the year prior.
In a statement, Beau Whitney, founder of Whitney Economics, said that by conducting the survey, the firm “strives to bridge the gap between the theories of business economics and the daily lives of operators within the cannabis industry.”
The survey found that “over 70% of respondents favored some form of limited cannabis licensure structure, despite many of them coming from unlimited license states.”
“Operators continue to be impacted by taxes, strict regulatory rules, and lack of access to capital. Only one quarter (24.4%) of respondents reported profitable operations.” — Whitney Economics Q4’22 Cannabis Operator Sentiment & Business Conditions Survey Report
The report also suggests that “cannabis legislative and regulatory policies have remained static, focused more on tax generation than on creating a viable, business friendly environment.”
“Markets and business conditions have changed,” Whitney Economics said in a press release, “while regulatory policies have not.”
The report says that were state policies “more industry focused and supportive of business, respondents feel that market conditions and operator sentiment will improve.”
The survey measured shortages and surpluses in materials, services and labor inputs against future expectations.