• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Leadership

Booming Pot Industry Offering Breaks to Entice Minority Entrepreneurs

By
The Associated Press
The Associated Press
Down Arrow Button Icon
By
The Associated Press
The Associated Press
Down Arrow Button Icon
May 31, 2017, 8:20 AM ET

Andre Shavers was sentenced to five years on felony probation after authorities burst into the house where he was living in one of Oakland’s most heavily policed neighborhoods and found a quarter ounce of marijuana.

After the 2007 raid, Shavers couldn’t leave the state without permission. He was subject to police searches at any time. He walked to the corner store one night for maple syrup and came back in a police car. Officers wanted to search his home again.

All the while, cannabis storefronts flourished elsewhere in a state where medical marijuana was authorized in 1996.

Now Oakland and other cities and states with legal pot are trying to make up for the toll marijuana enforcement took on minorities by giving them a better shot at joining the growing marijuana industry. African-Americans made up 83% of cannabis arrests in Oakland in the year Shavers was arrested.

“I was kind of robbed of a lot for five years,” Shavers said. “It’s almost like, what do they call that? Reparations. That’s how I look at it. If this is what they’re offering, I’m going to go ahead and use the services.”

The efforts’ supporters say legalization is enriching white people but not brown and black people who have been arrested for cannabis crimes at far greater rates than whites.

Recreational pot is legal in eight states and the nation’s capital. California, Maine, Massachusetts and Nevada approved ballot questions in November. They join Colorado, Washington, Oregon, Alaska and the District of Columbia, which acted earlier. Twenty-nine states permit medical marijuana.

Massachusetts’ ballot initiative was the first to insert specific language encouraging participation in the industry by those “disproportionately harmed by marijuana prohibition and enforcement.” The law does not specify how that would be accomplished.

In Ohio, a 2016 medical pot law included setting aside 15% of marijuana-related licenses for minority businesses. In Pennsylvania, applicants for cultivation and dispensing permits must spell out how they will achieve racial equity.

Florida lawmakers agreed last year to reserve one of three future cultivation licenses for a member of the Florida Black Farmers and Agriculturists Association.

There have been setbacks as well. The Maryland General Assembly adjourned last month without acting on a bill to guarantee a place for minority-owned businesses that were not awarded any of the state’s initial 15 medical marijuana cultivation licenses.

There’s no solid data on how many minorities own U.S. cannabis businesses or how many seek a foothold in the industry. But diversity advocates say the industry is overwhelmingly white.

The lack of diversity, they say, can be traced to multiple factors: rules that disqualify people with prior convictions from operating legal cannabis businesses; lack of access to banking services and capital to finance startup costs; and state licensing systems that tend to favor established or politically connected applicants.

“It’s a problem that has been recognized but has proven to be relatively intractable,” said Sam Kamin, a professor at the University of Denver Sturm College of Law who studies marijuana regulation.

In 2010, blacks constituted 14% of the U.S. population but made up more than 36% of all arrests for pot possession, according to an American Civil Liberties Union study released in 2013 . The report found African-Americans were nearly four times more likely than whites to be arrested for cannabis possession.

That study did not report Latino arrests because the FBI data on which it was based did not track Hispanics. But a 2016 study by the ACLU of California and the Drug Policy Alliance found Latinos were cited at 1.4 times the rate of white people for marijuana infractions in Los Angeles and 1.7 times the rate in Fresno.

The Minority Cannabis Business Association has drafted model legislation for states considering new or revised marijuana laws, including language to expunge pot-related convictions and to encourage racial and gender diversity among cannabis businesses.

“The people who got locked up should not get locked out of this industry,” said Tito Jackson, a Boston city councilman and mayoral candidate. He suggests Massachusetts give licensing preference to groups that include at least one person with a marijuana conviction.

The Oakland City Council in April voted to set aside half of medical cannabis licenses for people who have been convicted of a marijuana crime or who lived in one of 21 police districts with disproportionately high marijuana arrests. Candidates must meet income restrictions.

Complicating matters is that marijuana remains illegal under federal law—a fact seen as unlikely to change under President Donald Trump. That makes most banks reluctant to lend money to startup cannabis businesses, which often must rely instead on personal wealth.

An Oakland-based nonprofit known as The Hood Incubator provides training and mentoring to minority cannabis entrepreneurs.

“Maybe they lack the money to get into the industry or they might have, you know, gotten arrested in the past for oh, what do you know? Selling weed. And now they can’t actually get into the legal industry,” said Ebele Ifedigbo, one of the group’s three co-founders.

Under Oakland’s program, applicants who don’t qualify for a so-called equity license can still get preference if they “incubate” a minority-owned business with free rent or other help.

Dan Grace, president of Dark Heart Nursery, is nervous about finding a partner but ready to make the program work. Debby Goldsberry, Magnolia Wellness dispensary’s executive director, said the industry is primed to change and expand.

“Why? Because there’s a prohibition that’s been out there targeting people in our communities in Oakland, and it’s very unfair,” she said.

Oakland hosted a business mixer this month that attracted several hundred people, including retirees who have never smoked a joint and people who served time for marijuana offenses and established cannabis businesses.

That group included Shavers, who hopes his drug-related record helps him get office space and investors to grow his delivery service, The Medical Strain.

“It’s a blessing in disguise,” he said, “but not the blessing I would recommend.”

About the Author
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Jensen Huang says some CEOs have a ‘God complex’ when it comes to AI apocalypse warnings, which can create shortages of critical workers
AIchief executive officer (CEO)
Jensen Huang says some CEOs have a ‘God complex’ when it comes to AI apocalypse warnings, which can create shortages of critical workers
By Jason MaMay 2, 2026
1 hour ago
conway
North AmericaObituary
Gerry Conway, comics legend who created the Punisher, dies at 73
By Claire Rush and The Associated PressMay 2, 2026
2 hours ago
bard
C-SuiteJeffrey Epstein
Bard College president steps down, months after his deep ties to Jeffrey Epstein were revealed
By The Associated PressMay 2, 2026
2 hours ago
shoplift
EconomyGen Z
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
By Jacqueline MunisMay 2, 2026
3 hours ago
First Watch CEO Chris Tomasso holding his fist up at the New York Stock Exchange
SuccessView from the C-Suite
CEO writes hundreds of thank you notes to staff and still eats in the break room—which ‘always, for whatever reason, blows new employees away’
By Preston ForeMay 2, 2026
3 hours ago
Suze Orman once said earning more than $800,000 would make her ‘sick to my stomach’—but that turning down Oprah Winfrey cured her self-doubt
SuccessHow I made my first million
Suze Orman once said earning more than $800,000 would make her ‘sick to my stomach’—but that turning down Oprah Winfrey cured her self-doubt
By Orianna Rosa RoyleMay 2, 2026
3 hours ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
1 day ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
2 days ago
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
Law
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
By Catherina GioinoMay 1, 2026
1 day ago
Current price of oil as of May 1, 2026
Personal Finance
Current price of oil as of May 1, 2026
By Joseph HostetlerMay 1, 2026
1 day ago
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
5 days ago
The U.S. economy is booming — just not where 50 million Americans live
Commentary
The U.S. economy is booming — just not where 50 million Americans live
By Derek KilmerMay 1, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.