How States Are Trying to Fix Cannabis Industry Inequality | Research

The takeaway

Most states with legal cannabis have social equity programs, but the gap between policy design and actual outcomes remains wide.

Anyone following cannabis legalization policy, social equity advocates, state regulators designing or evaluating equity programs.

What the researchers found

This multi-state analysis examined social equity entrepreneurship initiatives across all 17 states with legal non-medical cannabis retail as of May 2025. Eleven states reserved a set number or percentage of licenses for social equity applicants, while others specified particular license types or made certain categories available.

The study found significant variation in how states define eligibility, structure their application processes, and provide financial or technical support. Some states offered training programs, fee waivers, or access to capital, while others had minimal infrastructure beyond the license reservation itself.

Outcome data — where available — showed that the share of total licenses actually held by social equity entrepreneurs varied widely. Several states had issued far fewer social equity licenses than their programs envisioned, and demographic breakdowns of license holders by sex, race, and ethnicity revealed persistent gaps in representation despite the stated goals of these initiatives.

Why it matters

Cannabis prohibition disproportionately impacted communities of color through arrest and incarceration rates. As legalization creates a multibillion-dollar industry, social equity programs aim to ensure those communities can participate in the economic benefits. This study provides the first systematic comparison of how those programs are actually structured and performing across states.

The numbers in context

17 states analyzed. 11 states reserved a number or percentage of licenses for social equity entrepreneurs. Data on demographic breakdowns of license holders (by sex, race, and ethnicity) were collected where states made them available.

How the study worked

Mixed-methods study using publicly available data from all 17 states with legal non-medical cannabis retail. Researchers collected information on program design features (license types, selection processes, eligibility criteria, training and financial support) and outcomes (applications submitted, licenses issued, demographic breakdowns of license holders).

Who was studied

17 states with non-medical cannabis retail as of May 2025.

What this study cannot tell us

Relied on publicly available data, which varied in completeness across states. Some states did not report demographic breakdowns of license holders. The study could not assess program effectiveness in terms of business viability or long-term success of social equity licensees. Rapidly evolving regulations mean findings represent a snapshot.

How to read the evidence

Observational study using publicly available policy and outcome data — provides a descriptive snapshot but cannot establish which program features cause better outcomes.

When this study was published

Published in 2026 with data current through May 2025, making this one of the most up-to-date assessments of cannabis social equity programs available.

The bigger picture

The cannabis industry's rapid growth has created a tension between legalization's economic promise and the legacy of enforcement that fell heaviest on minority communities. This research shows that while nearly every legal state acknowledges this tension through some form of social equity program, the translation from policy intent to measurable outcomes is uneven — a pattern that mirrors broader challenges in equity-focused policy implementation.

Replication

Not stated in abstract.

Funding

Not reported in abstract.

Conflicts of interest

Not reported in abstract.

Questions still open

Which specific program design features — reserved licenses, fee waivers, capital access, training — are most strongly associated with higher social equity participation? How do social equity businesses perform financially compared to non-equity licensees over time?

Read the original research

State Initiatives to Promote Cannabis Industry Entrepreneurship Among Disproportionately Impacted Communities: A Multi-State Analysis.

Journal of public health management and practice : JPHMP

The Journal of Public Health Management and Practice is a respected publication focusing on public health policy and practice.

View on PubMed ↗Publisher’s paper ↗

Citation

Chakraborty, Rishika; Speer, Morgan; LoParco, Cassidy R; Yang, Y Tony; Berg, Carla J. (2026). State Initiatives to Promote Cannabis Industry Entrepreneurship Among Disproportionately Impacted Communities: A Multi-State Analysis.. Journal of public health management and practice : JPHMP. https://doi.org/10.1097/PHH.0000000000002317