The Worst “What If”
Why Cannabis Businesses Fail by Carisa Rowe
M
aking the choice to launch a small business is one of the most exciting and terrifying times in an early-stage entrepreneur’s life. There are innumerable “what ifs”; imaginary situations that develop into fantasies about inconceivable success and nightmares about failure. The number of considerations for success can be daunting but many U.S. workers are eager to change their professional trajectories. Business ownership provides an alluring autonomy for industrious folks willing to step up to the unique challenges of building one’s own empire. Business ownership is a numbers game. The Small Business Administration reflects that 20% of new businesses fail before their first anniversary. By year five, 50% of the companies had closed permanently with only a third remaining in business at the ten-year mark.
Success rates in small business ownership are bleak but the promise of personal and professional freedom coupled with a sense of financial control make the gamble worth the risk. Entrepreneurs interested in joining the cannabis industry have big visions, too – visions that range from community wellness to legislative and punitive reform, to wealth and notoriety. Definitive statistics regarding the success and failure rate of cannabis business in the United States are unavailable as new markets open with every legislative session. The most comparable infrastructure and staffing model to the cannabis industry may be food and beverage. Both industries provide a service-based consumer model with massive overhead, including expirable goods, stringent regulatory oversight, and market fluctuations that are often dependent on mother nature. thechronicmagazine.com
NOVEMBER ISSUE 24
