Breaking Into the Cannabis Industry: Opportunities for Black Entrepreneurs

Featuring Adjwoa Tyehimba

As the host of “Brick by Brick,” a podcast by The BrownStone Experience, I recently sat down with Adjwoa Tyehimba, a cannabis industry expert with a master’s degree in cannabis business. Our conversation explored the rapidly evolving cannabis landscape, the challenges faced by Black entrepreneurs in the industry, and the various opportunities available despite significant barriers to entry.

The Growing Cannabis Market

The cannabis industry has expanded dramatically in recent years, with recreational use now legal in approximately 28-32 states across America. This expansion has created a multi-billion dollar industry, but as Tyehimba pointed out during our conversation, “It’s predominantly operated by white large corporations.” This disparity is particularly troubling considering the historical context of cannabis criminalization in the United States.

“When you look at the people who were affected by the War on Drugs, whose communities and families were destroyed like ours… they’re not getting locked up for it [anymore], but they’re making money off of it,” Tyehimba explained, highlighting the racial inequities that persist in the industry.

Barriers to Entry in Texas

As we discussed Texas moving toward potential legalization, the barriers to entry remain significant for Black entrepreneurs. Tyehimba revealed that obtaining a dispensary license alone in Texas could cost around half a million dollars, with the full seed-to-sell operation potentially requiring upwards of $5 million in startup capital.

“In Texas, you’re going to have to own every single aspect of your operation, from seed to sell, from the farm to the dispensary,” Tyehimba explained. This vertical integration requirement creates substantial financial hurdles that most individual entrepreneurs cannot overcome without significant backing.

Strategies for Breaking Into the Industry

Despite these challenges, Tyehimba suggested several approaches for Black entrepreneurs looking to enter the cannabis space:

Crowdfunding and Resource Pooling: “I think crowdfunding for the African-American community is going to be the biggest thing if we want to own capital in the marijuana industry,” Tyehimba advised. By combining resources, Black entrepreneurs can overcome the substantial financial barriers to entry.
Team Building Based on Strengths: “Put people where their strengths are,” Tyehimba recommended. “If somebody is strong in gardening or farming, put them on the seed level. If somebody knows how retail goes, put them at the dispensary level.”
Background Checks and Transparency: Clean backgrounds are crucial for licensing approval. “Just being honest upfront… when you put a lot of money into something, you want to trust that the people know what they’re talking about and represent you well.”

Career Paths Beyond Ownership

For those who may not have access to ownership-level capital, I asked Tyehimba about other career opportunities in the cannabis industry. She shared numerous possibilities:

Entry-Level Cultivation: “I have a friend who lives in Colorado. They water marijuana plants for $17 an hour,” Tyehimba shared, noting this as a solid entry point.
Science and Development: Chemists can work on developing new strains and products.
Marketing and Design: Social media specialists and package designers are in high demand.
Testing and Quality Control: Laboratory technicians ensure product safety and consistency.
Transportation and Logistics: Moving product safely and legally requires specialized expertise.

The Importance of Education and Destigmatization

During our discussion, Tyehimba emphasized education as crucial to the future of cannabis in Black communities. “I do believe in marijuana education. I do not believe children should be smoking it at a young age,” she stated, adding that teaching young people about legal career opportunities in cannabis can help steer them away from illegal activities that could lead to incarceration.

The stigma around cannabis remains complicated. While recreational use has become more socially acceptable, there’s still resistance, particularly from those who’ve seen family members incarcerated for cannabis-related offenses during the War on Drugs. “When you tell somebody you’re making money off of it, they kind of give you a side eye,” Tyehimba noted.

Keys to Success as a Black Entrepreneur

Before concluding our interview, I asked Tyehimba to share three essential tools for success as a Black woman entrepreneur:

Prioritize Rest: “Sometimes we become workaholics, and if you don’t get enough rest, it’ll show.”
Stay Connected to Community: “Don’t forget where you came from… Don’t leave your community behind because they will humble you, and they also got your back.”
Practice Self-Love: “You’re going to deal with a lot of negativity… just being a black woman. Self-love, knowing who you are, knowing where you came from, loving your culture, and just doing what’s best for you and your community.”

As the cannabis industry continues to grow, I believe creating pathways for Black entrepreneurs to participate meaningfully remains essential—not just for equity’s sake, but to ensure that those most affected by cannabis criminalization can benefit from its legalization.