Introduction
Marijuana (cannabis) is one of the most often utilized psychoactive substances. Cannabis is taken frequently by more than 20 million individuals in the United States and Europe and millions more in other areas of the globe, despite being banned in most nations (Iversen 21). However, thousands of individuals with AIDS and other severe disorders have begun unlawfully smoking marijuana to alleviate their suffering, notwithstanding the dearth of medical proof to support this notion (Iversen 21). As such, it is critical to anticipate any potential difficulties while working in a sector where laws cause frequent change. Hence, challenges facing the cannabis industry can be attributed to its influx in legalization related to massive utilization in various facets.
The Challenges
The cannabis industry’s expansion may have the same effect as a significant shift in a different area. It indicates significantly minimal government interference in the cannabis industry’s corporate growth after its legalization in various nations and states. Legislators had to balance a high enough tax to generate money and a low enough fee to lure individuals away from the illegal market (Robertson and Thyne). Since illicit marijuana would cost significantly less, the black markets will continue to be quite successful. Illegal trade will gradually disappear from the economy and be replaced by the legal market, which will be far more common.
Human Resource Quality
Employers must address worries about fair salaries, equal chances, and other human resources issues affecting regulated enterprises in light of upcoming government regulation on the workforce. The sector will suffer if marijuana is approved as a legal drug in the country’s economy; nonetheless, it must conform to be regarded as a societal component (“Cannabis Industry Challenges”). Cannabis growers and business owners need to contemplate how to retain good workers contented in their positions. Keeping staff happy, educated, and motivated is an excellent method for new cannabis firms to be competitive; therefore, to achieve such, it means industries will have to incur extra cost in rendering such programs to perfection, reducing the industry’s profit.
Poor Waste Management of Cannabis
Legalizing cannabis growing is causing a waste management issue in production industries. Large amounts of waste plant material are produced when marijuana is grown commercially. The distribution and disposal of cannabis remains are unique and necessitate special authorization and adherence; enterprises must conform to local environmental laws and different legal obligations (“The 5 Biggest Challenges of Cannabis Cultivation”). Inability to comply with cannabis waste disposal regulations may result in monetary fines or the termination of a growing license in various states and nations. Incineration is the most efficient, biosecure, and secure way to deal with cannabis waste.
Stigma among Medical Community
The number of medical professionals and healthcare institutions that support the use of marijuana is at an all-time high right now. However, a sizable proportion of the general population believes that cannabis and marijuana used for medicinal purposes should be made illegal (“Cannabis Industry Challenges”). Considering the negative connotations associated with hospitals, hospitals cannot get government money if they want to engage in cannabis promotion. This is a significant obstacle that any proprietor operating a company in this sector should be aware of in order to succeed.
Fewer Banking Opportunities
The problems imposed upon the cannabis sector by the media and federal authorities are said to be the most significant challenges for firms operating in the cannabis market insurance journal. Restrictions make challenging barriers that firms face even more difficult. Finding a banking option acceptable for the cannabis industry might be a challenge for any company (“Cannabis Industry Challenges”). Because banks backed by the federal government will not cooperate with companies in the cannabis business, this creates a hurdle for companies with a lower market share. As a result, endeavors supported by private money remain in the majority.
Operating in Cash
Operating in cash, many financial institutions are unable to lend money or take deposits since doing so would be considered a form of financial fraud. This is due to the federal government has classified the plant as a controlled substance. Partnering with any bank that the FDIC insures becomes more difficult due to this obstacle (“Cannabis Industry Challenges” The federal rules in place will determine the possibility of financial institutions cooperating with enterprises operating in the marijuana market.
An Ever-Hanging Landscape
Many nations and states have varying dissemination, usage, legality, and cultivation of marijuana legislation. As the business continues to see the end of some stringent restrictions, implementing new ones seems like navigating a minefield (Chriskydd). This requires constant vigilance to avoid making errors that violate the ever-changing rules. There is a considerable probability that cannabis enterprises will merge with existing brands that are connected. For example, alcohol and cigarette firms would welcome a share of the pie (Chriskydd). Despite the fact that this seems to be excellent news for the sector, partnerships increase uncertainty and unpredictability. Add to it the legitimacy and financial issues, and the cannabis business is not for the faint of heart.
Conclusion
In summary, despite reaching many significant milestones after its legalization in various jurisdictions, investors in cannabis should brace themselves for forthcoming difficulties. Thus, to maintain financial stability in a highly competitive field, it is necessary to be one step ahead of the competition continually. Therefore, cannabis organizations should become used to the ever-changing rules of marijuana. Although it could take a considerable time to achieve apparent progress in the market, now is the best time to secure a key position in a business that is fast reaching its retirement age.
Works Cited
“Cannabis Industry Challenges and Marketing Opportunities in 2023 by Huumon Creative.” Huumon Creative. 2019. Web.
“The 5 Biggest Challenges of Cannabis Cultivation | INCINER8.” 2021. Web.
Chriskydd. “4 Main Challenges Affecting Cannabis Industry in 2021.” Thecoastnews. 2021. Web.
Iversen Leslie L. The Science of Marijuana 3rd ed, Oxford University Press Incorporated 2019.
Robertson, Kirsten, and Maree Thyne. “Legalization of Recreational Cannabis: Facilitators and Barriers to Switching from an Illegal to a Legal Source.” Preventive Medicine Reports. 2021. Web.