Minnesota cannabis license delays the delay of small businessmakers

The small business owners of Minnesota express growing frustration about delays in the state of cannabis license process of the state, which hinder their ability to enter the legal market. Despite the legalization of leisure marijuana in 2023, the introduction of retail licenses was slower than expected, so that many entrepreneurs were left in the suspension.

License delays affect entrepreneurs

Business owners such as Andrew Caruthers, who runs Twin Cities in Golden Valley with high cities, have invested significant resources that are preparing for the legal market. Caruthers has spent around 50,000 US dollars to prepare his business to sell cannabis products. However, since the licensing is still pending, it is uncertainty when he can start selling. “I might think at first six months … I thought the summer of last year, we were almost safe,” said Caruthers.

Consider the supply chain

The Office of Cannabis Management (OCM) estimates that Minnesota needs 1.5 million square foot cannabisan construction space to meet demand. Currently, only 69,000 square meters are available, so that after the retail trade begins, the concerns about the potential product shortages. Caruthers expects a slow rollout and fears that the first shares with delays in the refill could be sold out quickly.

Reimbursement inquiries and business decisions

The uncertainty has led to over 400 applicants requested reimbursements for their application fees of more than 1.5 million US dollars. Entrepreneurs such as Matt Whittaker, who plan to open a cannabis test laboratory, have decided to withdraw from the market due to the longer delays and the financial burden. Whittaker invested at least 20,000 US dollars in preparation, but came to the conclusion that the continuing delays made the company unsustainable.

Steps to progress

Despite the setbacks, there are signs of progress. The OCM has completed the license rules and the interim manager Eric Taubel stated that licenses would be issued in the coming weeks. In particular, microbust can benefit from this development because they can progress in the license process without waiting for a lottery system.

Despite the present licenses, the limited cultivation capacity indicate that the supply problems can remain, which may influence the availability of products in the early phases of market operation.