What is a Marijuana Microlicense?

The cannabis industry is innovating – and now something new has emerged – the microlicense!

The cannabis industry needs to innovate. Considering regulations, zoning and banking restrictions in the context of building public support, you have to be smart. The latest idea is microlicensing. What is a marijuana microlicense and what does it do? A key factor in this development is access to a growing industry with a low investment threshold. This is an advantage for greater social justice.

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Michigan started the microlicensing trend to give more people the opportunity to start a business without having to have large resources. It allows business owners to grow marijuana, process marijuana, and sell cannabis-infused products to adults 21 and older without depending on other suppliers. However, a marijuana microbusiness in Michigan is not permitted to sell or transfer marijuana or marijuana-infused products to other licensed recreational marijuana establishments. Additionally, they are not allowed to sell their seeds to other marijuana growers. Essentially, it's about enabling a standalone marijuana business model independent of other marijuana establishments. So imagine a good food truck model where you go where your customers are, develop your own products (don't buy from Costco or Trader Joes and reheat them), and sell directly to a small crowd.

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Currently, Cananbis microbusiness licenses are offered in Oregon, California, Massachusetts, Michigan, New Jersey and New Mexico. Missouri just started the program and has had some problems. Their cannabis regulators could revoke 11 of the 48 social equity cannabis licenses issued in October after finding they did not meet licensing requirements. They appeared to have misrepresented who was supporting them and what the company's longer-term plans were.

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Arizona is now considering incorporating it into the corporate mix. Marijuana sales reached $1 billion in 2023, making it a new cash cow for companies and government coffers. Success seems to consist in the ability of a company to grow and prosper.