Minnesota’s small business owners are expressing growing frustration over delays in the state’s cannabis licensing process, which are hindering their ability to enter the legal market. Despite the legalization of recreational marijuana in 2023, the rollout of retail licenses has been slower than anticipated, leaving many entrepreneurs in limbo.

Licensing Delays Impact Entrepreneurs

Business owners like Andrew Caruthers, who operates Twin Cities High in Golden Valley, have invested significant resources preparing for the legal market. Caruthers has spent approximately $50,000 readying his store to sell cannabis products. However, with licensing still pending, he faces uncertainty about when he can commence sales. “I initially was thinking possibly six months… I thought summer of last year we would be open almost for sure,” Caruthers stated. 

Supply Chain Concerns

The Office of Cannabis Management (OCM) estimates that Minnesota requires 1.5 million square feet of cannabis cultivation space to meet demand. Currently, only 69,000 square feet are available, raising concerns about potential product shortages once retail sales begin. Caruthers anticipates a slow rollout, fearing initial stock may sell out quickly with delays in restocking. 

Refund Requests and Business Withdrawals

The uncertainty has led to over 400 applicants requesting refunds for their application fees, totaling more than $1.5 million. Entrepreneurs like Matt Whittaker, who planned to open a cannabis testing lab, have decided to withdraw from the market due to the prolonged delays and financial strain. Whittaker invested at least $20,000 in preparation but concluded that the ongoing delays made the venture untenable. 

Steps Toward Progress

Despite the setbacks, there are signs of progress. The OCM has finalized rules for licensing, and Interim Director Eric Taubel indicated that licenses would be issued in the coming weeks. Microbusinesses, in particular, may benefit from this development, as they can move forward in the licensing process without waiting for a lottery system. 

However, even with licenses forthcoming, the limited cultivation capacity suggests that supply issues may persist, potentially affecting the availability of products in the early stages of the market’s operation.