Time for Canada to build on the B.C. Bud brand
Pot entrepreneurs should be encouraged, says Paul Clark.
Entrepreneurial ism and innovation are key ingredients to Canada’s domestic economy and its international competitiveness. For example, France has a vibrant wine industry, Cuba is recognized for its cigars, China has a strong manufacturing role, and Italy and France have their fashion brands.
To this end, the Government of Canada invests a considerable amount of money and effort into sparking and supporting entrepreneurial activities. For example, governmentfunded Entrepreneurial Incubators exist across the country, loans to entrepreneurs and small businesses are widely promoted, and other agencies such as Community Futures support entrepreneurial activity.
In Canada a good example of an industry with high levels of entrepreneurship and innovation is the cannabis industry. Across the country there are hundreds of small entrepreneurial ventures, including growers, value-added businesses, wholesalers and retail dispensaries.
These companies are keeping pace with rapidly changing consumer desires; there is now a wide selection of cannabis strains, cannabis-infused edibles and the number of retailers (online and brick-and-mortar) is equally extensive. “B.C. Bud” exemplifies the extent that the province has become Canada’s cannabis-industry entrepreneurial epicentre. In almost any other industry the levels of grassroots entrepreneurial ism and innovation would be the subject of provincial and national government pride.
However, impending government regulations seem to be aimed at annihilating our cannabis entrepreneurs. Specifically, current barriers to becoming one of the licensed industry producers are high, requiring extensive business planning and millions in capital investments. As such, the impending government rules appear to be favouring a limited number of large, vertically integrated, licensed suppliers (at this point there are about 45 licensed producers across the country). Few of the small companies in this industry have the money and other resources required to receive this licensed producer status.
If future federal policy does favour only a limited number of large producers, our vibrant and valuable cannabis-industry entrepreneurs are on the brink of extinction. The hundreds of small- and medium-sized enterprises that are now contributing an every-growing range of innovative products will be forced to close. The consequences of such “heavy-handed” policy would have multiple drawbacks.
For example, such legislation would limit Canadian consumer’s access to a much more restricted and less innovative range of products. Secondly, through this kind of market control, the hundreds of small-business owners would be in the unenviable position of choosing between either closing their doors or operating illegally. Thirdly, restricting small-business entrepreneurial ism would damage the longer term opportunity for these small and innovative Canadian companies to establish their brands and compete internationally. It is, after all, often these smaller, dynamic companies competing for position in the domestic market that will also be posed to compete for markets globally.
Without a doubt, determining how to best regulate this industry isn’t easy for all levels of government. And, as with any industry activity, clear and effective regulations are needed. For example, government rules are needed for such things as protecting consumers, limiting cannabis access to minors and ridding illegal activity among cannabis-industry participants.
Ultimately, the federal government needs to introduce regulations that will support continued industry innovation and entrepreneurship among the many small businesses within our thriving cannabis industry. Rules enabling the legal participation of small- and medium-sized business are essential to the continued success of this industry.
Similarly, laws requiring unrealistic levels of investment and bureaucracy for industry participation need to be avoided, as these will also only serve to wipe out the innovative activity of the many small entrepreneurial businesses across our country. Finally, to contribute to Canada’s international competitiveness in this industry, federal regulations supporting opportunities for companies of any size to export cannabis brands are also needed. As it is now, export opportunities are the special and protected purview of only the large licensed producers.