Certification programs like Minority Business Enterprise and the Women-Owned Business Enterprise National Certification have been catalysts for growing supplier diversity programs within various industries. We understand there is value in building a suite of products and services to help small, disadvantaged business owners be successful in the marketplace. Here is why the certification is important to the legal cannabis industry.

Problem: There are only a few states that offer a social equity designation and none of those states prioritize communities of color, even as the goal of the social equity movement is to create more opportunities for people of color, African Americans specifically. 

Not every business owner operating in the cannabis ecosystem (ancillary and non-plant touching entities) requires a license yet all state and local funds to support this designation are tied to license seeking operations.  We are missing out on opportunities to leverage funding support for a variety of business types across state marketplaces that are led by owners and founders from marginalized and historically disadvantaged communities. 

Less than 3% of all licensed cannabis businesses are owned and/or operated by individuals who identify as a minority, and even fewer owners identify as someone negatively impacted by the war on drugs. To ensure that those individuals most harmed by the criminalization of cannabis have equal access and equitable opportunities, a social equity framework must be applied throughout the cannabis ecosystem, including community, government, and industry. Establishing an easy identifiable way for brands to use the NSEC program is an important part of this ecosystem. 

• To identify and certify organizations, businesses, and brands across the United States as social equity owners
• To advance pro-equity practices and systems at all levels of business
• To provide increased procurement and business opportunities for businesses owned and/or operated by individuals negatively impacted by the war on drugs
• To bolster minority supplier development programs and provide a means for corporations to foster economic growth within the minority business community
• To collect data that can be used to promote equal employment opportunities and to assess racial disparities in health and environmental risks

This certification gives you the distinct recognition as a social equity owned business owner regardless of what part of the cannabis industry you participate in or what state or territory you live in. This certification will also encourage our partners to extend more business opportunities to a diverse group of cannabis entrepreneurs.

Marijuana Matters is working with partners to provide steep discounts to business services including platforms like MJ Freeway and Weedmaps. Additionally, SE certified businesses will receive access to training, education and mentorship programs offered from key corporate partners.  Lastly, business owners can expect the certification to create pathways to greater prosperity through amplification of business profiles using Marijuana Matters media partnerships. 

When defining social equity, there is no one answer, and it may vary depending on the context. However, the origins of the concept of social equity are ancient and built on the premise of justice and fairness. For the purposes of this certification, we define social equity as follows:

The equitable distribution of resources and services by all public-serving institutions (Government, NGO, and corporate entities) to promote and ensure fair and equitable access to opportunities and outcomes for individuals from and in communities historically and disproportionately impacted by the war on drugs.

The company or organization must have been formed as a legal entity in the United States with its headquarters located in the U.S. The company must be at least 51% owned, operated, managed, and controlled by an individual from the social equity community who is either a U.S. citizen or lawful permanent resident. The business must operate independently from any business enterprise not owned and operated by someone from the social equity community.

Appropriate documentation must be supplied in accordance with the national standards listed below. The certification is awarded after a review of documentation and is valid for a two-year period, after which companies must re-certify.

• You are a legal resident of the United States including the District of Columbia and Puerto Rico.
• You reside or conduct business in a census-designated place with a low median income (the specific income requirement varies by program, as do the residency requirements) or reside or conduct business in a federally designated opportunity zone.
• You have been convicted of a marijuana-related offense
• One of your immediate relatives (usually a parent, child, or sibling) has been convicted of a marijuana-related offense
• You are of African American, Native American, Asian, or Latinx descent (or you belong to one or more other communities of color that have been harmed by the War on Drugs)
• You belong to another underrepresented group or disproportionate subset of cannabis business owners (for instance, if you’re a woman, a veteran, or a disabled business owner)
• You meet certain maximum income requirements. Affluent business owners are generally disqualified from social equity licensing.

Licensed Cannabis Owners and Plant-Touching Businesses: 

• Delivery

• Cultivation

• Dispensary (Retail) Store

• Processor

• Consumption Lounge

Ancillary Businesses: 

• eCommerce
• Testing Labs
• Clothing and Textiles
• Security & Secure Transport
• Licensing and Branding
• Packaging and Labeling
• Banking
• Compliance
• Payroll
• Hydroponics
• Real Estate
• Medical Professional (nurse, doctor, pharmacist, caregiver)
• Smoking Accessories
• Advocate, Consultant, or Attorney

Upon being awarded a certification, your contact information will be available to our corporate partners and your fellow NSEC colleagues.