For years, social equity has been one of the defining conversations in the regulated cannabis industry. States across the country have introduced programs intended to expand participation among communities disproportionately impacted by cannabis prohibition, often centering those efforts around the distribution of new business licenses.
But obtaining a license is only the beginning.
In the latest episode of the Emerald Insights Podcast, Emerald Intel Chief Economist Ed Keating sits down with Ernest Toney, Founder of BIPOCann, to discuss what happens after entrepreneurs receive approval to enter the market. Their conversation explores the often-overlooked realities of building a cannabis business—from securing capital and navigating regulatory complexity to finding trusted advisors and developing long-term growth strategies.
Drawing on years of experience supporting equity licensees in Colorado, Toney argues that sustainable businesses require far more than regulatory approval. They require infrastructure, education, mentorship, and practical business support.
Many social equity programs have focused considerable effort on creating pathways into the cannabis industry. While that work has expanded opportunities for new entrepreneurs, Toney believes the conversation has often stopped too early.
"I was already working in an environment where deals were getting done, transactions were being made, and people were learning about how to start and grow businesses. Access to licenses is only one part of the equation. None of these policy conversations are focusing on how to give business owners and entrepreneurs the tools and resources they need to grow."
That realization became the foundation for BIPOCann.
After working at MJBizDaily during one of the industry's most rapid periods of expansion, Toney saw firsthand how relationships, education, and business networks accelerated growth for established operators. At the same time, many entrepreneurs entering through emerging social equity programs lacked access to those same resources. The issue wasn't simply access to licenses—it was access to the business ecosystem that surrounds successful companies.
For cannabis operators, this distinction is significant. Regulatory approval opens the door, but building a sustainable company requires operational expertise, strategic planning, financial discipline, and a strong professional network. Without those elements, even well-intentioned equity programs risk placing entrepreneurs at a competitive disadvantage from day one.
Rather than limiting its work to advocacy, BIPOCann has evolved into an organization focused on hands-on business development.
Since launching its accelerator and mentorship programs, the organization has worked with more than 50 equity license holders across multiple cannabis license types in Colorado. Participants range from entrepreneurs preparing to launch their first business to operators already generating revenue and looking to scale.
As Toney explained during the conversation:
"The needs they might have in year one, if they're pre-revenue and pre-operational, are a lot different when they're in growth and scale mode."
That philosophy has shaped BIPOCann's approach. Instead of offering one-size-fits-all guidance, the organization meets entrepreneurs where they are in their business lifecycle. Early-stage operators may need assistance refining business plans, building financial projections, or identifying trusted service providers. Established operators often require strategic guidance around expansion, operations, branding, or accessing new markets.
This individualized approach reflects an important lesson for regulators and industry stakeholders alike: successful cannabis businesses are built over time. Supporting entrepreneurs requires ongoing technical assistance rather than one-time interventions tied solely to licensing.
Throughout the discussion, one challenge consistently emerged above the others: access to capital.
While headlines often focus on new market launches or federal reform, many existing operators remain focused on far more immediate concerns—maintaining cash flow, managing expenses, and finding the resources necessary to continue operating.
Toney summarized the reality facing many businesses:
"Even if they are generating revenue right now, capital and access to it still tends to be the biggest barrier."
That challenge has become increasingly pronounced in mature markets like Colorado. As wholesale prices have declined, competition has intensified, and consumer demand has normalized, operators have been forced to compete on thinner margins. For newer businesses—particularly those without institutional investors or significant reserves—those conditions create considerable financial pressure.
The discussion also touched on the potential impact of federal rescheduling. While policy conversations often focus on headlines or investor sentiment, Toney emphasized the practical implications for operators. Relief from IRS Section 280E would allow cannabis businesses to deduct ordinary business expenses, improving cash flow and enabling many companies to reinvest in growth rather than directing a disproportionate share of revenue toward taxes.
For smaller operators, that change could represent meaningful operational relief rather than simply a policy victory.
Colorado's cannabis market is among the most mature in the country, creating challenges that differ from those facing newly legalized states. Tourism has declined from its early peak, wholesale prices have compressed, and operators face increasing competition in a saturated marketplace.
Yet Toney cautions against assuming newer markets automatically present better opportunities.
"Those new markets don't have the infrastructure that has been built within some of these established markets."
That observation highlights an often-overlooked competitive advantage. Mature markets possess experienced service providers, established distribution networks, knowledgeable regulators, and a deeper pool of operational expertise. Entrepreneurs entering those ecosystems can often move more efficiently because much of the industry's supporting infrastructure already exists.
Conversely, first movers in emerging markets may benefit from reduced competition initially, but they frequently face uncertainty around regulations, supply chains, staffing, and market development. As more states legalize cannabis, understanding these tradeoffs will become increasingly important for entrepreneurs evaluating where—and how—to invest.
Looking ahead, BIPOCann continues expanding its efforts beyond mentorship alone.
The organization is hosting its Cannabis Equity Summit in Denver while also pursuing new fundraising initiatives aimed at providing grant capital directly to equity license holders. By combining education, networking, and financial support, the organization hopes to address multiple barriers that continue to limit business growth.
That evolution reflects a broader shift occurring throughout the industry. As cannabis markets mature, success will increasingly depend on helping operators build resilient businesses rather than simply increasing the number of licensed companies.
For policymakers, regulators, and industry leaders, the conversation may also be changing. The next generation of equity initiatives will likely be measured not by how many licenses are awarded, but by how many businesses remain open, profitable, and growing years after they begin operations.
That is ultimately the challenge Ernest Toney and BIPOCann are working to solve—and one that will continue shaping the future of the regulated cannabis industry.
To hear the full conversation with Ernest Toney, including insights on cannabis business development, market maturity, capital access, and the future of social equity, listen to the latest episode of the Emerald Insights Podcast.