As Illinois begins to award much-delayed cannabis business licenses, the new business owners will face a long uphill climb. They’ll be pitting mom-and-pop startups against giant companies that have had a five-year head start to take control of the market.
Entry-level entrepreneurs will have, in many cases, one dispensary to compete with companies that control up to 10 stores across the state. New craft growers will be limited to 5,000 square feet, compared with behemoth cultivators in cavernous warehouses up to 221,000 square feet.
The upstarts will have to compete with international corporations that advertise on radio and billboards, hire award-winning chefs to make edibles and have established brand name loyalty. The uneven playing field affects customers, because dominance by a few competitors has led to higher prices, which helps perpetuate illegal sales.
Those who have already competed in this market, though, say the newbies can succeed — if they concentrate on their own strengths and customers.
“The industry doesn’t even come close to hitting what it can,” Dispensary 33 co-owner and general manager Paul Lee said. “So there’s still a lot of room for growth. But they’ll have a heck of a time getting started.” [Read More @ The Chicago Tribune]
The post New cannabis licensees in Illinois face David vs. Goliath fight against industry giants appeared first on Cannabis Business Executive – Cannabis and Marijuana industry news.
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