Change within the cannabis industry could lead to drastic improvements in social justice. Ever since marijuana was first regulated in the United States in the early 1900s, it has been used as the justification for the excessive incarceration and disenfranchisement of targeted groups, specifically, Black and Latino populations. Now, the growing popularity of marijuana, from both the recreational and entrepreneurial perspective, has led to the legalization of recreational cannabis in 15 states. <br/>Although this enterprise is highly profitable and alluring for consumers and business owners, the problem of underrepresentation of minority owned businesses within the industry still remains. This underrepresentation symbolizes the unjust ability for this enterprise to capitalize on those victimized by past drug regulations and on a larger scale, how it perpetuates institutionalized racism. The criminalization of marijuana not only allows for certain groups to remain successful in this booming billion-dollar operation, but also ensures that others remain unseen and left behind. <br/>This thesis aims to show the ways in which the legal cannabis industry can expand and encourage minority-owned businesses to venture into the sector. In this paper, I will attempt to outline the history of cannabis regulation and anti-drug campaigns, and illustrate the lack of diversity within the cannabis industry. I will also touch upon the remedies and reparations for racial inequality and how public policy can address entrepreneur’s demands in future policy considerations and industry practices.

With cannabis legal in 38 states, 5 territories, and the District of Columbia as of 2023, the legal cannabis industry has become a major emerging industry that will continue to grow rapidly as continuing support for legalization drives both states and the federal government toward relaxing and even repealing prohibitions on both medical and recreational cannabis. However, the patchwork of conflicting state and federal laws surrounding cannabis create a legal and economic quagmire that severely limit the growth and success of legal cannabis businesses while aggravating longstanding socioeconomic disparities. In this thesis, I offer an evaluation of the history of cannabis in the US, current cannabis policy at the state and federal level, as well as offer a selection of federal and state policy options to promote a dramatic overhaul of current federal cannabis policy. These proposals aim to effectively and efficiently address the state/federal divide in cannabis law while simultaneously addressing key socioeconomic disparities aggravated by federal cannabis prohibition.