In the advent of modern entrepreneurship and innovation, many business turnabouts have been witnessed in the United States and other parts of the globe. The government has promoted such a culture through initiatives aimed at galvanizing thinking and creativity. Marijuana is an illegal drug in many legal regimes across the world. Despite this, numerous individuals perform illegal underground activities involving the sale of marijuana. In the US, the drug has been legalized in some states, with several of the remaining statewide initiatives in terms of legalizing cannabis. The primary rationale for the above aim has been on the grounds of its medical use and business value. The paper explores the rising legalization issue and the booming business of marijuana, as well as its significance to the economy of the United States. In addition, the essay explores what measures can be undertaken to ensure proper regulation of the fledgling industry.
The wave of legalization of marijuana has been overwhelming in the country in light of its potential for business and entrepreneurship. In the pursuit of creation of employment opportunities and widening the scope of the economy, most states have resorted to legalizing the crop. In this regard, cannabis is viewed as the cash crop of medic and business value. The first state that adopted such a regulation was Colorado. The legalization has meant that the private business community had expanded the scope of its operations. The parties in the business of cultivating and marketing of legal marijuana in the US range from bank executives, CEOs, CFOs, to pharmacy, banking, and real estate spheres among other entrants (Grissler & Bodley, 2014). They view the cannabis business as a multi-billion-dollar economy owing to the statistics indicating the returns. In fact, a variety of investors change their attitude towards marijuana and more serious business ventures appear. The industry recorded a net worth of $2.66 billion in US sales in 2014 (Chiaffarano, 2014). The income is up 74% from $1.53 billion in the previous year according to a cannabis industry investment report (Grissler & Bodley, 2014).
Further, these businesses speculate that the market will expand even further shortly. The legal medical marijuana trade has also brought in millions for dispensary owners and cultivators. Moreover, there is a thriving ancillary market, driving job growth, and spiraling property values. Speculators are exuberant about this situation. An assumption can be made that many people buy medical marijuana only due to its illegal status. The punishment for this offence has been insufficient for handling illegal marijuana. Chiaffron (2014) notes that the market potential for this commodity is huge. I, therefore, agree with his opinion that the market is expanding at a fast rate.
The legalization wave has swept across the American market as was mentioned above. However, some market players are still skeptic about the medical marijuana trade. Most of the conservative businesspeople have kept their caution concerning the business. Most of these entities are located in the states that are yet to legalize the crop. They exercise the discretion in the fear that the federal governments’ hard stance of the drug could result in their prosecution. Some of the companies still not getting into the business include Boston-based Dutchess Capital. In essence, the company did start the marijuana business in 2012 (Chiaffarano, 2015). However, the entrepreneurs were hesitant owing to the setbacks of the federal administration. Furthermore, the businesses are cautious because of the astronomical taxes imposed by the federal agencies on those practicing the trade. The high taxes prevent them from such a business venture because this circumstance shrinks their profit while the aim of doing business is profit-making. The other reason is the fact that some firms are left behind due to the growing stiff competition in the market. The business exercising the caution seems to have been hampered in the sweeping flood of medical marijuana booming business.
It is apparent that market continues to broaden. Nevertheless, government regulations are critical in keeping the business development pace. Undoubtedly, the pro-marijuana illegalization forces cannot be wished away. Many researchers have tried to link marijuana consumption with roughness and criminality. Opening a door for free use of the drug under the medicated guise would mean an upsurge in the crime rates. Therefore, control mechanisms need to be put in place. For example, there should be laws controlling the age at which one can be exposed to drug. The law can be fashioned in a way that limits the exposure to people over 15 years old. The market segment also requires the regulating policies. It is fundamental to note that most products have their counterfeit. Marijuana is not an exception. Effectual market policies are critical in ensuring legitimate marijuana in the market. For instance, standardization can help in recognition of the counterfeits. Moreover, the judicial system must enforce the laws without discrimination.
The expanded business atmosphere in the US market is encouraging. In the era of youths needing employment, innovativeness and creativity are the way to go. The idea of legal medical marijuana trade is perfectly in shape to help curb this sphere and enhance economic growth. Unabated marijuana consumption has the potential of impinging effects touching of the social values and fabric of the community. With proper regulation, the business will soar higher. I also agree with the expert’s opinion on the prospects of the medical marijuana markets. Many states which have not yet legalized the commodity are likely to fall to the waves. As a business principle, an exercise of caution by the remaining firms is in order. It is a component of due diligence.