Cannabis dispensaries contribute to local economic growth in more ways than you’d imagine. Going beyond supporting the health and wellness of local residents, tax revenue generated by dispensaries can uplift community development and programs that help the less fortunate. In fact, in Denver, Colorado, $7.3 million from cannabis tax revenue went to supporting homeless services and housing. Not to mention, as of today, the legal cannabis industry generated over 440,000 jobs—a 5.4% increase in the past year.
Far from being a drain on resources, cannabis businesses strengthen communities by increasing revenue, enhancing public safety, and supporting local economies. Cannabis businesses contribute to municipalities in several ways:
- Increased Tax Revenue—Dispensaries generate significant local tax revenue, often reducing the tax burden on residents and making towns more attractive places to live.
- Enhanced Safety—Due to strict security regulations, dispensaries are equipped with extensive surveillance systems. These cameras have helped law enforcement solve crimes by providing clear footage of parking lots and roads—most often unrelated to the cannabis business itself.
- Economic Benefits—Rather than decreasing property values, cannabis businesses have been shown to boost real estate prices, contributing to overall economic growth.
Cannabis is becoming more widely accepted, and businesses should leverage that growing normalization. At the end of the day, dispensaries are just like any other business. It’s important that all dispensaries make it clear to the communities they serve that they’re here to be a partner with the local community to drive economic growth and sustainability. The more we embrace that and collaborate with other businesses, the more we normalize cannabis. It’s about building each other up and fostering community engagement.
Below are some ways dispensaries can get involved with their local community to drive immense economic impact.
8 Ways Dispensaries can Drive Local Economic Impact
1. Hire Local
Hiring locals is critical to driving economic growth. Reducing local unemployment rates and putting more money into local residents’ pockets leads to increased spending power within the community—especially at other local small businesses!
2. Support Local Nonprofits
Successful cannabis dispensaries serve the community beyond just selling cannabis, so it’s important to focus on supporting local nonprofits, charitable donations, and community initiatives. While you may be restricted from directly supporting youth sports, you can still contribute privately to fundraisers.
Some other key initiatives to consider include food and clothing drives, quarterly cleanups—often joined by other local businesses—and sponsoring various events. Don’t forget about sponsoring social equity events and industry gatherings.
3. Join the Chamber of Commerce
All the small efforts add up—like joining the local Chamber of Commerce, attending luncheons, and engaging with both businesses and residents at community gatherings. These interactions help strengthen connections and integrate your dispensary more deeply into the community.
4. Offer Education to the Public
Too often, people associate cannabis with a stigma. In order to make a positive impact on your community, it’s vital to educate people about cannabis—its benefits, how it helps people, and how your business aims to do good. Your approach needs to be comprehensive: engaging with the community, fostering conversations, and actively participating in local initiatives.
5. Participate in Seasonal Events
Get involved in community events that align with the local rhythm—like summer farmers’ markets or music events at local venues and other gatherings across your locations.
Don’t forget to commit to meaningful engagement, ensuring real buy-in from your team by having your managers, shift leaders, and budtenders participate as much as they’re willing and able.
6. Partner with Local Farms & Small Businesses
Partnering with and supporting other local businesses, like farms or small businesses, is essential to driving economic growth. When one business wins, the whole community wins. One thing you can do is create and update local guides featuring must-visit spots in your area—beyond just your store. Whether it’s farms, bakeries, coffee shops, or other small businesses, focus on creating buzz and driving awareness for your partners.
Regulations on cannabis can create hurdles around discounts and promotions, but there are always creative ways to collaborate. For example, in Portland, one of Silver Therapeutics’ dispensaries partnered with an artisanal grilled cheese shop across the street. They ran a promotion where customers who spend a certain amount can get a $1 pre-roll at Silver Therapeutics.
7. Encourage Sustainability
It’s important to do everything you can to encourage customers to make sustainable choices—but first, you need to present them with the choice. For example, when someone makes a purchase at your store, you can ask if they’d like a takeout bag or if they’d rather put the item in their pocket, saving on the paper bag. Or offer a promotion where if a customer brings in a reusable tote bag from your store, they can save 10% on their purchase.
8. Host Community Outreach Meetings
In Massachusetts, where a few of Silver Therapeutics’ dispensaries are located, cannabis businesses are required to hold community outreach meetings—but we go beyond the minimum requirements. Even when not mandated, we continue to host these meetings to stay engaged with local communities.
Why? It’s important to take a proactive approach by reaching out to key stakeholders, including local police and fire departments, chambers of commerce, and other community organizations. When meeting with officials, such as the police chief, it’s a good idea to ask: Who else should we connect with in town? This helps build relationships, introduce your values, and demonstrates that you are here to run a responsible business that benefits the community.
Through these efforts, you’ll consistently identify and connect with local groups and individuals, strengthening your community ties and setting the foundation for long-term success for both your business and your local community.
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