Los Angeles County officials are taking an education-first approach to cannabis entrepreneurship, launching a new six-week academy designed to help aspiring business owners understand the industry’s challenges before commercial licenses become available.
The Cannabis Social Equity Entrepreneurship Academy, announced by the Los Angeles County Department of Economic Opportunity and the Department of Consumer and Business Affairs’ Office of Cannabis Management, provides free business education and technical assistance to residents interested in operating retail cannabis storefronts or delivery businesses in unincorporated Los Angeles County.
County leaders say the program is intended to ensure prospective entrepreneurs — particularly those disproportionately affected by past cannabis-related enforcement — are equipped with the knowledge needed to make informed business decisions before the county adopts its proposed commercial cannabis ordinance.
“We wanted to make sure they were educating individuals early on about what it takes to do a cannabis business,” said Leila Lee, assistant director for business and economic development with DEO. “We want them to make an educated decision.”
Although California legalized recreational cannabis in 2016, Los Angeles County has not yet adopted regulations allowing commercial cannabis businesses in its unincorporated communities. Lee said the county expects to introduce a draft commercial cannabis ordinance next year that will establish proposed land-use regulations and development standards.
Rather than waiting until licenses become available, officials said they wanted to prepare future applicants in advance.
“We’re preparing ahead of the ordinance,” Lee said. “Once the ordinance passes and people are able to apply for a license, they can make an educated decision.”
The academy builds on a February 2022 motion introduced by Los Angeles County Board Chair Hilda L. Solis and Supervisor Holly J. Mitchell directing the Office of Cannabis Management to develop an equitable commercial cannabis framework for unincorporated areas of the county.
“As we work to establish a regulated cannabis industry in the unincorporated areas of the County, we have a responsibility to ensure that those most harmed by inequitable cannabis enforcement policies have a fair opportunity to participate and succeed,” Solis said in a statement. “The Cannabis Social Equity Entrepreneurship Academy is an important step toward breaking down barriers to entry, expanding pathways to entrepreneurship, and advancing economic justice for communities that have been excluded from opportunity for generations.”
Mitchell said communities impacted by decades of cannabis criminalization should have an opportunity to benefit from legalization.
“For too long, communities across my district bore the brunt of cannabis criminalization, only to be locked out of the economic opportunities that legalization created,” Mitchell said. “The Cannabis Social Equity Entrepreneurship Academy is how we begin to make that right.”
The county will prioritize applicants who, or whose immediate family members, experienced cannabis-related arrests or convictions before legalization in 2016.
According to Lee, many social equity applicants in other jurisdictions entered the cannabis industry without fully understanding the financial, legal and regulatory challenges they would face.
“Doing a cannabis business is very difficult,” she said.
Those challenges include industry-specific regulations, taxes, licensing requirements, limited access to traditional financing and competition from the illicit cannabis market.
Lee said many entrepreneurs also lack business experience, access to capital or professional networks, making them vulnerable to predatory business arrangements.
“The biggest misconception is that it’s just like any other business,” Lee said. “Unfortunately, it is not.”
She said the county has seen examples in other jurisdictions where aspiring entrepreneurs signed unfavorable lease agreements, accepted predatory investment partnerships or entered contracts without understanding the long-term consequences.
In one example, Lee described a social equity applicant who technically retained majority ownership of a business while another partner maintained ownership of the company’s branding, leaving the applicant at a significant disadvantage if the partnership dissolved.
“We’re trying to level the playing field as much as we can,” Lee said.
The academy consists of weekly three-hour sessions over six weeks. Participants first learn general business fundamentals before moving into cannabis-specific topics, including licensing, compliance, marketing regulations, financial planning and operational requirements.
The final portion of each class focuses on technical assistance, allowing participants to apply what they’ve learned while developing a business plan and business pitch.
Graduates are expected to complete both as part of the program.
Lee emphasized that the academy is designed as an introductory program rather than a guarantee of business ownership.
Instead, officials hope participants leave with a realistic understanding of whether entrepreneurship is right for them.
“We’re training them to think a different way,” Lee said.
She noted that some graduates may ultimately decide not to open a cannabis business but instead pursue management or leadership positions within the legal cannabis industry.
Following graduation, participants will continue receiving support through networking events, workshops, technical assistance and, potentially, future incubator programs designed to help entrepreneurs prepare for licensing, financing and business development.
The county also hopes to connect graduates with grant opportunities. Lee said graduates of previous county entrepreneurship academies have received grants of approximately $5,000 to support business expenses such as website development, product packaging and marketing materials.
Officials said success will be measured through more than just the number of businesses that eventually open.
The county plans to track graduation rates, business plan completion, participant knowledge, continued engagement with county resources and whether graduates launch businesses, secure employment in the cannabis industry or pursue other entrepreneurial ventures.
“We want to make sure they’re empowered with the knowledge to understand what they want to pursue,” Lee said.
Kelly LoBianco, director of DEO, said the academy is intended to create lasting pathways into an industry that has historically excluded many of the communities most affected by cannabis enforcement.
“The Cannabis Social Equity Entrepreneurship Academy represents a meaningful step toward ensuring that Los Angeles County’s emerging cannabis market reflects the communities that were most affected by decades of harmful prior policy,” LoBianco said. “By equipping residents with the skills, knowledge, and connections to compete in the legal market, the county is creating real and lasting pathways to economic opportunity.”
Rafael Carbajal, director of DCBA, said providing education before licenses become available will help residents better understand the realities of operating in a highly regulated industry.
“We’re helping future entrepreneurs understand the realities of operating in a highly regulated industry,” Carbajal said. “This is an important step toward leveling the playing field and building a more inclusive and equitable cannabis marketplace.”
The academy is funded through a $300,000 investment from the Los Angeles County Justice Care and Opportunity Department’s Care First Community Investment initiative, along with an additional $11,000 in state grant funding. The program is delivered in partnership with Initiating Change in our Neighborhoods Community Development Corporation and KindWorks.
Four cohorts were originally planned to collectively serve approximately 100 participants through the end of 2026. However, Lee said enrollment has exceeded expectations, with one cohort expected to graduate about 38 participants. If the county reaches its goal of 100 graduates sooner than anticipated, a fourth cohort may not be necessary.
The free program is open to Los Angeles County residents age 21 and older who are interested in potentially operating a cannabis retail or delivery business in unincorporated Los Angeles County and can commit to the full six-week curriculum.
The program’s first cohort graduated Tuesday, while applications remain open for Cohort 2 through July 21. The next six-week session begins July 22. Details and an interest form are available at bit.ly/CSEAcademy.
