Competitive Licensing Helps Marijuana Businesses in Nevada
Today, occupational licenses cover many mid-level professions and businesses in the U.S. In some states, licensing covers more than different professions.
Occupational license means that individuals need to get approval from the government to start a business in any state. Although the process can consume a lot of time, efforts can be expensive as well. Previously, the licensing scheme was applied to a fewer number of professions. However, today there has been a significant increase in the number of licensed industries. Thousands of professions now fall under the licensing requirements, including the low and middle-level jobs.
Same is the case with Nevada where you need to have a license to start a marijuana business. Nevada is now considered to be a role model for other states in this domain. The state is managing hundreds of successful industries today due to its oversight system.
However, it is difficult to start some businesses in Nevada due to a limited number of licenses available for businesses such as marijuana. Hundreds of applicants are competing against less than 100 licenses. These statistics are shocking to some extent, but on the positive side, this competition gives entry to a long-lasting industry.
It is worth noting that the tight licensing scheme is important for Nevada to retain stability in the state. These businesses are a source of earning for billions of dollars of taxes to the Nevada government. This trend is expected to increase within the next 5-6 years.
Just like all other businesses, the latest statistics show that there has been significant growth in the cannabis industry across Nevada. Recently 61 new marijuana businesses got conditional licenses from the Taxation department. Furthermore, the Taxation Department issued 31 new licenses to Clark County.
According to the Taxation Department, a total of 65 businesses in Nevada have the license to sell marijuana. All of these businesses need to get their final inspections and local approval within a duration of 12 months. However, there are some businesses as well that failed to get their licenses, including production locations and cultivation.
The licensing scheme is important to develop healthy competition across the industry. It not only impacts the future of the industry, but also benefits both the consumers and industry. Licensing costs are relatively higher in all U.S. states, which is to be paid by individuals. For example, you need to wait for around 890 days to be a licensed barber in Nevada.
A recent research study shows that “licensing results in 2.85 million fewer jobs.” This is an alarming condition and mainly affects immigrants and veterans.
It is worth mentioning that local and state lawmakers also play an important role as far as occupational licensing is concerned. The federal government needs to highlight this issue at the national level. Although the government is working in this direction, some significant efforts are still required from the lawmakers to expedite it further.