Search results

1 – 1 of 1
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 22 July 2024

John F. McArdle, Alice J. de Koning and Arlinda Sherifi

This paper aims to discuss the effect of Canada’s regulatory framework on the strategies of entrepreneurial businesses during the first phase of legalization of the recreational…

53

Abstract

Purpose

This paper aims to discuss the effect of Canada’s regulatory framework on the strategies of entrepreneurial businesses during the first phase of legalization of the recreational cannabis industry. Decriminalization of cannabis required a host of regulatory changes at the federal, provincial and municipal levels. Each province developed legal markets independently, differentially impacting entrepreneurial strategies. This paper describes the value chain that emerged in the first phase of the nascent industry, focusing on the actions of the businesses.

Design/methodology/approach

The authors develop a qualitative narrative analysis using government publications, press articles (especially from the business press) and personal communications of industry insiders speaking in public settings. The paper includes four short case studies to illustrate the emerging value chain of the nascent industry.

Findings

The study’s findings highlight the effect of regulatory frameworks on entrepreneurial strategies. We find that public policies had a significant impact on entrepreneurs and startup strategies. Inter-jurisdictional differences limited expansion into different provinces, with implications for regional economic development. Achieving public policy goals was delayed as a result of regulatory challenges that impacted industry development.

Practical implications

The authors’ findings show enterprises may develop growth strategies that comply with regulations when participating in nascent industries, but they must cope with extra risks, capital costs and uncertainty. The analysis also illustrates the value of engaging in government-industry collaboration to improve emerging regulatory frameworks.

Originality/value

The originality of this research consists of the detailed description of the first phase of Canada’s legalized recreational cannabis industry and the insight gained into the dynamics of nascent industries.

Details

Journal of Entrepreneurship and Public Policy, vol. 13 no. 4
Type: Research Article
ISSN: 2045-2101

Keywords

1 – 1 of 1
Per page
102050