Small businesses brace for potentially disruptive TikTok ban

[UNITED STATES] As the clock ticks towards January 19, 2025, small businesses across the United States are holding their breath. The looming TikTok ban, signed into law by President Biden, threatens to upend the marketing strategies and revenue streams of millions of entrepreneurs who have come to rely on the popular short-form video platform. With the potential ban just days away, small business owners are scrambling to adapt and find alternative ways to reach their customers in an ever-changing digital landscape.

TikTok, owned by Chinese company ByteDance, has been at the center of a geopolitical storm due to concerns over data privacy and national security. The new law gives ByteDance a 9-12 month window to sell TikTok to an American owner or face a complete ban in the United States. This decision has sent shockwaves through the business community, particularly among small and medium-sized enterprises (SMEs) that have built their brand presence and customer base on the platform.

The Economic Impact of a TikTok Ban

The potential economic fallout from a TikTok ban is staggering. According to a report by Oxford Economics, TikTok contributed $24.2 billion to the U.S. GDP in 2023, with $15 billion stemming from small businesses. The platform has also been credited with creating 224,000 jobs in the U.S. and generating $5.3 billion in tax revenue.

TikTok's own estimates paint an even more dire picture for small businesses:

• Over $1 billion in lost revenue for small businesses within the first month of a ban
• Nearly $300 million in lost earnings for content creators
• A potential 29% drop in TikTok's global advertising revenue for 2025

These figures underscore the significant role TikTok plays in the modern small business ecosystem and the potential disruption its absence could cause.

Small Businesses on the Front Lines

For many small business owners, TikTok has been more than just a marketing tool—it's been a lifeline. Take Desiree Hill, owner of Crown's Corner Mechanic in Conyers, Georgia. Hill started as a solo mobile mechanic but, thanks to her TikTok presence, was able to open a 9,000 square foot brick-and-mortar shop with five employees in just 18 months.

"Every day, I get at least two to three customers that have seen me on TikTok, watched my videos and wanted to become a customer," Hill shared. Her story is not unique. Across the country, entrepreneurs have leveraged TikTok's organic reach and low-cost advertising options to build thriving businesses.

Brandon Hurst, known as "Brandon the Plant Guy," is another success story. His plant delivery business has tripled since last year, selling an impressive 57,000 units through TikTok. "TikTok offers me the unique ability to showcase who I am and make sales effortlessly," Hurst explained.

The Unique Appeal of TikTok for Small Businesses

What makes TikTok so valuable for small businesses? Jasmine Enberg, an analyst for data firm eMarketer, points to the platform's unparalleled ability to drive sales, both physically and virtually. TikTok's algorithm, which favors content over follower count, has allowed small businesses to compete with larger brands on a more level playing field.

Moreover, TikTok's short-form video format has become synonymous with modern marketing, allowing brands to create engaging, relatable content that resonates with audiences. The platform's emphasis on authenticity and creativity has been particularly appealing to younger demographics, with Gen Z and Millennials using TikTok as their preferred platform for discovery and interaction.

Adapting to a Post-TikTok Landscape

As the ban date approaches, small businesses are being forced to rethink their digital strategies. Here are some key ways entrepreneurs are preparing for a potential TikTok-free future:

Diversifying Social Media Presence: Many businesses are ramping up their efforts on alternative platforms like Instagram Reels, YouTube Shorts, and Snapchat Spotlight. While these platforms offer similar short-form video capabilities, they may not provide the same level of organic reach that TikTok is known for.

Focusing on Owned Media: Some businesses are doubling down on channels they control, such as email lists, blogs, and websites. These owned media channels provide a stable foundation that isn't affected by platform bans.

Strengthening Content Strategy: Savvy entrepreneurs are creating platform-agnostic content that can be easily repurposed across multiple channels.

Investing in Community Engagement: Building strong, direct relationships with customers is becoming increasingly important as businesses look to maintain connections outside of any single platform.

Exploring Emerging Platforms: Some businesses are taking a proactive approach by establishing a presence on up-and-coming social media platforms, hoping to get in on the ground floor of the next big thing.

The Broader Implications

The potential TikTok ban raises larger questions about the future of social media marketing and the risks of relying too heavily on any single platform. As Veronica Lin, head of brand and strategy at Playsee, notes, "The absence of the platform would necessitate a shift to other social media platforms to maintain visibility and engagement in the highly competitive marketplace".

This situation serves as a stark reminder of the importance of adaptability in the digital age. Businesses that can quickly pivot and diversify their online presence are likely to weather this storm more successfully than those that have put all their eggs in the TikTok basket.

Looking Ahead

As the January 19 deadline approaches, the future remains uncertain. TikTok has initiated legal proceedings, filing an emergency motion to postpone the ban while the U.S. Supreme Court examines the case. The company has reaffirmed its commitment to protecting its 170 million U.S. users and maintaining the opportunities it generates for businesses, creators, and the broader economy.

Meanwhile, small business owners like Desiree Hill and Brandon Hurst are left to contemplate their next moves. "I'm present on Instagram, and I've managed to conduct business on other platforms," Hurst shared. "There aren't many options for live selling, though, so I haven't given it much thought yet".

As the situation unfolds, one thing is clear: the potential TikTok ban is more than just a tech industry issue. It's a pivotal moment for millions of small businesses that have built their livelihoods on the platform. Whether TikTok survives this challenge or not, the episode serves as a powerful reminder of the need for digital resilience in an ever-changing social media landscape.

In the face of this uncertainty, small businesses are demonstrating the very qualities that have made them successful on TikTok: creativity, adaptability, and perseverance. As they navigate these choppy waters, their ability to innovate and connect with customers will be put to the test. The coming months will reveal not just the fate of TikTok, but the resilience of America's small business community in the digital age.