{"id":49892,"date":"2024-04-12T16:46:20","date_gmt":"2024-04-12T20:46:20","guid":{"rendered":"https:\/\/www.arffinancial.com\/development\/?p=49892"},"modified":"2024-04-12T16:46:20","modified_gmt":"2024-04-12T20:46:20","slug":"the-numbers-behind-tiktoks-impact-on-small-businesses","status":"publish","type":"post","link":"https:\/\/www.arffinancial.com\/development\/the-numbers-behind-tiktoks-impact-on-small-businesses\/","title":{"rendered":"The Numbers Behind TikTok\u2019s Impact on Small Businesses"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_single_image image=&#8221;49893&#8243; img_size=&#8221;large&#8221; alignment=&#8221;center&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<p style=\"font-weight: 400;\">Social media giant TikTok has been a mainstay on our mobile devices since it was <a href=\"https:\/\/www.investopedia.com\/what-is-tiktok-4588933#:~:text=TikTok%20allows%20users%20to%20watch,%2C%20South%20Korea%2C%20and%20Tokyo.\" class=\"broken_link\">launched in 2016<\/a> by the Chinese tech company ByteDance. Its impact on small business survival has been impressive, as <a href=\"https:\/\/www.arffinancial.com\/development\/how-to-promote-your-business-on-tiktok\/?urlsource=blog\">companies leverage its short-form videos<\/a> to advertise their goods and services\u2014and reach a wider audience than they could through other forms of traditional social media. Per <a href=\"https:\/\/www.investopedia.com\/what-is-tiktok-4588933#:~:text=TikTok%20allows%20users%20to%20watch,%2C%20South%20Korea%2C%20and%20Tokyo.\" class=\"broken_link\">Investopedia<\/a>, \u201cbrands open user accounts on TikTok and, just like any of its users, create and post mini-videos. They can pay to promote their videos to other users. The ultimate goal is to go viral and spur takeoffs, drawing in a huge audience for the brand\u2019s message. Light, fun campaigns set to music hit the spot.\u201d\u00a0 TikTok currently boasts <a href=\"https:\/\/www.searchlogistics.com\/learn\/statistics\/tiktok-user-statistics\/#:~:text=TikTok%20has%20over%201%20billion%20monthly%20active%20users.&amp;text=TikTok%20is%20the%204th%20largest,quickly%20catching%20up%20to%20Instagram.\">over 1 billion monthly average users<\/a>, putting it in 4<sup>th<\/sup> place\u2014just behind Instagram, YouTube, and Facebook.<\/p>\n<p style=\"font-weight: 400;\">TikTok, however, has been facing an uphill battle on none other than Capitol Hill. In mid-March, the <a href=\"https:\/\/apnews.com\/article\/tiktok-ban-bytedance-bill-divest-5b5a685e8f1e19d22182d62526bf19b8\">House passed a bill<\/a> that would effectively create a nationwide ban on the app if its China-based owner doesn\u2019t sell its stake in the company. Lawmakers are becoming increasingly concerned that TikTok\u2019s ownership structure is a <a href=\"https:\/\/apnews.com\/article\/tiktok-ban-bytedance-china-biden-administration-14ef5f93dc2114e4ade110b2e85433fd\">threat to our national security<\/a>; the fear is that the Chinese government \u201ccould demand access to the data of TikTok\u2019s consumers in the U.S. whenever it wants. The worry stems from a set of Chinese national security laws that compel organizations to assist with intelligence gathering,\u201d <a href=\"https:\/\/apnews.com\/article\/tiktok-ban-house-vote-china-national-security-8fa7258fae1a4902d344c9d978d58a37\">according to the AP<\/a>.<\/p>\n<p style=\"font-weight: 400;\">The potential ban has unleashed a ton of backlash from those in the small business world, who rely on the platform to generate revenue for their businesses. Ahead of this potential ban, ByteDance put out the <a href=\"https:\/\/tiktokeconomicimpact.com\/\">TikTok Economic Impact Report<\/a> (the study was done by Oxford Economics) to showcase just how valuable the company is to small- to mid-size businesses (SMBs). The report notes that TikTok generated $14.7 billion for SMBs in 2023, with an additional $24.2 billion in total economic activity. It also claims that more than 7 million businesses in the United States rely on the platform, and 224,000 jobs were supported just because of small business activity on TikTok in 2023. The app generated $5.3 billion in tax revenue through small business activity (which includes its use as a marketing and advertising tool). Over half\u201452 percent\u2014of survey respondents say they rely on the app to stay competitive in the market.<\/p>\n<p style=\"font-weight: 400;\">\u201cTikTok delivers more than just entertainment\u2014it fuels significant economic growth for US businesses and the US economy as a whole. The platform\u2019s economic impact cannot be understated or ignored. Data shows it\u2019s a major contributor to the US economy, driving billions of dollars in growth, supporting hundreds of thousands of US jobs, and delivering a competitive edge to small businesses across the nation,\u201d says the <a href=\"https:\/\/tiktokeconomicimpact.com\/tiktok-economy-impact\/\">Economic Impact<\/a> website.<\/p>\n<p style=\"font-weight: 400;\">There is data (and outrage) out there to support keeping TikTik up and running, and this bill still needs to <a href=\"https:\/\/techcrunch.com\/2024\/03\/14\/tiktok-ban-senate\/\">pass the Senate<\/a> where it faces challenges from both parties. So far, no one has committed to taking up the legislation once the House sends it through. In the meantime, TikTok has been <a href=\"https:\/\/www.tiktok.com\/discover\/How-to-write-to-congress-to-stop-tik-tok-shut-down\">urging users<\/a> to write to Congress to stop a shut down.<\/p>\n<p style=\"font-weight: 400;\">We\u2019ll continue to keep an eye on what\u2019s happening in Washington as it pertains to TikTok. In the meantime, stay tuned to the <a href=\"https:\/\/www.arffinancial.com\/development\/blog\/?urlsource=blog\">Financial Pantry<\/a> for the latest news, legislation, and tips for small business owners like you.<\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<span style=\"font-size: 13px; line-height: 15px;\">Your privacy is important to us. ARF Financial will never sell or rent your information to any third party.\u00a0<a href=\"https:\/\/www.arffinancial.com\/development\/privacy\/?utm_source=Outbrain&amp;utm_medium=OutbrainBlog&amp;utm_term=Outbrain&amp;utm_content=GoingGreen&amp;utm_campaign=GoingGreen\">Click here<\/a>\u00a0for more information about our privacy policy.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;49893&#8243; img_size=&#8221;large&#8221; alignment=&#8221;center&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text] Social media giant TikTok has been&#8230;<\/p>\n","protected":false},"author":5,"featured_media":49893,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[698],"tags":[398,402,400,399,443,386,535,220,213,401,224,222,172,226,307,1178,1237,142],"class_list":{"0":"post-49892","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-small-business-financing","8":"tag-affordable-business-loans","9":"tag-affordable-small-business-growth","10":"tag-business-expansion","11":"tag-business-growth","12":"tag-business-line-of-credit","13":"tag-business-loans","14":"tag-equipment-leasing","15":"tag-flex-pay-loans","16":"tag-line-of-credit","17":"tag-small-business-expansion","18":"tag-small-business-financing","19":"tag-small-business-funding","20":"tag-small-business-growth","21":"tag-small-business-loans","22":"tag-small-business-operations","23":"tag-small-business-owners","24":"tag-the-numbers-behind-tiktoks-impact-on-small-businesses","25":"tag-working-capital"},"acf":[],"yoast_head":"<!-- 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