TikTok Ban: How US Creators and Small Businesses Could Be Affected

TikTok creators and small businesses in the U.S. face an uncertain future as the Supreme Court deliberates on a potential ban of the popular social media platform.

At a Glance

The U.S. Supreme Court is gearing up to hear arguments on a potential TikTok ban, which could impact creators and small businesses.
Small businesses could lose over $1 billion in monthly revenue if TikTok is banned
Creators are anxious about losing their livelihoods built around TikTok content.
Some users are diversifying to platforms like Instagram and YouTube as precaution
TikTok estimates losing a third of daily U.S. users in just a month-long shutdown.

TikTok Ban Threatens Small Business Revenue

As the U.S. Supreme Court weighs the fate of TikTok, small businesses and content creators who rely on the platform are bracing for potential significant losses. The popular video-sharing app has become a crucial tool for many entrepreneurs to grow their customer base, advertise, and sell goods. If a ban is implemented, it could result in over $1 billion in lost revenue monthly for these small businesses.

The Justice Department has ordered ByteDance, TikTok’s Chinese parent company, to sell the app or face a U.S. ban, citing national security concerns. This has left many business owners in a state of uncertainty, forcing them to consider alternative platforms and strategies to maintain their online presence and customer connections.

Impact on TikTok-Dependent Businesses

For many small business owners, TikTok has been a game-changer in terms of customer acquisition and growth. Desiree Hill, owner of Crown’s Corner Mechanic, has experienced firsthand the power of TikTok for business expansion. Her experience highlights the platform’s unique ability to connect businesses with potential customers through engaging video content.

“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,” Desiree Hill,owner of Crown’s Corner Mechanic in Conyers, said.

The potential loss of TikTok as a marketing tool has many business owners concerned about their future growth and ability to reach new customers. Some are already looking into alternatives such as Instagram Reels, Snapchat, and YouTube Shorts, but many fear these platforms may not offer the same reach and functionality as TikTok.

Small businesses brace themselves for potentially disruptive TikTok ban https://t.co/AAt9glvT4y

— The Associated Press (@AP) December 31, 2024

Creators in Limbo

Content creators who have built careers and incomes around TikTok are particularly anxious about the potential ban. Many have invested significant time and effort into building their followings on the platform, and a ban could mean starting from scratch on other social media sites.

The creator economy, which TikTok has played a significant role in fostering, is projected to be worth $480 billion by 2027. A TikTok ban could severely impact this growing sector of the digital economy, affecting not just individual creators but also the businesses and brands that partner with them for marketing and promotions.

Preparing for Potential Outcomes

Influencer marketing agencies are advising creators to back up their TikTok content and continue posting until a decision is reached. Additionally, some businesses are focusing on building direct customer databases for marketing, reducing their reliance on any single platform.

If the ban proceeds, app stores and internet service providers would stop supporting TikTok, making the app eventually unusable in the United States. TikTok estimates that a one-month shutdown could result in losing a third of its daily U.S. users, causing significant harm to the platform and those who rely on it for their livelihoods.

TikTok has generated significant controversy, with the government pushing for a ban due to the company’s affiliation with China. A ban on TikTok has been floated as a possibility since the Trump administration, although more recently, President-elect Donald Trump has expressed more support for TikTok. He even recently requested the Supreme Court delay its decision so that he can look into it when he returns to office. The deadline for ByteDance to sell TikTok is currently January 19, just one day before Trump is expected to be sworn in.

As the Supreme Court deliberates, the future of TikTok in the United States hangs in the balance. The outcome of this case could have far-reaching implications for the digital economy and the way businesses and individuals engage with social media in the future.