Amid dire concerns that TikTok threatens U.S. national security, bans against the app have spread like wildfire. Beyond just government devices, some universities initiated bans, with the latest policy talks going as far as to include personal devices as well. Though it’s unlikely that the platform will be completely banned (there are other proposed solutions, like selling the app or amending its data policies) due to free speech, the possibility of a ban raises another concern: the livelihood of small businesses.
TikTok is a central avenue for small businesses to promote their products and services, with special thanks to its algorithm, says Johannes Larsson, Founder and CEO at Financer.com.
“The platform's unique algorithm, which prioritizes content discovery and virality, has enabled many small businesses to reach and connect with potential customers in a way that wasn't possible through traditional social media platforms,” says Larsson. “Since its growth has been exponential throughout the years as a key marketing channel, the ban triggered the markets for sure.”
TikTok also masters the art of connection. Your For You Page knows exactly what you like to see. This gives small businesses the ability to get closer to their audience and reach more success that way, says saysLynzee Krohne, Founder of branding agency LEO + LAINE.
"On TikTok, brands have the freedom and space to be more casual and less branded," Krohne said. "Because of the nature of TikTok, it allows brands to let their guard down a bit and create content that may be a little more rough around the edges—which helps them appear to be much more authentic to their audience."
Jessica Tran, founder of @jtmobiledetailing, says 60% of customers choose her car detailing shop because they saw it on TikTok. Jaz and Sam Sears, owners and operators of@aztaco.king, grew their business from a food cart in a parking lot to two restaurants in less than 6 months, due to their success on the app. Megan Gersch, a web designer and brand identity creator, says around half of her client base comes from TikTok, which often turn into 4 to 5-figure contracts.
This positive growth for small biz is commonly attributed to the app’s distinctive features that connect creators with consumers, such as live video streaming, a virality-driven algorithm, and the ability for users to personalize their daily feeds.
“TikTok has been a great tool for allowing me to connect with my audience on a deeper level,” says Gersch. “There's a special magic that happens with video marketing that you can't achieve with a text or static image post. Your audience gets to know your quirks, your mannerisms, and they start to feel like they
know you, even though you've never met. Every time you see a new video from one of your favorite creators, it's like a FaceTime call from a trusted friend.”
In its absence, small business TikTokers would have no choice but to adapt and pivot their marketing strategies, which is not always easy when they’re doing it DIY-style, says Larsson.
“While small businesses may be able to find success on other social media channels, the competition for visibility and engagement is often more intense [than on TikTok], making it harder for them to stand out. The time and effort required to establish a new presence and create content tailored to the specific characteristics of other platforms could be a significant burden on small business owners.”
Small businesses pivoting to other platforms might face different struggles for exposure, due to consumers being very platform-specific, according to Krohne.
"If [TikTok] brands begin to focus their content efforts on Instagram, they’re up against multiple types of content, and competing in a more content-saturated world," Krohne told us. "TikTok mostly has one content offering, and that’s why it’s insanely popular. There’s a difference between platforms. Brands must diversify their content and show up in other places to keep a steady stream of touchpoints to remain top of mind and memorable."
Though Gersch is no stranger to restrategizing, a potential TikTok ban would still impact her business as a web designer and brand creator.
“I've been a marketer for 16+ years, and one thing that I have learned along the way is that you need to constantly test, look at your analytics, and create where the attention is,” says Gersch. “If TikTok goes away, there will be a huge gap in the market that will need to be filled.”
TikTok recognizes the work that small business owners take on in order to find success, which is why the platform has committed $1 million each to the Hispanic Heritage Foundation to elevate entrepreneurship in the Latin community, and Black Girl Ventures to support Black and Brown women entrepreneurs.
“Five million US businesses turn to TikTok to take us inside their world in a fun, authentic way, and as a result, they are reaching new customers, hiring more employees and growing their business,” says Becca Sawyer, Global Head of SMB for TikTok. “By partnering with HHF and BGV and launching virtual workshops, we're strengthening our commitment to build an inclusive and supportive platform where small business owners and entrepreneurs can share their story, find their audience and drive real business results."
We can’t make a solid prediction for the destiny of the beloved app for now, but we do know that it’ll be dearly missed by small businesses and consumers alike if bans (at any capacity) go through.
“I don't want Tiktok to be banned - not only is it an integral part of my business, but I have also been able to connect with so many incredible people that I wouldn't have met otherwise,” says Gersch. “It's my go-to source for inspiration, learning, and even a good laugh.”
Sign up for our newsletter for more takes on current events. Follow us on TikTok to catch exclusive content!
Illustration by Claire Shadomy
