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TikTok Ban Could Devastate Black-Owned Businesses And Creators

The ripple effects of TikTok’s ban could reshape how small businesses reach their audiences.
TikTok Ban Could Devastate Black-Owned Businesses And Creators
Pretty african-american girl having video call on her phone at home. African woman resting on couch hold mobile phone look at device screen smiles enjoy online chat with boyfriend, e-dating active user, surfing internet weekend lazy activities modern tech usage concept
By Kimberly Wilson · Updated December 11, 2024

Have you ever bought something after seeing it on TikTok? You’re not the only one. 

The platform’s unique algorithm has been a game-changer for small businesses and creators, especially Black entrepreneurs who have leveraged it to amplify their voices and their brands. But now, with the looming threat of a U.S. ban on TikTok, many are staring down the possibility of devastating financial losses.

Experts say a TikTok ban could cost small businesses and creators a jaw-dropping $1.3 billion in just one month. For Black creators and entrepreneurs, who already face systemic barriers in traditional industries, the stakes are even higher.

TikTok’s algorithm often helps level the playing field, allowing up-and-coming creators and brands to reach millions without hefty advertising budgets. According to various reports, many small businesses rely on TikTok as a primary tool for customer engagement and sales. Unlike Instagram or YouTube, where paid ads dominate, TikTok’s organic reach has allowed small businesses to thrive with minimal investment.

Additionally, the Oxford Economics report, commissioned by ByteDance, highlights TikTok’s broader economic contributions, noting that in 2023, the platform generated $14.7 billion for small and medium-sized businesses and supported 224,000 U.S. jobs.

However, the potential ban introduces significant challenges. Businesses would be forced to compete on platforms where visibility often comes at a premium. Marketing experts point out that the cost of advertising on Instagram or Facebook is significantly higher, putting financial pressure on small businesses already operating on tight margins.

TikTok has also been a one-of-a-kind space for cultural expression and building communities. Black creators have used the platform not only to drive revenue but also to foster spaces where they feel seen and heard. The ban could disrupt these carefully cultivated communities, making it harder for creators to connect with their audiences in meaningful ways.

As lawmakers debate TikTok’s fate, Black creators and small business owners are left in limbo. While some are diversifying their presence to platforms like Instagram Reels and YouTube Shorts, these alternatives come with limitations that make them less accessible for smaller creators. The uncertainty makes it difficult for many to plan for the future, leaving them bracing for significant changes in how they operate.

This looming ban highlights why creators and businesses need to diversify their income streams and push for more equitable digital spaces. The impact of losing TikTok would reverberate beyond the app itself, threatening to undo years of progress for Black creators and entrepreneurs. It’s more than just a platform — for many, it’s been a cornerstone of opportunity in a system that hasn’t always been equitable.

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