An impending TikTok ban that could take effect on January 19 could impact millions of small businesses that use the short-video social media app to help them grow.
On Friday, the Supreme Court will hear arguments about the constitutionality of a federal law that could ban TikTok in the United States if its China-based parent company, ByteDance, does not sell it. The popular platform has more than 170 million users in the United States
Last year, the Justice Department ordered ByteDance to sell TikTok, citing security concerns. President-elect Donald Trump, who takes office on January 20, asked the Supreme Court for a delay.
Many small business owners are concerned about the impact of the ban. TikTok was “pivotal to running our business early on,” said Shane Kelly, owner of vintage clothing stores Heyday in Evanston and Prison City Vintage in Joliet.
When Kelly opened Prison City Vintage in 2021, the store saw only five to 10 customers a week. But she started posting on TikTok, and a video went viral in November 2021.
“We had about 100 customers the first day after we posted our big video. Traffic increased daily at that point,” Kelly said.
TikTok has also boosted its Illinois Vintage Fest market during the pandemic.
“Every video of our event went viral and built our fan base instantly,” Kelly said. And TikTok connected them with out-of-state customers.
It also drove customers to Evanston-based barbecue restaurant Soul & Smoke, which is located in Avondale and the West Loop, both through posts from the restaurant and influencers.
“When we first opened our West Loop outpost, some of the videos we posted went viral, and we saw a significant uptick in customers,” said Heather Bublik, the company's CEO.
Chef D'Andre Carter of Soul & Smoke smokes ribs in the smoker.
Anthony Vasquez/Sun-Times file
NASCAR then featured the company on TikTok. These posts “gave us amazing visibility and introduced our brand to a whole new audience,” she said.
TikTok has been around since 2016, and small business owners use the platform in a variety of ways, from growing a customer base to advertising and marketing, as well as selling merchandise directly from the site.
According to TikTok estimates, small businesses on the app will lose more than $1 billion in revenue in one month if the ban goes into effect.
In Illinois, 280,000 businesses are actively using TikTok, according to the company. It is estimated that 8,700 jobs in the state were supported by small and medium-sized businesses using TikTok for advertising and marketing. Among Illinois small and medium-sized businesses, TikTok activity has generated more than $220 million in federal, state and local tax revenue.
If the ban occurs, small businesses will have to move to other platforms such as Instagram, Snapchat and YouTube.
Soul & Smoke will rely more on Instagram if TikTok shuts down, Bublick said.
“Losing any platform you've invested in is tough for small businesses. That's one of the reasons we're not putting more time into building TikTok — we're just waiting to see how it goes,” she said.
Soul & Smoke co-founder and chef D'Andre Carter holds up a BBQ Cajun sandwich (left) and smoked rib tips with original barbecue sauce.
Anthony Vasquez/Sun-Times file
Local businesses and content creators must constantly diversify their online presence, Bublik said. But for some of them, losing TikTok will be “devastating, especially for creators with millions of followers.” They could lose everything they built. “It is a difficult reality to face.”
Kelly began using TikTok less when news of its potential ban emerged last year. He's actually turned to posting more on Instagram and using word of mouth.
Although the ban will not significantly impact his company, Kelly said: “I'm concerned about my fellow business owners who use it every day to drive sales. It's a shame that the government as a country has put it on the gallows. Too many people have made their careers out of Application.
TikTok is fundamentally different from other apps, Bublick said.
“The user base, the algorithm, and the way it displays content sets it apart from others. It's the platform where your posts are most likely to reach people who don't already follow you. This level of organic reach is unparalleled, and is a huge advantage for businesses trying to reach new audiences.”
The platform was more engaging because “the algorithm was designed to show you things you might be interested in. And it was very easy to target people very locally with hashtags and locations,” Kelly said.
Publick said she supports national security, but banning TikTok “seems like a stretch.”
“I'm sure there are other ways to address concerns without resorting to such extreme measures,” she said.
Contributing: AP
