April 5th 2024.
In 2023, TikTok became a game changer for small and medium businesses owned by Black entrepreneurs. These savvy business owners utilized the platform to its fullest potential, resulting in unprecedented success and growth for their companies. A report from Oxford Economics revealed that more than seven million businesses contributed to a staggering $24 billion in gross domestic product and created over 224,000 jobs in the United States. The fall of 2023 saw paid advertising and marketing from these business owners as the leading factor in generating almost $15 billion in US revenue. Additionally, many of these businesses were able to capitalize on the free services provided by TikTok, leading to organic growth.
One shining example of the impact of TikTok on Black-owned businesses is Felicia Jackson, the owner of CPR Wrap. She credits the platform for completely transforming her situation. Without the help of TikTok, Jackson believes she would not have been able to achieve the success she has today. In her own words, "It's amazing. And best yet, two lives have been saved using our product because they saw it and bought it off TikTok." Jackson's patented and disposable CPR template has gained over 120,000 followers on the app, and she proudly reports making over $300,000 in just two days. This success has allowed her to pay herself, her employee, and even hire another person.
The study conducted by Oxford Economics covered all industries that contributed to the GDP from the use of TikTok by SMBs. The health and wellness sector contributed $3.9 billion, while the business services sector contributed $3.6 billion. However, the food and beverage industry had the highest impact, supporting $6.4 billion in revenue and creating 73,000 jobs in 2023.
Reco Taylor, the owner of TaylorMade BBQ in Shreveport, Louisiana, also saw a significant boost in his business thanks to TikTok. Initially selling barbeque plates out of necessity during the COVID-19 pandemic, his daughter convinced him to post on the app. Soon, his mouth-watering food caught the attention of customers from around the world. In just four years, Taylor has gained over 63,000 supporters, with his most popular video receiving more than five million views. He credits TikTok for helping him expand his small business and is now planning to open a physical location.
As legislators in the United States threaten to ban TikTok, the platform's leaders are excited about its impact on the growth of businesses. Blake Chandlee, TikTok's President of Global Business Solutions, stated, "Businesses across America depend on TikTok's unique ability to help them reach otherwise unreachable customers, generate new revenue streams, and drive awareness of their brands, products, and services." He believes that the study conducted by Oxford Economics only further proves the platform's significance for small businesses and its impact on the US economy.
In addition to its impact on businesses, TikTok has also uplifted Black influencers, such as Olamide Olowe, who was named to Forbes 30 Under 30 list. Olowe, the founder of skincare and beauty brand Topicals, has over 126,000 followers on the app and her products can now be found in Sephora stores nationwide. In the age of influence, TikTok has become a powerful tool for Black entrepreneurs, opening up new opportunities and levels of success that may have been previously unattainable.
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