April 9th 2024.
Amidst the current battle to keep TikTok in American app stores due to national security concerns, minority-owned small and medium sized businesses are speaking out about the crucial role the app plays in their success in a highly competitive market. According to a study commissioned by TikTok and conducted by Oxford Economics, Black, Latinx, and Asian/Pacific-Islander-owned businesses view the app as a lifeline.
The study reveals that social media, specifically TikTok, provides these businesses with opportunities that were previously out of reach. Traditional barriers such as limited access to capital and contracts with marketing firms are no longer as critical when promoting their business on the app. In fact, the report shows that minority-owned SMBs are able to secure lucrative brand deals and sponsorships through TikTok that they otherwise would not have access to.
Brandon Hurst, CEO of Brandon the Plant Guy, understands the immense impact a ban on TikTok would have on small businesses. In an interview with Inc., he shared that the app has a unique ability to reach a diverse audience that other social media platforms cannot. He believes that simply switching to another app would not yield the same results.
This sentiment is supported by a report from Business Wire, which states that TikTok generates more engagement than Instagram. Molly Burke, a senior retail analyst at Capterra, explains that SMBs are seeing positive returns on ad spend and increased sales thanks to TikTok's strong performance. In fact, Capterra's survey predicts that SMBs will continue investing in marketing on TikTok in the coming years.
While the reports about TikTok's positive impact on small businesses are encouraging, it is uncertain if they will be enough to prevent a potential ban. As TechCrunch reports, the bill has passed through the House of Representatives, but its fate in the Senate is less certain. Senate Commerce Chair Maria Cantwell acknowledges the national security concerns, but also recognizes the potential First Amendment challenges that may arise if the bill passes.
In a statement to TechCrunch, Sen. Cantwell shares her thoughts on the matter, stating that it is important for members of both chambers to take these national security threats seriously. She is committed to working with her colleagues to find a solution that is both constitutional and protects civil liberties. Ultimately, the $24 billion in economic activity that TikTok has helped to generate cannot be ignored, making it a complex and multifaceted issue that requires careful consideration.
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