TikTok's Ban Could Devastate Thriving Businesses

The Supreme Court's upholding of a law banning TikTok in the U.S. has sent shockwaves through the small business community, with many entrepreneurs fearing the loss of their livelihoods. TikTok has been a game-changer for countless businesses, providing an unparalleled platform for growth and exposure. But now, that growth is under threat, and the consequences could be catastrophic.



For Jessica Simon, founder of Mississippi Candle Company, TikTok has been a lifeline. With 50,000 followers on the platform, she estimates that between 90% and 98% of her sales come either directly or indirectly from TikTok. The potential ban has left her grieving the anticipated loss of sales and the challenge of rebuilding her community on other platforms. "We'll have to completely rebuild our community somewhere else, and it will take a lot longer than it did on TikTok," she said.

Paulina Hoong, owner of Menmin Made, a small business selling Asian American and Pacific Islander-inspired prints, home goods, and apparel, has also seen significant growth thanks to TikTok. She worries that sales will drop once the platform is gone, leaving her to find alternative means of reaching her audience.



The impact of a TikTok ban extends beyond just small businesses. Content creators, many of whom have built their careers and income streams around the platform, are also at risk. Christopher Rudd, who goes by Kit Lazer, quit his day job last June after building a following of over 716,000 on TikTok. He said, "The work paid off; Rudd started collecting enough views and brand deals to quit his day job last June." If TikTok goes dark, creators like Rudd will lose this income source.

The ban has created uncertainty for content creators, with some considering quitting. Gillian Johnson, a 22-year-old filmmaker, said, "The idea of TikTok going away is 'hard to accept.' Many creators have taken to TikTok to voice their frustrations, grappling with the possibility that the platform they've invested so much in could soon disappear." This uncertainty could lead to job loss for those who have left full-time jobs to build careers and incomes around their content.

The potential revenue losses for TikTok-dependent businesses in the short and long term could be significant. According to TikTok's own estimates, small businesses on the platform would lose more than $1 billion in revenue in a single month if the ban goes into effect. In the long term, businesses like Crown's Corner Mechanic and Mommy and Me: The Listers may struggle to maintain their customer base and grow their businesses without the reach and functionality of TikTok.

The ban on TikTok will significantly impact the creator economy and the livelihoods of content creators. According to a report by Goldman Sachs, the creator economy, fueled in part by TikTok, could be worth $480 billion by 2027. A ban on TikTok would disrupt this growth and impact the overall creator economy.

In conclusion, the looming TikTok ban could have devastating consequences for small businesses and content creators who have built their livelihoods around the platform. The potential revenue losses, both in the short and long term, are significant, and the impact on the creator economy could be substantial. As the Supreme Court's decision approaches, these businesses and creators face an uncertain future, with the very real possibility of losing their hard-earned success.