TikTok's Ban: A Devastating Blow to Small Businesses

The impending ban of TikTok in the United States, set to take effect on January 19, 2025, threatens to decimate the businesses of countless small entrepreneurs who have built their livelihoods on the popular social media platform. The Supreme Court's decision to uphold the Protecting Americans From Foreign Adversary Controlled Applications Act (PAFACAA) has left these businesses grappling with the prospect of losing their primary source of income and customer base.



Small businesses have been particularly vulnerable to the potential fallout from the TikTok ban. Ash Johnson, senior policy manager at the Information Technology and Innovation Foundation, warns that the ban will have the largest effect on smaller businesses that have limited to no advertising budget. These businesses have used TikTok to reach new audiences and grow, and losing that reach will be detrimental to their survival (Johnson, 2025).

For instance, Jessica Simon, the founder of Mississippi Candle Company, estimates that between 90% to 98% of her candle company's sales come either directly or indirectly from TikTok. She anticipates a steep decline in sales if TikTok is banned, which could lead to job losses and economic hardship for her and her employees (Simon, 2025). Similarly, other small businesses that have invested time and resources into building a presence on TikTok will likely face similar challenges.

Moreover, the ban could have broader economic implications. TikTok has created jobs and economic opportunities in the U.S., and the ban could lead to a loss of these opportunities. According to a 2024 Later study, 80% of both macro (500k+ followers) and mid-tier (50-500k followers) influencers expect their income to drop if TikTok is banned, which could lead to a ripple effect throughout the economy (Later, 2024).

In addition, the ban could lead to a loss of innovation and competition in the social media landscape. TikTok started the wave of short-form video content, which has since been adopted by other platforms. The ban could diminish companies' options for reaching younger audiences and stifle innovation in the industry.

The looming threat of the TikTok ban has left small businesses scrambling to adapt their marketing strategies. Diversifying their social media presence and focusing on other platforms will be crucial for these businesses to survive the potential loss of TikTok's reach. By repurposing their best TikTok content for other video-based platforms like Instagram Reels, YouTube Shorts, Snapchat Spotlight, and Facebook's short-form video features, small businesses can reach audiences on multiple channels and reduce their dependence on a single platform (Makenzie Holland, 2025).

Building strong social presences across multiple channels will also be essential for small businesses to tap into different audience segments and increase their brand's visibility. For example, Mississippi Candle Company's founder, Jessica Simon, has 50,000 followers on TikTok, compared to 7,700 on Facebook and 3,100 on Instagram. By building a strong presence on these platforms, she can reach a broader audience (CBS MoneyWatch, 2025).

Focusing on owned media, such as websites and email lists, will also be crucial for small businesses to create a direct line of communication with their customers. This approach allows them to maintain control over their audience and reduce their reliance on third-party platforms. For instance, Adtaxi's manager of social operations, Natalie Andrews, mentioned that they are working on an action plan to help clients diversify their marketing strategies across different platforms (Makenzie Holland, 2025).

In conclusion, the potential long-term effects of the TikTok ban on the U.S. economy, particularly for small businesses, are significant. The ban could lead to job losses, economic opportunities, and a loss of reach and customer base for small businesses that have built their presence on the platform. Additionally, the ban could have broader economic implications and lead to a loss of innovation and competition in the social media landscape. Small businesses must adapt their marketing strategies to compensate for the loss of TikTok's reach by diversifying their social media presence and focusing on other platforms. By doing so, they can mitigate the impact of the ban and maintain their marketing effectiveness.