A TikTok Ban Puts Small and Mid-Size Businesses at Risk

Millennials and Gen Z’ers have been delivering think pieces on TikTok possibly being shut down all over social media, especially on the potentially axed app. Many people have debated online whether or not the U.S. Senate will have the gall to prohibit millions of Americans from using the Chinese-owned platform.

The 12-page ban bill for TikTok, officially known as the Protecting Americans from Foreign Adversary Controlled Applications Act, was passed through the House of Representatives with a vote of 352-65 mid-last week.

Congress seems to be trying to avoid having to bring down the hammer on TikTok by giving ByteDance, the Chinese company that owns TikTok, the option to sell its business within six months to avoid being banned in the States. While the bill’s proposition seems like a fair one, ByteDance being able to accomplish finding a new owner for TikTok within that time frame is highly unlikely because of “practical difficulties,” according to The Washington Post. Meaning Congress’ ban might be imminent. President Joe Biden has already agreed to sign the bill if it ends up on his desk.

The U.S. Government canceling TikTok could have a major impact on its 170 million monthly U.S. users, beyond just eliminating an outlet that fosters innovative creative expression, cultural exchange, and promotes insightful dialogue surrounding issues that are of concern to younger generations, like reproductive rights, social injustice, and environmentalism.

If the TikTok ban were to be enacted, countless small and mid-size businesses would suffer, and possibly our national economy. An Oxford Economic report released in 2023 revealed that almost 40% of SMBs admitted that TikTok played a crucial role in their entrepreneurship. Seven million businesses are currently on TikTok.

Last year’s study showed that 224,000 jobs were born from SMBs using the app to expand their businesses. Additionally, TikTok’s U.S. operations alone provided 59,000 jobs to the nation’s labor market in 2023.

SMBs utilizing TikTok in 2023 to market or advertise their companies were able to accumulate nearly $15 billion in revenue, and that same year, TikTok U.S. operations generated $8.5 billion.

Combined, the respective entities contributed a total of $24.2 billion to the U.S. gross domestic product in 2023. Not to mention, SMBs yielded $5.3 billion in tax revenue for the country’s government in 2023 also. Meanwhile, TikTok’s U.S. operations brought in a solid $2 billion, amounting to a whopping $7.3 billion in taxes paid to the U.S. government between the two in 2023.

Government officials seem to understand how beneficial TikTok is for the U.S. economy; thus, Congress giving ByteDance an ultimatum—either sell in six months or be banned in America. In an effort to save TikTok from being outlawed in the U.S., former Treasury Secretary Steven Mnuchin is working to assemble a group of investors that can buy TikTok from ByteDance, CNBC recently reported.

Mnuchin isn’t the only multi-millionaire who has their eyes set on acquiring TikTok. On Monday, Shark Tank star Kevin O’ Leary, who made his fortune in the tech industry, told ABC news that he too wanted to buy TikTok.

His desire to purchase the app stems from his strong support for SMBs.

“[TikTok] is used widely by entrepreneurs in America [and I] support small businesses everywhere. That’s on a bipartisan basis,” Kevin explained.

“There’s so many examples of companies that tell their story on that platform…young entrepreneurs in their 20s, 30s, and 40s, trying to launch companies, and that’s what I’m all about. So to me, it’s a great fit,” he added.