US Decision Could Cause Small Business Exodus on TikTok
In the possible absence of the most popular social media platform in the US, certain content creators and small businesses worldwide say bye bye TikTok might witness a harsh decline in their earnings. A consequence of a decision endorsed by the US government.
As the TikTok ban makes its way, American entrepreneurs express concern over their income sources that is generated from the application. International businesses that are dependent on U.S. consumers for sales and content interaction, share these worries. While alternatives exist, discovering a viable replacement may prove challenging.
The TikTok Effect on US Economy
Amidst the mandate for TikTok’s sell-off in the U.S., the platform is emphasizing its economic significance to the nation. A recent study by Oxford Economics revealed that TikTok contributed $24.2 billion to the U.S. economy in 2023. This figure is hoped to sway some senators against the proposed transfer of the app to U.S. ownership, following the rapid advancement of a bill in the House.
According to a statement released by TikTok, “According to research conducted in the summer of 2023, U.S. small- and mid-sized businesses (SMBs) that marketed or advertised on TikTok generated nearly $15 billion in revenue in 2023. SMBs on TikTok also placed a significant value on the free services provided by TikTok, which help them grow organically. These two value streams together supported a $24.2 billion contribution to U.S. the gross domestic product (GDP) in 2023.”
The study also revealed that nearly 40% of SMBs do in fact consider TikTok a necessity for their survival. On another note, TikTok served as a platform for SMBs to support around 224,000 jobs and aid for business growth and expansion.
What Is the Alternative to TikTok?
The potential TikTok ban may result in doom for businesses that are associated with or rely on the application. The ban will compel users to adapt to the new situation and explore other social media platforms.
“We’re living in a digital economy … and we’re basically relying on technology for all kinds of communication and information,” says Mohammad Rahman, a professor of management at the Purdue University Daniels School of Business, US.
Finding an alternative will be extremely difficult due to TikTok’s amazing algorithm system, which no rival company has managed to replicate.
Will TikTok ever be able to find its way back to the Americans, because you know when there is a will there is a way. If not, then bye bye TikTok.
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