Oxford Study Reveals TikTok Benefits for Minority Businesses Under Proposed TikTok Ban –


Tik Tok ban, minority businesses, social media

The report also notes that minority-owned small and medium-sized businesses are given access to brand offerings that they otherwise would not have access to without Tik-Tok.

Although TikTok is currently fighting to stay in American app stores on national security grounds, minority-owned small and medium-sized businesses (SMBs) say the app is critical to their success in a crowded market.

As Inc. As reported, a study from Oxford Economics shows that Black, Latinx and Asian Pacific Islander-owned businesses view the app as a lifeline. TikTok commissioned the study to estimate the app's economic impact on the American business landscape.

According to the study, “social media offers these companies opportunities that may have been denied them in the past. Barriers such as access to capital, contracts with marketing firms and access to media may be far less critical in driving business opportunities on TikTok.”

The report also noted that minority-owned small and medium-sized businesses gain access to brand offerings that they otherwise would not have access to without TikTok. “Nearly half (45%) of minority SMBs say TikTok allows them to build lucrative brand partnerships and sponsorships that would have been more difficult to establish without the app.”

Small business owners like Brandon the Plant Guy CEO Brandon Hurst understand that banning TikTok would mean an incalculable loss. Hurst told Inc. that TikTok has the unique ability to offer SMEs a reach that they would not have with other apps.

“I think they (legislators) believe there are a lot of social media apps and we could just join another app and still continue to promote our business,” Hurst said. “I don’t think they realize that TikTok has a really unique ability to reach people that you wouldn’t reach with any other app.”

Hurst's claim is confirmed by a report from business wire, which claims that TikTok drives more engagement than Instagram. Molly Burke, a senior retail analyst at Capterra, told the outlet: “The performance of SMBs on TikTok is strong. Most are seeing a positive return on ad spend, increasing revenue from TikTok, and engagement far beyond what they get on any other social media app, including Instagram and Facebook.”

Capterra is also expecting a strong 2024 for TikTok, as their survey of SMBs suggests they will increase their marketing spend on the platform later in the year. While it's unclear whether reports of TikTok's support of SMEs will be successful in staving off a potential ban, the $24 billion the app injected into economic activity is hard to ignore.

As TechCrunch The prognosis for the Senate is reportedly less positive, although the bill moved quickly through the House. Senators like Senate Commerce Chairwoman Maria Cantwell (D-WA) recognize the national security concerns but also know that potential First Amendment challenges would likely arise if the bill were to pass.

Senator Cantwell emailed TechCrunch a statement: “These are national security threats and it is good that members of both chambers are taking them seriously,” Cantwell said. “After today’s vote in the House, I will speak with my colleagues in the Senate and House to find a path forward that is constitutional and protects civil liberties.”