TikTok fuels significant economic growth for more than seven million businesses and the U.S. economy as a whole by helping to support more than $24 billion in gross domestic product (GDP), and more than 224,000 American jobs, delivering a competitive edge to small businesses across the nation. That’s the finding of a new report from Oxford Economics, “TikTok: Helping Grow Small and Midsized Businesses and Delivering Value for Consumers Across the United States”.
The report makes especially interesting reading against a backdrop of U.S. policy makers considering banning TikTok across the country, or as an alternative trying to force a sale by owner Bytedance. Looking at the numbers, there are a lot of potential votors who will lose their businesses and income were TikTok to be banned, and that’s without the countless millions who use TikTok as a source of entertainment.
According to research conducted in the fall of 2023, SMB investments in paid advertising and marketing on TikTok drove nearly $15 billion in revenue in the US 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 the US GDP in 2023.
- 224,000 jobs were supported by SMBs use of TikTok as a platform to grow and expand their business;
- SMBs use of TikTok as an advertising and marketing platform supported a total of $5.3 billion in taxes to the US government in 2023; and
- TikTok’s US operations themselves supported an additional $8.5 billion contribution to the GDP, $2 billion in taxes, and 59,000 jobs across the US economy in 2023.
Businesses across America depend on TikTok’s unique ability to help them reach otherwise unreachable customers, generate new revenue streams, and drive awareness of their brands, products, and services. This study demonstrates what we at TikTok already knew: it’s a game changer for small businesses and has a significant impact on the US Economy.
– Blake Chandlee, President of Global Business Solutions, TikTok
The study also found that nearly 40 percent of SMBs say TikTok is critical to their businesses’ existence, which is home to seven million businesses and 170 million active users in the US.
We found that the TikTok platform provides substantial benefits to SMBs and supports a significant level of economic activity in the US economy. In just a few years, TikTok has developed into an important tool for entrepreneurs across a wide range of sectors, and from diverse backgrounds, to advertise their goods and services to new customers and grow their businesses.
– Oxford Economics
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