Nearly 60% of Black small- and mid-sized business (SMB) owners on TikTok say that the app is critical to their business’ existence, a new Oxford Economics report has found.
TikTok’s Value For Small businesses
Oxford Economics, in collaboration with TikTok, sought to understand the app’s economic value for local communities across the US. It surveyed 1,050 SMBs and 7,500 users in 2023 to gauge interactions and benefits derived from the app.
Small and medium businesses generated $14.7 billion in revenues and supported 224,000 jobs on TikTok supported 224,000 jobs, the study found.
Nearly half of the surveyed SMBs credit a significant portion of their growth to their presence on TikTok.
Moreover, 49% of SMBs have benefited indirectly from their exposure on TikTok, noting enhanced audience engagement and visibility.
Read: Potential U.S. TikTok Ban Leaves Black Creators In Limbo
POC-owned businesses on TikTok
The platform’s global reach has been particularly advantageous for SMBs owned by people of color who have historically faced challenges such as limited access to capital and marketing resources.
TikTok has leveled the playing field, allowing these businesses to showcase their offerings to a broader, more diverse audience.
In the survey, 83% of Black-owned, 86% of Latin- or Hispanic-owned, and 87% of Asian-American- and Pacific Islander-owned SMBs reported seeing their sales increase after promoting their product or service on TikTok.
Moreover, over half (57%) of Black SMB owners say that TikTok is critical to their business’ existence – more than any other group.
By comparison, only 36% of white SMB owners said TikTok was critical to their businesses.
