April 5, 2024
Oxford Economic Report Reveal Black SMBs Added To TikTok’s $24B Economic Impact
Keep TikTok alive!
Black business owners took full advantage of TikTok in 2023, causing their small and medium businesses (SMBs) to reach new heights.
According to a report from Oxford Economics, more than 7 million businesses assisted in supporting more than $24 billion in gross domestic product (GDP) and over 224,000 American jobs. In fall 2023, research found that paid advertising and marketing from business owners on TikTok was the driving factor for nearly $15 billion in U.S. revenue. Some SMBs also grew the value of the free services provided by TikTok, helping them grow organically.
Business owners like Felicia Jackson, owner of CPR Wrap, say TikTok is the reason their situation changed for the better. “I could not have done this without the help of TikTok, and I say that, and I mean that, and I tell people that all the time,” Jackson said. “It’s amazing. And best yet, two lives have been saved using our product because they saw it and bought it off TikTok.”
The patented and disposable CPR template allows anyone, trained or untrained, to perform CPR to the best of their capabilities. With 120,000-plus followers on the app, Jackson reported she made “over $300,000 in just two days.” “I was able to pay myself, pay my employee, and hire another person,” she said proudly. “TikTok literally saved my company.”
The study covered all industries that contributed to the GDP from SMB use of the platform. Support from the health and wellness space was $3.9 billion, while the business services sector contribution was $3.6 billion. The food and beverage industry was the highest, supporting $6.4 billion and 73,000 jobs in 2023.
Reco Taylor, owner of TaylorMade BBQ in Shreveport, Louisiana, started selling barbeque plates out of necessity during the COVID-19 pandemic. After after his daughter convinced him to post his on TikTok, his mouth-watering food soon attracted customers from around the world.
In just four years, the former barber has gained over 63,000 supporters, with his most popular video securing more than 5 million views. Thanks to TikTok, Taylor said, he’s ready to expand his small business with a brick-and-mortar location.
As United States legislators are threatening to ban TikTok if its China-based owner refuses to sell its stake, app leaders are excited about how the platform is helping the growth of businesses. “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,” said Blake Chandlee, TikTok’s president of global business solutions.
“This study demonstrates what we at TikTok already knew: it’s a game changer for small businesses and has a significant impact on the U.S. economy.”
In the age of influence, the app has also added Black influencers to prominent lists, such as Forbes‘ 30 Under 30 honoree Olamide Olowe.
With over 126,000 followers, her skincare and beauty brand, Topicals, is now found in Sephora stores nationwide.