Arizona businesses brace for impact as TikTok ban discussions escalate

As discussions surrounding a potential national ban of TikTok intensify, Arizona’s small businesses are bracing for major upheavals. The popular social media platform, which has rapidly evolved into a crucial marketing asset for many enterprises, particularly small firms, allows owners to engage directly with prospective customers through innovative short videos and trending content.

Recent statistics indicate that approximately 120,000 businesses across Arizona utilise TikTok to promote their offerings. Among these is Kimberly Burke, a content creator who shares her insights and collaborations under the moniker “With Love from Kimberly.” Her reliance on TikTok underscores the ramifications such a ban could have on business owners who depend on the app for their livelihood.

Speaking to the news outlet, Jay Sampson, a senior lecturer at the University of Arizona, elucidated the context behind the proposed ban, explaining, “The ban was initiated based on concerns around national security, really emanating from the fact that TikTok, its parent company, is based in China.” He noted that apprehensions persist regarding the potential for the Chinese government to leverage the app as a tool for manipulating U.S. users via its algorithm.

Furthermore, Sampson highlighted the significance of TikTok to small businesses, specifying, “Eighty percent of small-to-medium-sized businesses that use TikTok to promote their products and services say they regularly sell out of products when they promote on TikTok.” This statistic accentuates the platform’s vital role in driving sales for many local entrepreneurs.

The potential impact on creators like Burke, who has been actively posting content since 2020 and has amassed around 150,000 followers, could be significant. “I support my family with my business, and so it will take away a huge portion of my income and my reach to my audience,” Burke remarked, revealing the anxiety shared by many creators who rely on the platform.

Burke curates content focused on fashion, home décor, beauty, and hair, often spotlighting small businesses in the Tucson, Scottsdale, and Phoenix areas. In collaboration with local enterprises, such as Lovlee Salon in Tucson, she effectively utilises location tagging to enhance visibility, drawing clients who share similar interests. McKaela Van Der Lee, the founder of Lovlee Salon, acknowledged the importance of collaborations with creators like Burke, stating, “We have had people coming here because of her, which makes a huge impact on a small business like ours.”

While TikTok is not anticipated to vanish immediately, legal parameters dictate that it would need to cease further downloads in U.S. app stores unless ByteDance, the parent company, divests the app by January 19. Sampson clarified the implications of the proposed ban: “If the law is enacted, TikTok will not be allowed to promote further downloads through these app stores, and they will not be able to update their app through these app stores.”

In anticipation of the changes, many creators and small businesses are strategising on alternative platforms to maintain their online presence. Burke stated, “I’m going to be working more on Instagram, YouTube, and Pinterest, and building my other communities and other apps,” illustrating the adaptive measures businesses are exploring to navigate the shifting digital landscape.

Source: Noah Wire Services