Illinois small businesses brace for potential TikTok ban

A looming TikTok ban that might go into effect on Jan. 19 could affect the millions of small businesses that use the short-video social media app to help them grow.

On Friday, the Supreme Court will hear arguments over the constitutionality of the federal law that could ban TikTok in the U.S. if its China-based parent ByteDance doesn’t sell it. The popular platform has more than 170 million users in the U.S.

The Justice Department last year ordered ByteDance to sell TikTok, citing security concerns. President-elect Donald Trump, who takes office Jan. 20, has asked the Supreme Court for a delay.

Many small-business owners are concerned about the impact of a ban. TikTok was “pivotal to operating our businesses early on,” said Shayne Kelly, owner of vintage clothing stores Heyday in Evanston and Prison City Vintage in Joliet.

When Kelly opened Prison City Vintage in 2021, the store only had five to 10 customers per week. But it started posting on TikTok, and a video went viral in November 2021.

“We had almost 100 customers the first day after we posted our big video. Traffic increased daily at that point,” said Kelly.

TikTok also boosted his Illinois Vintage Fest market during the pandemic.

“Every single video went viral for our event and built our fan base immediately,” said Kelly. And TikTok connected them to customers outside the state.

It has also driven customers to Evanston-based barbecue restaurant Soul & Smoke, with a location in Avondale and the West Loop, whether through posts from the restaurant or influencers.

CEO Heather Bublick said, “When we first opened our West Loop outpost, some rib tip videos we posted went viral, and we saw a noticeable uptick in customers.”

Then NASCAR featured the company on TikTok. Those posts “gave us incredible visibility and introduced our brand to a whole new audience,” she said.

TikTok has been around since 2016, and small-business owners use the platform in a variety of ways, from growing a customer base to advertising and marketing, as well as selling goods directly from the site.

According to TikTok’s estimates, small businesses on the app would lose more than $1 billion in revenue in a month if the ban goes into effect.

In Illinois, 280,000 businesses actively use TikTok, according to the company. It estimates that 8,700 jobs in the state were supported by small- and medium-sized businesses using TikTok for advertisement and marketing. Among small- and medium-sized businesses in Illinois, TikTok activity generated more than $220 million in federal, state and local tax revenue.

If a ban occurs, small businesses will have to migrate to other platforms like Instagram, Snapchat and YouTube.

Bublick said Soul & Smoke will rely more on Instagram if TikTok shuts down.

“Losing any platform you’ve invested in is tough for small businesses. It’s one of the reasons we haven’t devoted more time to building TikTok — we’re waiting to see how things play out,” she said.

Local businesses and content creators must constantly diversify their online presence, Bublick said. But for some of them, losing TikTok would be "devastating, especially for creators with millions of followers. They could lose everything they’ve built. It’s a tough reality to face.”

Kelly started using TikTok less when news of its potential ban came up last year. He has already shifted to posting more on Instagram and using word of mouth.

Although a ban wouldn’t dramatically affect his company, Kelly said, “I'm worried about my fellow business owners who use it daily to drive sales. It's such a shame that as a country the government is putting it to the ‘gallows.’ A lot of people made their careers off of the app.”

Bublick said TikTok is fundamentally different from other apps.

“Its user base, algorithm and the way it surfaces content set it apart. It’s the platform where your posts are most likely to reach people who don’t already follow you. That level of organic reach is unmatched, and it’s a huge advantage for businesses trying to get in front of new audiences.”

Kelly said the platform is more personable because “the algorithm was built to show you things you may be interested in. It was super easy to target people hyperlocally by using hashtags and locations.”

Bublick said she supports national security, but a TikTok ban “feels like a stretch. I’m sure there are other ways to address the concerns without resorting to such extreme measures.”

Contributing: AP