CHATTANOOGA, Tenn. – As the popular social media app TikTok faces a potential ban in the United States, businesses in Tennessee, especially in Chattanooga, are weighing their options and preparing for significant changes in their marketing strategies. The ban, set to take effect this weekend unless TikTok’s parent company, ByteDance, sells to an American entity, has caused concern among businesses that rely on the app for promotion and sales.
For many entrepreneurs and small business owners, TikTok has been a game-changer, offering an efficient and engaging way to reach audiences and grow their brands.
Why TikTok is at Risk of Being Banned
The U.S. government has raised concerns about national security, suspecting that TikTok’s Chinese ownership could allow the Chinese government to collect data from American users. While ByteDance has denied these allegations, the app’s fate hangs in the balance.
If the ban goes through, TikTok will no longer be available for download from U.S. app stores, leaving users and businesses scrambling for alternatives.
The Impact on Local Businesses
Many Chattanooga-based businesses have thrived thanks to TikTok’s unique algorithm, which prioritizes content over audience size. This content-driven approach allows users to go viral and reach millions, regardless of their follower count.
Ella Livingston, founder of local chocolate business Cocoa Asante, is one of the entrepreneurs whose business has flourished because of TikTok.
“In 2023, we had a viral review by Keith Lee, and it completely catapulted our business,” Livingston shared. The video’s success enabled her to leave her teaching job and focus on her passion full-time.
However, the potential loss of TikTok is a significant blow. “Based on our growth plans, I’m calculating a loss of up to $60,000 per month,” Livingston said.
The Unique Power of TikTok
Unlike other platforms like Instagram or Facebook, TikTok’s algorithm allows users to gain visibility quickly without needing a massive follower base.
Ryan Russell, a marketing professor at the University of Tennessee at Chattanooga, explained, “TikTok changed the game by focusing on content rather than audience size. That’s why it’s been so effective for small businesses.”
Chelsya Ashley, who runs a marketing agency in Chattanooga, echoed this sentiment. “TikTok has helped grow brands and accounts much faster and better than other platforms,” she said.
Content Creators Feel the Heat
The potential ban also threatens the livelihood of content creators like JonJon Wesolowski, a Chattanooga resident who has built a career as a full-time TikTok creator.
“You don’t need experience or a lot of time to succeed on TikTok,” Wesolowski said. “One viral video can help you build an audience and sustain yourself financially.”
While he admits the ban will make his job harder, he remains optimistic. “I’m confident another platform will come along with an even better algorithm or opportunities for creators like me.”
Businesses and Creators Seek Alternatives
With TikTok’s future uncertain, some businesses and creators are exploring alternative platforms. One such platform is RedNote, another China-owned app that has gained attention. However, finding a platform with TikTok’s reach and algorithm remains a challenge.
Livingston and other business owners are hopeful but anxious. “TikTok does a phenomenal job of working with small businesses. I hope a miracle happens in the next few days,” she said.
The Bigger Picture
While the potential ban poses immediate challenges for businesses and creators, it also highlights the broader debate over data security and the role of foreign-owned tech companies in the U.S.
Despite the uncertainty, Chattanooga’s entrepreneurs remain resilient. Many are ready to adapt and explore new ways to connect with their audiences.
What’s Next?
If TikTok’s parent company fails to secure a deal by Sunday, the ban will take effect, leaving users without access to the app in U.S. app stores. Until then, businesses, creators, and marketers are bracing for change and hoping for clarity.
As Livingston put it, “There’s a lot of unknowns right now, but we’ll find a way to move forward.”
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