On March 15th, the latest report released by the economic consulting firm Oxford Economics reveals that in 2023, TikTok helped small business owners generate $14.7 billion in revenue and contributed $24.2 billion to the Gross Domestic Product (GDP) of the United States.
The report finds that in the US, TikTok created at least 224,000 job positions, with significant economic impacts observed in key regions such as California, Texas, Florida, New York, and Illinois.
To accurately assess TikTok's economic value, Oxford Economics conducted detailed surveys of over 1,000 small business owners and 7,500 TikTok users nationwide. It's worth noting that this study was completed before the launch of TikTok Shop. Since its inception in September last year, TikTok Shop has emerged as a leader in sales and marketing. However, due to the timing of the study, the economic model did not include the promotional effects of TikTok Shop on small business revenue.
The research, funded by TikTok and conducted in close collaboration with the Oxford Economics, gathered various internal operational data including employee numbers. In the US market, TikTok has garnered 7 million businesses and 170 million active users.
The report also reveals TikTok's significant impact across multiple economic sectors. Particularly in the food and beverage industry, it contributes up to $6.4 billion annually to the US GDP and has created 73,000 job opportunities by 2023. The health and wellness sector, as well as the business services sector, have also benefited with $3.9 billion and $3.6 billion respectively from TikTok.
It highlights that small businesses, utilizing TikTok as an advertising platform, contributed $5.3 billion in taxes to the US government last year. Among surveyed small business owners, 39% consider TikTok crucial to their business, with 69% stating the app significantly boosted their sales over the past year.
Moreover, even non-users of TikTok contribute significantly to the US economy. Last year, TikTok's US operations contributed $8.5 billion to the GDP, brought in $2 billion in taxes for the government, and created over 59,000 jobs nationwide.
The report further notes that minority groups are more active on the TikTok platform, leveraging it to promote their businesses. Over 80% of Black, Hispanic, and Asian small business owners reported significant sales growth after using TikTok for promotion.
Additionally, about half of the respondents believe TikTok is crucial in establishing brand partnerships and developing new revenue streams. They unanimously agree that without TikTok, they would face greater challenges in seeking partners and expanding revenue channels.
