As TikTok becomes increasingly popular, there's a strong chance the app might get banned in the US. The ban on TikTok could have a massive impact on small business owners. The US House of Representatives has already passed the bill and it's headed to the Senate before it reaches President Joe's desk. 

President Biden has previously stated that he'll pass the legislation if it reaches his desk. In this situation, small business owners in the US face a tremendous threat. TikTok is responsible for more than 90% of the income for small businesses. 

TikTok ban's negative effects will also span other industries. Since social media plays a pivotal part in search engine optimization, we can expect a downfall in blog traffic. Agencies that sell SEO services are also at a disadvantage if this ban is effective. 

With that said, let's understand what will happen if TikTok gets banned in the US.

Why Does the US Want To Ban TikTok? 

Politicians from both major US parties introduced the TikTok ban bill. The primary reason behind this bill was in fear of Chinese company ByteDance, using 170 million US citizen data. Other reasons disclosed were security threats. 

The US government demands, ByteDance to hand over TikTok's data or sell TikTok to a non-Chinese company. ByteDance and TikTok have assured several times that they won't share public data with any foreign party. However, the US refuses to believe so. 

Effect of TikTok Ban on Small Business Owners and Digital Agencies

TikTok ban will have an overall effect on the US economy. Besides small businesses, influencers and digital marketing agencies will also have to face losses. Here's what will happen if TikTok gets banned in the US. 

1. Loss of Marketing Channel

TikTok has become a popular platform for businesses to promote their products and services, especially among younger demographics. A ban would mean losing access to a large and engaged audience, impacting the visibility and reach of businesses, particularly those that have built their brand presence on TikTok.

2. Impact on Brand Awareness

For small businesses, building brand awareness is crucial. TikTok provides an avenue for businesses to showcase their brand personality through creative and engaging content. Without TikTok, businesses may find it challenging to establish their brand identity and connect with potential customers, especially those in the younger demographic who are active on the platform.

3. Decrease in Sales and Revenue

Many small businesses generate sales directly through TikTok by showcasing products, running promotional campaigns, and leveraging influencers. A ban would result in a loss of sales channels, potentially leading to a decrease in revenue for these businesses.

4. Loss of Opportunity 

TikTok provides a level playing field for businesses of all sizes to reach a global audience. Small businesses, in particular, benefit from the platform's algorithm that promotes content based on engagement rather than follower count. Losing access to TikTok means missing out on the opportunity to compete and grow alongside larger competitors on this popular platform.

5. Shift in Marketing Strategies 

A TikTok ban would necessitate small businesses to reevaluate their marketing strategies and allocate resources to other platforms or channels. This transition may incur additional costs and require time to adapt, potentially disrupting existing marketing plans and delaying campaigns.

6. Influencer Marketing Disruption 

TikTok has a thriving influencer ecosystem where businesses collaborate with content creators to promote their products or services. A ban would disrupt these partnerships, forcing businesses to seek alternative platforms or strategies for influencer marketing, which may not be as effective or cost-efficient.

7. Uncertainty and Instability 

TikTok is an incredibly popular social media platform, and we've established that. Besides losing money and businesses, the TikTok ban would create market instability and uncertainty. This uncertainty would be fueled by a belief that "We don't know when another social media would go down next" 

In this scenario, it would be tough for Meta to gain consumer trust and showcase itself as a safe social media platform. In addition, small business owners would resort to other social channels for marketing, which may increase the cost of advertisements. 

How Far Has The Bill Made It? 

Bills are typically voted on and debated upon before it moves up the ladder. The initial process of passing a bill includes a discussion over the pros and cons and what effect a bill would have on the economy. Usually, there are two sides, and they have a talk. 

Talking about the TikTok ban, the bill has already passed its first voting round in the House Energy and Commerce Committee. The bill is now moving towards the Senate where it'll undergo a similar voting process. 

If the Senate approves the bill, it goes to the President for signature and approval. Recently, President Biden has been very much inclined toward passing the bill and banning TikTok. However, there are numerous speculations where people believe the President won't go through with his decision. 

What's TikTok's Response to The Bill? 

TikTok hadn't planned to sit still while the bill was making its way to the Senate. The CEO of TikTok has called out this act of ban as "disappointing" 

The app has sent pop-ups to its users in the US to contact Congress and complain. The app is using all its means to prevent the ban. And with these means, 

The narrative has been slightly shifted. What started between Washington and TikTok has now turned tides and shaped into American citizens and their freedom of speech. 

A Word for the Wise 

TikTok ban will not only affect small business owners, but also digital marketing agencies. In addition, the loss of business might affect the US economy to some extent. Finally, influencers might say goodbye to brand sponsorships if the TikTok ban comes into action. 

All of these factors combined paint a clear picture of how drastic the TikTok ban would be for small business owners and the US economy. 

Although the app is trying its best to prevent the ban, the bill hasn't shown any signs of slowing down. As time ticked, the TikTok ban made its way to President Biden's desk, where it might instantly be passed.