Georgia economy may lose millions with TikTok ban. Here’s why
TikTokers got another reprieve as the White House extended its April 5 deadline for the social media app to be sold.
TikTok owner ByteDance was granted another 75 days to complete the sale of the app before it is banned in the U.S. “The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days,” posted President Donald Trump on Truth Social.
The standout contender is software conglomerate, Oracle, and NPR is reporting the Trump administration is “considering a deal to potentially resolve TikTok’s legal uncertainty that involves leasing the app’s algorithm from Beijing-based owner ByteDance.”
Oracle, which is owned by billionaire Larry Ellison and is Trump supporter, is already managing TikTok’s cloud functions and has experience with high-security data. Ellison is one of the major architects of the current leasing deal that is on the table now.
Why should Georgia residents care about TikTok?
This is not the problem of teenagers and influencers because, like it or not, TikTok plays a role in Georgia’s economy.
The video-sharing app has become a cornerstone for businesses across the United States, and Georgia is no exception. According to a TikTok impact report conducted by Oxford Economics, 300,000 businesses in the state are actively using the platform, and 210,000 jobs benefit from TikTok-related activities.
With the impending threat of a nationwide ban, many are questioning what the economic fallout might look like for the state.
The economic impact in Georgia
The platform has been particularly transformative for small businesses. Of the surveyed SMBs in Georgia, 91% reported increased sales after using TikTok, with 76% scaling their operations as a result.
In 2023, small and mid-sized businesses (SMBs) using TikTok contributed $750 million to Georgia’s GDP and generated $140 million in federal, state and local tax revenues.
Last year, when the first ban was impending, Dr. Betsy Grunch, a Gainesville neurosurgeon, told FOX5 Atlanta, “It’s helped me not only grow my practice, but I think it’s helped people to reach out to other providers about symptoms they may be having.”
Grunch currently has 2.4 million followers and is one of the many creators in Georgia who have used the platform to increase visibility, higher sales and attract new investors.
Georgia’s TikTok business, by the numbers
TikTok grants help businesses increase their reach and interact with a diverse audience that would be otherwise unreachable.
These numbers reflect the significant impact the ban would have on SMBs:
74% reported TikTok helped them scale their operations
65% gained investments through TikTok interactions
51% say their business hired an employee using the app
39% said TikTok allowed them to connect with communities they couldn’t reach through other platforms
The potential fallout of a TikTok ban in Georgia
If TikTok is banned in the U.S., the economic repercussions could be severe for Georgia:
In December, CNBC reported that businesses using TikTok could lose over $1 billion in revenue within a single month nationwide.
For Georgia-based entrepreneurs who rely heavily on the app for customer acquisition and sales, this could mean significant financial setbacks.
Job disruption: 210,000 Georgia jobs are tied to TikTok activities
Marketing challenges: Instagram or Facebook require significantly higher investments to achieve comparable results.
Community Impact: Many SMBs, particularly minority-owned businesses, will lose financial opportunities and brand deals.
Do you use TikTok for your business? Are you concerned about your livelihood? Email me at srose@ledger-enquirer.com or find me on Instagram.
