NEW REPORT: The TikTok Boost to Small Business

By SBE Council at 27 November, 2025, 8:56 am

Entrepreneurs Find their Tribe and Financial Success

on TikTok

November 2025

Small Business & Entrepreneurship Council

Introduction

Small business owners are increasingly leveraging their social media savvy. The expansion of innovative platforms and digital tools are being fully embraced by entrepreneurs, as “easy-to-find” customers show appreciation for the value of unique products and goods offered by small businesses and the purpose behind these innovative businesses. Social media has allowed small businesses to more efficiently identify and engage customers, boost sales, and build durable customer communities for expansion and growth.

The wide array of social media options has served to compliment traditional sales channels. Small business owners understand that they operate in an omni-channel world and most have come to embrace online-marketing experimentation, which brought many to TikTok. More than 7 million U.S. businesses use TikTok, and a big share of these businesses are small.

According to SBE Council’s October 2025 Small Business Check Up and Technology Use Survey, 33% of small businesses currently use TikTok. The platform places among the top five digital platforms small businesses turn to for branding and income generation. This marks significant growth from September of 2023 when 17% of small business owners reported using the platform. TikTok has not only exploded in active users, but active small business users that are finding customers, community, and financial success.

Social Media Growth and Small Business

No doubt, it took time for small business owners to warm up to early social media opportunities and the potential for reaching new audiences. Once they did – or were compelled to as a result of economic realities, market conditions, or the shutdowns of the Covid-19 era – there was no turning back. In 2025, an estimated 96% of U.S. small businesses utilize social media as part of their branding and revenue generating strategies, which reflects the near-universal adoption that eMarketer first identified as the technology emerged in the late 2010s.

The growth of social media outlets and digital tools has been an extraordinary development for small businesses. Current adoption rates mark a noteworthy shift from 2015, when fewer than half of small businesses were experimenting with social media and one in four said they were unlikely to use it in the future.

The COVID-19 pandemic accelerated digital migration. In-person operations were restricted, and more small businesses turned to social media, technology platforms, and digital tools to maintain customer relationships and pivot to online sales. During this period, social media evolved from being a marketing tool that many small businesses were testing to a critical channel for business continuity.

It was also during this period that TikTok experienced a turning point in use and business adoption. Small business owners began recognizing TikTok’s unique algorithm and organic amplification of content regardless of follower count. It’s short-form video format proved particularly effective for showcasing products, behind-the-scenes content, and building authentic brand connections. The platform crossed the one billion global user milestone in September 2021, and today TikTok has 170 million active U.S. users.

The average American currently spends two hours and sixteen minutes per day on social media. Small business owners are shadowing this digital migration. Entrepreneurs are now integrating social media with complementary technologies such as e-commerce platforms and AI-based marketing tools, allowing them to reach customers and measure outcomes with unprecedented efficiency. The introduction of integrated features such as customer reviews, direct messaging, embedded shopping links such as TikTok Shop, and other tools has turned social platforms into de facto marketplaces, attracting customers to discover, purchase, and evaluate products and services.

The Value and Growth of Social Media

Small businesses have not only embraced digital platforms but deepened their reliance on them as primary drivers of growth, competitiveness, and resilience. Findings from SBE Council’s March 2025 Small Business Technology Use Survey reveal that digital tools have become essential infrastructure for today’s small-sized enterprise. More than half of U.S. small businesses attribute a significant share of their sales to social and e-commerce platforms, according to this survey, with a median of over 23% of total revenue generated through these channels.

Similarly, SBE Council’s October 2025 Small Business Check-Up and Technology Use Survey found that 54% of respondents said social media directly supported revenue generation, and nearly one-third added at least one new online channel in the past year.

Social media marketing now ranks as the most effective advertising investment for small firms, according to SBE Council’s March 2025 Small Business Technology Use Survey. Thirty percent of business owners identified it as their highest return-on-investment strategy, followed by word-of-mouth and email marketing.

Indeed, social media and digital tools have become equalizers, providing access to national and global audiences – harder to reach and diverse audiences – for entrepreneurs who lack big advertising budgets. SBE Council’s October 2025 Small Business Check Up and Tech Use Survey found that businesses leveraging multiple digital channels report both higher economic confidence and stronger financial performance, crediting their success to social and multi-channel strategies that “meet customers where they are.” TikTok has become a big part of its users’ business success and their positive economic outlook.

TikTok’s Rapid Adoption

Among the digital tools adopted by small businesses, TikTok has emerged as one of the most effective and transformative. What began as a Gen Z–oriented video app has evolved into a powerful engine for small business branding, sales growth, and customer engagement. From local bakeries and boutiques to home-based artisans, health and wellness providers, personal services and more, millions of entrepreneurs and small businesses have turned to TikTok to reach new customers, drive sales, and build loyal followings.

According to Ramon Ray, publisher of ZoneofGenius.com and author of “The Celebrity CEO – How Entrepreneurs Can Thrive by Building Community and a Strong Personal Brand,” small brands need diverse options to build awareness and make sales, and TikTok’s engaging format and audience stimulates connections.

“TikTok makes it easy to build connections, spread a positive message and serve customers. Even for non-profits or other non-business individuals, TikTok is an effective platform to build connections,” said Ray.

According to SBE Council’s October 2025 Small Business Check Up and Technology Use Survey, 33% of small businesses currently use TikTok. It is among the top five digital platforms small businesses turn to for branding and income generation. This marks significant growth from September of 2023 when 17% of small business owners reported using the platform.

TikTok’s appeal stems from its ability to deliver measurable results through creative, authentic, and low-cost marketing. TikTok’s organic reach, low production barriers, easy testing of ads, and commerce integrations have found favor with small business owners because they are easy to use and produce results.

A 2024 Oxford Economics report found that 88% of small businesses report increased sales following TikTok activity, and 74% said they sold out of a product tied to a TikTok promotion. Moreover, smaller accounts on TikTok often experience faster follower growth and engagement than they do on more established networks. Understandably, this has made the platform an appealing and popular one for small businesses. As noted by two small business owners who responded to SBE Council’s March 2025 Small Business Technology Use Survey:

● “TikTok has become our main place for advertising because we have seen a huge increase in orders since we began using it.”

● “We began using TikTok about seven months ago, and it has provided the best return on [our marketing] investment.”

TikTok has also become an important player in the broader omni-channel environment that is fueling successful small business growth. While 91% of small firms in total report that they use multiple sales channels, 98% of TikTok users report using multiple channels, according to SBE Council’s October 2025 Small Business Check Up and Tech Use Survey.

The survey also revealed that small business TikTok users are more robust users of other social media channels. They exhibit added savvy in their use of instant messaging, mobile apps, leveraging their own business websites, and tapping into platforms like Amazon. Similar to other small businesses, many TikTok users also sell through storefronts, in-person events such as farmer’s markets, and work with retail or wholesale partners. In general, the survey revealed that small business TikTok users are more vigorous sellers across channels and work to optimally integrate their in-person and online sales marketing strategies.

Not surprisingly, 43% of small business TikTok users report that they have added a new sales channel (or channels) in the past year. That compares to 23% of non-TikTok users. Perhaps that is why TikTok users report stronger financial performance in their businesses and greater optimism about economic conditions. According to the October 2025 Small Business Check Up Survey and Tech Use Survey, 75% currently rate economic conditions as good or excellent compared to 52% of non-TikTok users. Moreover, 90% are confident that 2025 will be a positive year for their business in terms of financial performance compared to 81% of non-TikTok users.

For many small businesses, TikTok has become a critical component of a sales-engine machine that also drives innovation, competitiveness and a range of other positive outcomes for their business.

TikTok’s Diversity and Depth

A unique attribute of TikTok is the diversity of small businesses thriving on the platform, which spans nearly every industry sector, region, and ownership background. The range of small business activity and who benefits accentuates TikTok’s unique place in the digital ecosystem that supports America’s small businesses.

TikTok hosts more than 7 million U.S. businesses on its platform, covering virtually every corner of the economy. According to SBE Council’s October 2025 Small Business Check Up and Tech Use Survey, there is strong representation of small business TikTok users in key industry sectors where competition fuels dynamism, innovation, and positive outcomes for consumers.

For example, TikTok users in the latest survey are nearly four times more likely to operate in technology and software, more than twice as likely to work in health care and social assistance, and significantly more represented in finance and insurance, retail trade and restaurant/food services compared to non-users.

The strong representation suggests that small firms in both emerging technology and consumer-facing industries find outsized value in TikTok’s ability to build awareness, foster trust, and accelerate customer conversion. Again, these are industry sectors where market competition is critical, allowing entrepreneurs and new entrants the opportunity to challenge larger incumbent players and provide choices to consumers.

Geographically, TikTok’s small business community spans the entire United States, with businesses in every state, from major metropolitan areas to rural towns, using the platform to reach wider markets.

TikTok’s tools have lowered barriers to entry and into competitive markets for entrepreneurs of diverse backgrounds, and in areas of the country where populations are smaller, such as rural America. Unlike traditional business ecosystems that often rely on networks for capital or introductions to participate in certain markets, TikTok rewards creativity and authenticity, customer service and engagement, and community connection. This has enabled people of varying ages, races, genders, and places to find success on TikTok.

The local level impact of a successful small business community is powerful. Particular in small towns and rural America where economic development can be a challenge given out-migration and greater access to modern conveniences that are more prevalent in areas with higher population density. Again, TikTok’s low-cost tools provide small businesses with the opportunity to reach large and engaged audience, which has the potential to drive significant sales. TikTok levels the playing field, allowing rural businesses to compete with larger companies by creating authentic, engaging content that builds community and connects with customers across the country, the world, or locally through location tagging.

SMALL BUSINESS IMPACT STORY: For Sarah Kelsey, Owner and Founder of Rhinestone Lipgloss, LLC, reaching beyond her company’s Wapakoneta, Ohio headquarters is imperative to the company’s survival.

“Our brand and product are not sustainable locally,” notes Kelsey.

Wapakoneta is a small town. Local employees hand-set the one-of-a kind earrings with Austrian crystal in Kelsey’s business headquarters. Kelsey explains that her product is “costly, not expensive.” The price point, however, “is beyond what our surrounding demographic can consistently afford.” TikTok is necessary, said Kelsey, to reach targeted audiences and a “younger crowd” for brand awareness and to drive sales.

“We do not spend any money on advertising – all of our reach, which includes twenty-four countries worldwide, is organic. So, we rely heavily on platforms like TikTok to reach qualified clientele,” added Kelsey.

@rhinestonelipgloss Of course they do- you’re @BoujeeVaquera⚡️ wearing @kulturedrider with perfectly matched #earrings #cowgirl #bling #western #fashion ♬ Ooh I Think They Like Me – Droop Dizzle

Rieva Lesonsky, CEO of Small Business CURRENTS and trends expert, observed that Kelsey’s marketing and social media strategy speaks to TikTok’s allure and why many small business owners are turning to the platform.

“One of the keys to small business success is going where your audience is. Millennials and Gen Z are two huge generations, currently exercising their spending power. McKinsey says millennials are currently the highest-spending generation,” reports Lesonsky.

Lesonsky emphasized the current and future buying power of Gen Z: “According to Gen Z: A new economic force, a report from Bank of America’s Institute, Gen Z, already the largest generation, will be the richest by 2035. Gen Z income is expected to surge. In the next five years, Gen Z is expected to reach $36 trillion in income, soaring to $74 trillion by 2040, making them your ideal customers.”

On TikTok, Gen Z is the dominant player, added Lesonsky: “Gen Z leads the way – 71% of TikTok Gen Z’ers made a purchase that was discovered on the site, and almost 50% bought something directly from the TikTok shop.”

Currently, 44% of TikTok users are under 25, most of them Gen Z.

Diverse Users and Small Business TikTok’ers

SBE Council’s surveys reveal that TikTok is being embraced by small business owners who span demographics. For example, the October 2025 Small Business Check Up and Tech Use Survey found that 53% of female small business owners are TikTok users versus 43% of the users and non-users in the broader sample. Moreover, 36% of small business TikTok users are African American small business owners

According to an Oxford Economics report (2024), small businesses from minority groups “report seeing their sales increase after promoting their products and services on TikTok – 83% of African American have experienced this outcome at least once, while an even greater percentage of Latino or Hispanic (86%) and Asian-American and Pacific Islander (88%) business owners have seen the same boost in business. Nearly half (45%) of SMBs from minority groups say that TikTok enables them to establish lucrative brand partnerships and sponsorships that would have been more difficult to establish without the app.”

The report noted that 57% of African American owned small businesses said TikTok was “critical” to their business existence. Similarly, 47% of Asian American and Pacific Island small businesses and 44% of Hispanic/Latino-owned small businesses reported that TikTok access was essential to their business.

Again, TikTok’s diverse and younger user base allows small businesses to reach a variety of novel customers who discover a product or service through the platform. Salesforce’s 2025 Connected Shoppers Report found that 76% of Gen Z shoppers, for example, discover products on social media platforms, reinforcing why such outreach strategies have become essential for long-term growth. With TikTok’s diverse and younger audience, small business owners have access to customers who like to explore, want to support authentic brands, and have a strong desire to buy from small and local businesses.

SMALL BUSINESS IMPACT STORY: As noted by Tom Kyllo, who owns Hawk and Griffin in Vienna, Va – a new user of TikTok – the viral effect created by younger customers who visited his British-style pub has created a virtuous cycle of new fans. The experience has also opened his eyes to a demographic that he will pursue with intention.

“As a small business owner in the competitive restaurant space, we count on positive customers reviews, word-of-mouth advertising, and our own social media and email marketing to drive traffic and sales. The viral reviews about Hawk and Griffin have been terrific and opened our offerings to a demographic that is new to the British pub experience and our fare,” said Kyllo.

@_tripletzz Hawk & Griffin 10/10‍ vienna va #fyp #northernva #dmvtiktok #foodreview #fishandchips ♬ original sound – Tripletzz

The next step, according to Kyllo is to build on the momentum: “Our goal now is to find the most effective ways to use the various social media platforms to broaden our outreach in order to not just sustain, but to continue to widen the demographic reach for our business.”

Lesonsky offered some data that authenticates the power of these generational influencers on TikTok: “Influencers have a lot of power to drive purchases – 63% of TikTok users have taken advice or suggestions from influencers, and about half of purchases made on TikTok Shop were a result of influencer posts.”

More on TikTok’s Economic Importance and Value to Small Businesses

For many small businesses, TikTok is much more than a social platform. It is a lifeline for visibility, building community, customer growth, and revenue generation. Small business owners consistently describe it as a key tool that allows them to compete effectively with larger companies on creativity, authenticity, and the customer experience rather than advertising dollars. As noted by two small business respondents to SBE Council’s March 2025 Small Business Technology Use Survey:

● “TikTok is a free advertising platform for my company, and it helps increase our business income. It brings new customers all the time.”

● “It’s an essential tool… and doesn’t take much to get eyes on your product with TikTok, which would be a problem if it were to disappear.”

According to the Oxford Economic report, TikTok delivers real results for small businesses. Again, 88% of small businesses report increased sales after promoting via TikTok, and 74% say they sold out of a product tied to TikTok activity. Moreover, 65% of these businesses say their TikTok presence generated interest from investors, and 59% say they depend on TikTok to stay competitive.

The platform serves as a conduit for fueling small business innovation and new product development. It has also helped many small businesses find and hire new employees as a result of their TikTok presence and activity.

The Future of TikTok in the U.S.

Currently, TikTok is operating in the U.S. under an enforcement delay announced by President Trump on September 16. The delay extends until December 16, 2025. In late September 2025, President Trump issued an Executive Order – Saving TikTok While Protecting National Security – that announced a deal with China that will keep TikTok operating in the U.S. and under American ownership.

Given TikTok’s significant value to small businesses and the broader economy, the case for maintaining the platform’s availability in the United States is compelling. Beyond the impressive small business economic impact TikTok generates, according to Oxford Economics ($24.2 billion contributed to U.S. GDP and 224,000 jobs in 2023), TikTok’s U.S. operations contributed an additional $8.5 billion to GDP, $2.0 billion in taxes, and a total of 59,000 jobs across the U.S. economy in 2023.

Moreover, TikTok supports 4.7 million U.S. jobs, including more than 3.1 million creator or account-management roles and another 1.6 million positions in marketing, sales, and product development that benefit indirectly from the platform’s business ecosystem. The business activity fueled by TikTok generated an estimated $5.3 billion in taxes in 2023.

Beyond this striking data are countless stories of small business growth and opportunity. TikTok’s value extends far beyond the big numbers – though they matter – with millions of small purchases made by customers who value the authenticity, quality, and choices that small businesses bring to the marketplace and that they discover via TikTok.

Strong Small Business Support for Maintaining TikTok’s Presence in the U.S.

Across the country, and for the past year or more, small business owners have expressed concern about pulling TikTok offline. According to the SBE Council’s October 2025 Small Business Check Up and Tech Use Survey, 89% of small business owners who use TikTok say the platform is important to their business’s viability, and 46% describe it as critical to their survival. Additionally, 79% say that it is important to their business that a deal to keep TikTok operational in the U.S. becomes finalized.

For small business users, TikTok is not just another social app. It is an essential tool that fuels new sales, business growth, innovation, competition across industry sectors, and opportunity for entrepreneurs and the people who work with them.

There is broad momentum to preserve TikTok’s presence in the United States. Millions of small business owners have yet to experience the benefits of the platform, yet many are itching to include TikTok into their sales channel mix. The positive results and experience documented by current TikTok users bodes well for new users whose aim is to sell more, innovate more, and meaningfully engage with TikTok’s dynamic and massive user base.

Report authored by: Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council, with support from the SBE Council team.