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Most of us have experienced it at some point: you go to your favorite local hair salon, restaurant or bar, where you can usually easily get an appointment or seat, especially on a random weekday. But suddenly, it’s packed with dozens of people you’ve never seen before—people who don’t even look like they live in your neighborhood.
This “TikTok effect” has put some of our favorite spots on blast, thanks to the algorithm’s ability to reach millions at lightning speed. But even if their viral success was inconvenient for us, it provided a lifeline for thousands of small business owners. In fact, a recent study by TikTok found that it boosted New York State's economy by upwards of $1.8 billion in 2023.
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According to the social media platform, 438,000 businesses in New York State use TikTok, and 91% of them reported an increase in sales from the app. Businesses that directly benefited from posting on TikTok contributed approximately $1.8 billion to the state’s GDP. Additionally, 63% of businesses on the platform said they attracted a new investor or secured new funding through TikTok, 61% said it expanded their reach to new customers and 67% hired an employee through an interaction that started or was facilitated on the app.
Moreover, 94% of small businesses reported that TikTok helped them scale—whether by expanding, increasing sales or hiring more employees.
“Almost every day, people come into the shop or stop me on the street because they saw us on TikTok,” said Amaurys Grullon, who runs the clothing store Bronx Native, in an interview with Time Out New York. “TikTok has the unique ability to reach both target and new audiences. We’ve been able to amplify our events and get more people engaged through our TikTok.”
Even less obvious businesses have found success by creating TikTok content that resonates with Gen Z.
“Our videos reach over 15 million people each month, connecting us with potential patients across the U.S. who might never have discovered us otherwise,” said Dr. Justin Lewis, who runs Get Adjusted Chiropractic P.C. “Through TikTok, potential patients can see exactly what we offer before ever stepping foot in our office. Our content not only educates but also builds trust, introducing people to unique treatment modalities they may never have heard of—treatments that could truly change their lives.”
Love it or hate it, there’s no denying that TikTok has become an economic force, helping some of our favorite spots keep the lights on—especially in this economy. Whether it will stick around remains to be seen but, for the sake of our mom-and-pop shops, we sure hope it does.