Respected analysts Oxford Economics have today released "The TikTok Effect", a new report that quantifies the economic impact small businesses using TikTok are having in Europe. The research shows:

  • An additional €4.8 billion contributed to the GDP of Germany, France, Italy, Netherlands and Belgium in 2023 by activities of small and medium sized enterprises (SMEs) on TikTok
  • More than 51,000 jobs supported across the five countries by SMEs using TikTok as a platform for growth
  • Trade worth €600 million to GDP between the five markets also supported by SMEs’ use of TikTok, supporting 7,700 jobs.
  • SME owners on TikTok are almost three times more likely to be from a diverse background, and more likely to be under 30

Small businesses on TikTok contributed an additional €4.8 billion to significant European economies in 2023, whilst supporting 51,100 jobs, according to a new report from Oxford Economics.

TikTok launched in Europe in 2018, and now with over 134 million monthly users across the EU, has emerged as a platform of real-world success for budding entrepreneurs and small businesses across varied industries - building their brands, expanding their businesses and reaching new audiences. As these small businesses take-off and grow on TikTok, this report shows they contribute to economic growth, create more jobs and support trade.

The report, commissioned by TikTok, covers Germany, France, Italy, Netherlands and Belgium, which between them account for more than 60% of GDP in the European Union.

Many entrepreneurs and businesses have found that not only are people on TikTok interested in what they do, but that it is also possible for them to make a living showcasing their craft, products or services - from e-learning platforms in the Netherlands, to a tax management app for freelancers and the self-employed in Belgium, or jewellery makers in Italy.

Rich Waterworth, General Manager, Operations, TikTok EMEA said: "This report shows the huge benefits TikTok has brought to small businesses across Europe - helping them find new customers, rapidly grow their businesses, create jobs and drive economic growth and trade.

"We are proud of the role TikTok plays in breaking down traditional barriers to business. On TikTok, we've seen passions turn into viable businesses and entrepreneurialism unleashed, simply through access to a phone and a good idea.

"As this report shows, budding entrepreneurs have used TikTok to grow their business both organically and through the tools we provide. We continue to invest in our offer for SMEs, such as our ad products, and I want to thank our small business community who have made TikTok a brilliant place to find unique products from all over Europe."

Chris Warner, a Lead Economist at Oxford Economics said: ""Our research demonstrates the benefits of TikTok’s platform to SMEs across the EU and the significant level of economic activity supported by SMEs using TikTok. In a short period of time, TikTok has developed into a platform delivering real gains for a host of small business entrepreneurs, across a wide variety of sectors, and from a range of different backgrounds."

€4.8 billion added to GDP and 51,100 jobs supported due to TikTok

According to the research, revenues driven by SME activity on TikTok supported a €4.8 billion Gross Value Added (GVA) contribution to combined GDP across the five markets, supporting 51,100 jobs. By country, this breaks down to:

  • Germany: €1.5 billion and 18,600 jobs
  • France: €1.4 billion and 12,500 jobs
  • Italy: €1 billion and 11,300 jobs
  • Netherlands: €629 million and 6000 jobs
  • Belgium: €309 million and 2,700 jobs

TikTok helped SMEs boost their sales by €3.5 billion across the five countries in 2023. The report shows €2.1 billion in contribution to GDP was supported directly within SME revenues through their use of TikTok, €1.6 billion in supply chain purchases, and €1.1 billion in wider economic activity.

By sectors surveyed, contribution to GDP from SMEs on TikTok was highest in the food and drinks industry, at over €2 billion. Businesses like JoJo's Dough in France, founded by a couple who found themselves unemployed because of Covid-19, have flourished through TikTok, going from running the business in their apartment to now opening seven stores.

The other consumer goods sector contributed over €1.1 billion, while fashion & music and arts & culture contributed over €1.3 billion combined.

"TikTok changed my life," says Max Maiorino, shoemaker and founder of Calzolaio. Going from his family work shop to opening his own business in Saronno, Italy, the Covid-19 pandemic left his business in crisis. Max decided to join TikTok and share videos of his work. He quickly built a supportive community and his business has now been valued at over 1 million euros.

The research also shows that TikTok helps stimulate trade within the European Union. As SMEs use TikTok to grow, their supply chain imports from other member countries also grow. The report estimates that trade supported by SMEs use of TikTok sustained 7,700 jobs across the five markets, and supported a €0.6 billion contribution to GDP.

TikTok helps to unleash entrepreneurs from all backgrounds

According to the research, owners of SMEs on TikTok are almost three times more likely to come from a diverse background*. The report found 14% of owners of SMEs on TikTok come from a diverse background, compared to 5% of SME owners not on TikTok.

Moreover, owners of SMEs on TikTok are also more likely to be under 30 than owners of SMEs not on TikTok, as TikTok helps break down traditional barriers to entry to starting a business.

Timpers, a shoe-brand from Spain, is representative of this diversity of SMEs active on TikTok. Founded by three young entrepreneurs, Timpers' employees all have disabilities. Having connected over their passion for sustainable shoemaking, their team use TikTok to showcase their products as well as send a message to society that their capabilities matter more than their disabilities.

*Oxford Economics has used the European Commission's definition of someone of migrant origin

SMEs say success on TikTok translates to business growth

Most SMEs feel strongly that TikTok is giving them a powerful ability to reach customers and market their products and services.

73% of SMEs said that TikTok has had a positive impact on their ability to interact with customers and receive direct feedback. 72% said TikTok has had a positive impact on their ability to market new products and services, with 70% reporting positive results with growing brand loyalty. 45% said TikTok had a positive effect on their ability to reach new audiences internationally.

For Germany's Autohaus Sperber, TikTok is a platform where direct audience-contact is possible, meaning new customers as well as new potential talent. Thanks to their activity on the platform, they have noted an increase in their vocational apprenticeships.

Even those SMEs that are not using TikTok are benefiting from it. 17% of SMEs not on TikTok said they had benefitted indirectly from exposure on TikTok in the past year. In France, it was as high as 27% of SMEs not on TikTok still benefitting.

To download the Oxford Economics report, visit https://www.oxfordeconomics.com/resource/the-tiktok-effect-eu/