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Committee Examines Opportunities and Challenges for Small Businesses in the Creator Economy

WASHINGTON – Today, the House Small Business Committee held a full committee hearing titled “Streaming Success: Small Businesses in the Age of Digital Influence” to examine how content creators are building businesses, the barriers they face, and the broader economic impact of the creator economy

 

Ranking Member Nydia M. Velázquez (D-NY) emphasized the importance of adapting federal policy to meet the needs of this rapidly growing sector.

 

“America is now home to a novel content creation industry worth billions of dollars,” said Ranking Member Velázquez. “America’s content creators deserve a federal government that is willing and able to support their endeavors. That requires responsive agencies and strong, stable public policy conducive to a prosperous business environment”

 

The hearing featured testimony from Jesse Appell, founder of Jesse’s Teahouse, who has built a business blending content creation and ecommerce. Appell began his company during the COVID-19 pandemic and has since grown it into a thriving business that combines media and ecommerce.

 

During the hearing, Appell detailed some of the serious challenges facing creator businesses including global tariffs and Trump administration trade policy.

 

“As for challenges in the free market, the recent tariffs have had a devastating impact on my business. I estimate we have lost approximately $250,000 in sales as direct result of the most recent trade war. I run a subscription tea club, where every 3 months, we send our club members great new teas,” said Appell. “But our May subscription box sat in the port during the trade war, and we had to skip it altogether. We also couldn’t get a single restock shipment between January and August. This is all in addition to increased taxes.”

 

Velázquez also addressed the uncertainty created for small businesses and content creators by efforts to ban TikTok.

 

 “TikTok has given small businesses a lifeline in a sea of inflation, labor shortages, and ever-changing consumer preferences,” Velázquez said. “With this tool in their toolboxes, small business owners can expand their reach and sales far beyond their hometowns, making them profitable and sustainable. And now we are in TikTok limbo. Such short timeframes create uncertainty for the content creators that rely on this platform, rendering them unable to plan beyond a 2-month horizon and adding immeasurable pressure to their business models”

 

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