Streaming Success: Small Businesses in the Age of Digital Influence

Committee on Small Business

2025-09-17

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Source: Congress.gov

Summary

The Committee on Small Business convened a hearing to examine the burgeoning content creation sector, recognizing creators as a new generation of entrepreneurs [ 00:25:50 ] . This industry significantly contributes to the American economy by creating jobs and driving innovation, transforming digital influence into sustainable careers across various fields [ 00:27:59 ] . Despite its rapid growth and positive impact, content creators face unique challenges that require thoughtful consideration and potential governmental support [ 00:29:20 ] .

Themes

The Creator Economy as a Vital Small Business Sector Content creators are recognized as entrepreneurs, job creators, and small business owners, operating businesses that range from product lines to educational platforms [ 00:27:59 ] . This sector contributes billions to the U.S. economy, supporting an entire ecosystem of related businesses like editors, designers, and marketing agencies [ 00:28:31 ] . The industry is projected to reach half a trillion dollars by 2027, highlighting its rapid growth and economic significance [ 00:28:45 ] . Traditional small businesses also leverage social media for advertising and expanding their reach to new audiences [ 00:32:23 ]

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Challenges and Barriers for Content Creators Creators encounter various hurdles, including unique tax situations, the unpredictability of revenue streams, and costly intellectual property protections [ 00:29:22 ] . Regulatory complexities, such as inconsistent state laws concerning the right of publicity and a lack of national oversight for child creators, further complicate their operations . Financial instability is exacerbated by delayed payment terms (net 60 or 90 days) from marketing agencies, and many new entrepreneurs lack the necessary education to navigate complex contracts and business deals . Additionally, the concentration of power among large marketing agencies often leads to imbalanced bargaining power and unfavorable contract terms . Creators also face challenges in accessing capital due to misconceptions about their business models [ 01:07:05 ]

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Impact and Concerns Regarding Artificial Intelligence (AI) While AI offers potential benefits for efficiency and accessibility in content creation, it also presents significant challenges [ 01:40:25 ]

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. Concerns include the proliferation of deep fakes, content theft, and bot influencers, which can damage credibility and lead to dangerous consequences like the misrepresentation of products [ 00:48:27 ]

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. The rise of AI-generated content can also crowd out human creators, making it harder for original content to gain visibility [ 00:33:10 ]

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. There is a clear need for education on the responsible use of AI tools and for clear disclosures regarding AI-generated content .

The Role of Government and Proposed Solutions Witnesses called for governmental action to reduce "red tape" and extend support from entities like the Small Business Administration to the creator economy [ 00:29:34 ] . Suggested solutions include federal guidance or licensing for creator economy lawyers to standardize legal protections and address inconsistent state laws . Regulation of payment terms for creators and policies to rein in harmful online content, including content theft and algorithmic manipulation, were also emphasized [ 00:33:08 ]

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. The committee was urged to protect small businesses from the negative impacts of tariffs, which have caused significant financial losses and uncertainty, and to provide stability regarding platform-specific issues like the potential TikTok ban [ 00:32:50 ]

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. Furthermore, the federalization of "Coogan laws" was proposed to protect the earnings of child creators .

Tone of the Meeting

The overall tone of the meeting was optimistic and appreciative of the entrepreneurial spirit demonstrated by content creators [ 00:29:40 ] . Speakers expressed serious concerns about the challenges faced by this rapidly evolving industry and highlighted the urgent need for thoughtful policy solutions [ 00:29:20 ] . The general sentiment was one of collaboration, with a clear call for the government to support and protect creators to ensure the continued growth and success of the digital economy [ 00:29:51 ] .

Participants

Transcript

Good afternoon, everyone.
I now call the committee on small business to order, and without objection, the chair is authorized to declare a recess of the committee at any time.  I now recognize myself for my opening statement.  Welcome to today's hearing titled Streaming Success, Small Business in the Age of Digital Influence.
Today we will examine one of the fastest-growing sectors of our economy, content creation.   While some may think of content creators only as online personalities, they really are a new generation of entrepreneurs taking risks and navigating the rapidly growing industry.  Content creators are more than just entertainers.  They are small business owners, entrepreneurs, and job creators.   They have transformed digital influence into sustainable careers by launching product lines, providing education, and creating loyal communities around everything from sports to law.  In fact, more than 1.5 million Americans now earn a full-time living as creators.  Americans are building small businesses through platforms like YouTube.  YouTube itself contributes $55 billion and a half a million jobs to the American economy.  Globally, this sector is already valued at over $250 billion.   and is projected to drive $2 trillion in social commerce by 2026.  The impact of this economy goes far beyond the creators themselves.  A single successful creator fuels jobs for editors, designers, video producers, product manufacturers, and countless other small businesses.  This spiderweb effect shows what content creators aren't just building brands, but powering an entire ecosystem of small business growth.   But as with any small business, they face real challenges.  Unique tax situations, unpredictable revenue streams, and costly intellectual property protections create barriers for those, these small business owners.  Like this committee has seen too often, red tape makes it difficult for these entrepreneurs.  So the creator economy is a prime example of the American entrepreneurial spirit.  Creators are innovative, they're fiercely competitive, and contribute greatly to America's economy.   By reducing barriers and ensuring the government does not stand in the way, we can ensure that these small businesses have the freedom to thrive and grow in a digital economy.  So I look forward to today's discussion.  I now recognize my distinguished ranking member and my friend for her opening remarks, Ms.
Velasquez from New York.
Thank you, Mr. Chairman, and good afternoon, everyone, for calling this important hearing.  Like with any emerging technology, nobody could fully foresee the economic and social implications of social media as it has been.  Since then, the landscape of social media has evolved.  America is now home to a novel content creation   industry worth billions of dollars.  Content creators come from assorted backgrounds and their paths to content creation are just as diverse.  Many are owners of traditional small businesses looking to advertise their goods and services to new audiences.   Other posts about topics that they are passionate in go viral and connect with the devout following and a golden opportunity for ad revenue almost overnight.  With the law to non-existent capital requirements and costs of starting and operating a social media page coupled with the prospect of instant fame, it is no wonder so many American youths   today dream of becoming content creators.  America's content creators often encounter longstanding issues that this committee has addressed time and time again.  As the world becomes more interconnected,   Especially in the online sphere, tariffs are an outside barrier to content creators looking to grow their small businesses through product and merchandise sales.  This spring, I led 67 colleagues in sending a letter to the Trump administration's U.S.  Trade Representative   Treasury Department, Commerce Department and SBA calling on them to consider and address the needs of small businesses in their tariff decisions.   I still have not received a response from the Trade Representative or Commerce Secretary.
Mr. Chairman, I seek unanimous consent to enter the letter into the record.  And with the new technologies and new industry come new challenges.  The rise of social media has also seen the rise of online hate and harassment, the side effects of algorithmic   content curation, the proliferation of content harmful to children, and the drowning of our discourse with AI sloth.  I will also be remiss if I did not address the elephant in the room, the ban on one of America's most important social media platforms, TikTok.   TikTok has given small businesses a lifeline in a sea of inflation, labor shortages, and ever-changing consumer preferences.  With this tool in their toolboxes, small business owners can expand their reach and sales far beyond their hometowns, making them profitable and sustainable.

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