Meta Description: Discover the connection between FinTech and entrepreneurship and learn how entrepreneurs use FinTech tools to build businesses.
Entrepreneurship is all about finding the right market, taking chances, and creating a company that delivers value. It requires imagination, ingenuity, and efficient human and financial resources. The process of starting and running a business was once accompanied by huge financial and operational hurdles. However, FinTech has changed the way business owners think. It is now easier than ever to establish and scale a business.
The Rise of FinTech
FinTech relies on technology to perform financial functions, such as saving, investment, payment, loans, etc. Although many FinTechs improve on existing banking infrastructure, many others build solutions from scratch to address gaps in various industries. An excellent example is the MetaTrader 4 (MT4) Trading platform, which grants entrepreneurs access to financial markets and the tools to manage their investments.
The global FinTech market has experienced consistent growth over the last decade thanks to widespread applications and innovative products. America’s FinTech market is a global leader, with a projected size of over $340 billion in 2025. Only China and the European markets come close with $78.97 billion and $76.5 billion, respectively, in 2024. Some of the most prominent additions in the last decade include cryptocurrencies and artificial intelligence.
FinTech and Entrepreneurship
Convenience, choice, efficiency, and accessibility are the key attractors for FinTech users. The increased demand for quick banking solutions is important for entrepreneurs in various fields. In a working paper presented to the Banque De France in December 2022, titled “Does FinTech Promote Entrepreneurship?” the authors gave evidence that the increased adoption of FinTech promotes self-employment.
It’s a similar story in the US. Between 2022 and 2024, the number of FinTech startups in the US increased by over 50% to reach 13,100. These startups drive rapid growth and opportunities in the industry. Although FinTech has been around for nearly three decades, entrepreneurs continue to explore different niches to drive growth.
Examples of FinTech Entrepreneurship
Here are four common ways they explore FinTech.
- Crowdfunding platforms: Entrepreneurs often raise funds to launch or expand their startups and businesses. Crowdfunding provides alternatives to traditional fundraising models, allowing entrepreneurs to reach many people to raise funds. This also helps them to receive feedback on products and services.
- Mobile payment solutions: Payment systems are crucial for business operations, and this is a major area in which FinTech shines. FinTech companies offer methods that facilitate fast and secure local and cross-border payments. This helps entrepreneurs explore local and foreign markets without the bottlenecks and high costs.
- Accounting software: More entrepreneurs are adopting accounting software to perform bookkeeping and tax operations. This is shown by the increase in usage; 64.4% of US SME owners used accounting software in 2024.
- Investment software: FinTech companies provide traders with investment software like the MT4 platform. This software is used to analyze historical data, predict prices, and manage investment portfolios.
How Entrepreneurs Can Use MT4 To Grow Their Business
There are two major ways entrepreneurs can use MT4 to grow their businesses: earning passive income through trading and understanding the general economy to make informed financial decisions.
Below, we’ll explore how these two approaches can benefit entrepreneurs.
Invest in Different Markets
Investing is an essential part of growing wealth and securing profits from a business. Entrepreneurs can use MT4 to invest in various markets, including forex, stocks, commodities, and indices. For instance, if an entrepreneur has surplus funds from their business, they can allocate a portion of it to trading or investing in financial markets to create a passive income stream. Using MT4, they can trade in global markets like the stock market, where they can buy shares of companies and hold them for long-term growth. Similarly, they can trade forex to profit from the fluctuations in currency values or invest in commodities like gold and oil, which are often used as hedges against inflation.
Mitigate Currency Risk and Plan Ahead
Currency fluctuations can significantly impact businesses, especially those involved in importing or exporting goods. For example, imagine an Indian exporter who ships products to the United States. If the Indian rupee (INR) weakens against the US dollar (USD), the exporter may receive more rupees for the same amount of dollars, which will benefit their business. However, if the INR strengthens, they may receive less of their local currency, resulting in losses.
On the other hand, an importer bringing products into India from the US could face higher costs if the INR weakens, as they would need to pay more rupees to purchase the same amount of dollars. These currency risks can directly impact the profitability of businesses, especially if the fluctuations are not anticipated or planned for.
MT4 can help entrepreneurs mitigate these risks by providing advanced tools for currency analysis. The platform offers real-time charts, technical indicators, and market analysis that allow users to track currency trends and forecast potential movements. When entrepreneurs know where their home currency is headed, they can make strategic decisions, such as importing goods when the currency is strong or hedging against unfavorable exchange rate movements.
Additionally, understanding the general economy through MT4 can provide insights into macroeconomic factors like interest rates, inflation, and global market trends. For example, a rise in global oil prices could signal increased costs for businesses dependent on fuel, allowing them to plan their operations or adjust prices accordingly.
The Future of FinTech and Entrepreneurship
The demand for speed, convenience, and choice will shape the direction of entrepreneurship and FinTech. As entrepreneurs create new business models and expand markets, they’ll drive changes and the development of FinTech tools to meet new demands. Entrepreneurs will promote FinTech innovation, and the focus will shift to sustainability and building strong, robust systems. This will ensure that anyone can access financial markets and services and foster a more inclusive financial ecosystem.
