Developing and Validating an Integrated Fintech Entrepreneurial Ecosystem Model in the POST-COVID-19 era for Fintech Startup Success in Pakistan

Abstract

The rapid rise of fintech, driven primarily through technological innovation, has changed finance (Financial Services) through increased efficiency, new products, and more access to finance. The success of fintech is greatly affected by the quality of their entrepreneurial ecosystem (entrepreneurial culture, access to finance, human capital, market conditions, regulations, support services). The purpose of this study is to assess the impact of these six key components on the success of fintech startups. The study takes an Ecosystem Approach to build a model that explains how these components affect fintech startup success based on data collected from fintech professionals and ecosystem participants via surveys and interviews. The model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The analysis showed that all six components had a statistically significant and positive effect on the success of fintech startups. The regulatory component, followed by access to finance, showed the greatest positive effect on success. This study builds on prior literature and adds to the growing body of research within the fintech ecosystems by presenting new empirical evidence from an emerging economy, as well as having practical policy implications for developing more successful fintech ecosystems. The findings offer valuable recommendations for policymakers, investors, and entrepreneurs pursuing to promote sustainable fintech development and startup success.