Influence of Fintech Innovation and Digital Literacy on Entrepreneurial Profitability

The intensive adoption of financial technologies (FinTech) and the evolving demand in digital competence have altered the work of all entrepreneurs in the world, but many in the emerging economies do not know how to use them to achieve profit. This theoretical article explores how the entrepreneurship profitability is affected by the power of FinTech innovation and digital literacy, and why the deficit in digital capacity and insufficient usage of financial technologies affect development and competitiveness. The general aim of the study is to theorize the relationships between FinTech innovation, digital literacy, and profitability using a unified theoretical framework. Based on secondary data only, namely scholarly journals, books, policy documents, and reports and past empirical research, this paper summarizes the findings of various sources. The analysis demonstrates that the use of FinTech improves the efficiency of operations, cost-saving, and market expansion, whereas digital literacy promotes technological flexibility and financial decision-making. The paper suggests reinforcing digital learning initiatives, promoting relationships between FinTech and entrepreneurs, and developing supportive policies to be able to increase profitability and sustainability. The conclusion of the paper is that the digitization economy requires the integration of technological innovation and literacy-focused capacity building to ensure the success of the entrepreneurial activity.