PEST Analysis

A strategic framework for evaluating the external environment affecting a business by examining Political, Economic, Social, and Technological factors.

Internal strategy only takes you so far. PEST analysis ensures founders scan the horizon for macro forces that could create tailwinds or headwinds for their business before they arrive.

A founder planning to launch a fintech product runs a PEST analysis and identifies upcoming open banking regulation as a political tailwind, rising interest rates as an economic headwind, and growing financial anxiety as a social driver increasing demand.