E119: Free Trade, AI Integration, and Shopify Q4 Results w/ Shopify President Harley Finkelstein

Feb 20, 2025

Harley Finkelstein, President of Shopify, shares insights on e-commerce trends and the impact of tariffs on small businesses. He highlights the evolving landscape for entrepreneurs, emphasizing how starting a business is easier today than ever before. Finkelstein discusses alternative funding sources and the importance of mentorship in entrepreneurship. He also touches on Shopify's impressive growth while navigating data privacy challenges, and explores the interplay between entrepreneurship and politics, advocating for a more supportive environment.

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ADVICE

Streamlining Startup Processes

Streamline business startup processes, making them as simple as possible.
Simplify incorporation, banking, and legal aspects for entrepreneurs.

INSIGHT

Funding Landscape for Businesses

Not every business requires venture capital funding; bootstrapping and organic growth are viable options.
Some businesses benefit from funding at a certain scale, where capital can accelerate growth.

ANECDOTE

Big Shot Podcast and Spousal Influence

Harley Finkelstein's podcast, "Big Shot," interviews successful Jewish entrepreneurs.
A key takeaway is the significant influence of spouses on entrepreneurial success.

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Erik Torenberg interviews Harley Finkelstein, president of Shopify, discussing tariffs, political shifts, Shopify's earnings, and the evolution of entrepreneurship.

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RECOMMENDED PODCASTS:

🎙️Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. This season's guests include: Delian Asparouhov & Nadia Asparouhova, Kristen Berman & Phil Levin, Rob Henderson, and Liv Boeree & Igor Kurganov.

Apple: https://podcasts.apple.com/us/podcast/id1786227593

Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg

YouTube: https://www.youtube.com/@ModernRelationshipsPod

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LINKS:

Shopify: https://www.shopify.com/

Firebelly Tea: https://www.firebellytea.com/

Big Shot Podcast: https://www.bigshot.show/

Shopify president on e-commerce trends, impact of tariffs and state of the consumer: https://www.youtube.com/watch?v=si_j0P0DPM4

World's First Podcast: https://linktr.ee/worldsfirstpodcast

Nobody Wants This (Netflix): https://www.netflix.com/title/81591296

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X / TWITTER:

@harleyf

@Shopify

@eriktorenberg

@turpentinemedia

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HIGHLIGHTS FROM THE EPISODE:

Harley views tariffs as adding unnecessary complexity to entrepreneurship.
Shopify advocates for streamlining business creation processes.
Not every business needs external funding to succeed.
Shopify Capital helps merchants who can't access traditional funding.
Harley's Big Shot podcast archives stories of successful Jewish entrepreneurs.
A common theme across entrepreneur interviews is crediting spouses for success.
October 7th strengthened Harley's connection to his Jewish identity.
Harley employs different mentors for different aspects of life.
Montreal's culture celebrates entrepreneurs as cultural heroes.
Commonwealth countries suffer from "tall poppy syndrome" that discourages standing out.
2024 was Shopify's strongest year with nearly $300 billion in GMV.
International merchants now represent 50% of Shopify's user base.
Post-omnichannel commerce focuses on selling in places most relevant to specific customers.
Content, entertainment, and commerce are increasingly blending for successful brands.
Shopify takes a practical approach to AI implementation across its platform.
AI features include generated replies, media editing, and business coaching.
Shopify created dual career tracks: management and "crafters" (individual contributors).
The "Mastery" program enables promotions while staying focused on craft expertise.
Shopify operates "digital by design" - primarily remote with intentional gatherings.
Leadership team members are distributed across multiple geographic locations.
The company uses "tours of duty" - three-year commitments with deliberate check-ins.
Employees must grow at a rate equal to or greater than the company's growth.