What is the concept of bootstrapping in entrepreneurship?

Bootstrapping in entrepreneurship refers to the practice of starting and growing a business with minimal external funding or resources. This concept emphasizes reliance on personal savings, revenue generated from the business, and creative resourcefulness to achieve growth. Entrepreneurs who bootstrap often aim to maintain control over their businesses without incurring significant debt or diluting ownership through external investments.

This approach allows business owners to be more strategic and careful with their expenditures, as they must make the most of the resources available to them. Bootstrapping can also foster innovation and efficiency, as entrepreneurs often find unique ways to solve problems and deliver value without heavy financial backing.

While securing venture capital, obtaining bank loans, and franchising can be legitimate paths for business growth, they do not embody the bootstrapping philosophy, which specifically focuses on self-funding and minimizing reliance on external financial support.