Finance Dictionary : Bootstrapping

Glossary: Bootstrapping


Achieve financial autonomy in business — bootstrapping fosters growth through personal funds and internal revenue, ensuring ownership control and sustainability.



Bootstrapping refers to the entrepreneurial practice wherein a business sustains and fuels its growth exclusively through internal resources, relying on personal finances and revenue generated by the business itself.


This self-sufficient approach to funding eliminates external investors or loans, allowing the business to maintain full ownership and control. Entrepreneurs employing bootstrapping often leverage personal savings, profits generated from early sales, and organic business growth to finance operations, product development, and expansion.


While this method demands financial discipline and may limit the speed of growth compared to externally funded counterparts, it provides autonomy and minimizes debt. Bootstrapping is a strategic choice embraced by startups and small businesses seeking financial independence and long-term sustainability.


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