What is "bootstrapping" in the context of starting a business?

Bootstrapping refers to the practice of using one’s own resources, such as personal savings or revenue generated from the business itself, to fund the startup costs and operational expenses of a new business. This approach emphasizes self-sufficiency and control, allowing the entrepreneur to maintain ownership and avoid giving away equity or accruing debt.

By relying on personal finances, entrepreneurs can make decisions more freely without external pressures from investors or lenders. Additionally, this model can foster discipline in spending, as entrepreneurs must carefully manage their resources, often leading to more sustainable business practices in the long run.

The other options involve external funding sources, which contrast with the concept of bootstrapping. Seeking venture capital, forming partnerships, or applying for small business loans all entail either sharing the ownership of the business or acquiring outside financial obligations, whereas bootstrapping keeps the funding internal and within the entrepreneur's control.