When entrepreneurs "bootstrap" their financing, this means that they are
A) enhancing the "corporate image" of their enterprise by the way they raise capital.
B) depending on their own initiative to come up with the capital necessary to start up and grow.
C) subordinating future capital formation to short-term financial performance.
D) waiting to establish a reputation in the marketplace before raising the bulk of their capital.

Question

Quizplus · Accepted Answer

Bootstrapping refers to starting and growing a business using one's own resources and funding, rather than relying on external investors or loans. This requires a great deal of initiative and resourcefulness on the part of the entrepreneur, as they must find creative ways to finance their endeavors. Bootstrapping can help entrepreneurs maintain control over their business and avoid taking on significant debt or equity from outside investors.

When Entrepreneurs "Bootstrap" Their Financing, This Means That They Are