Webisode 3,Season 1
Usually nascent entrepreneurs facing a lack of resources, have no choice but to resort to non-market sources, such as family and friends, to finance the acquisition of their factor inputs. Using strategies that have been referred to as bootstrapping, these entrepreneurs manage to find solutions that for all practical purposes are closed to them. The important point about the entrepreneurial use of non-market solutions is that through creativity and imagination the entrepreneur keeps the price of the important factors low enough to generate a positive outcome for the venture. By leveraging their human, social, and limited financial capital, entrepreneurs acquire resources at prices well below what they would otherwise be, in the competitive markets under conditions of high uncertainty.
In other words, bootstrapping is to start a business without external help and capital. Startups that bootstrap their business fund the development of their company through internal cash flow and are cautious with their expenses. These bootstrappers, with very low resource endowments manage to create long lasting and successful firms from scratch.
-Painting, "Boots" by Benjamin Hope-
Usually nascent entrepreneurs facing a lack of resources, have no choice but to resort to non-market sources, such as family and friends, to finance the acquisition of their factor inputs. Using strategies that have been referred to as bootstrapping, these entrepreneurs manage to find solutions that for all practical purposes are closed to them. The important point about the entrepreneurial use of non-market solutions is that through creativity and imagination the entrepreneur keeps the price of the important factors low enough to generate a positive outcome for the venture. By leveraging their human, social, and limited financial capital, entrepreneurs acquire resources at prices well below what they would otherwise be, in the competitive markets under conditions of high uncertainty.
In other words, bootstrapping is to start a business without external help and capital. Startups that bootstrap their business fund the development of their company through internal cash flow and are cautious with their expenses. These bootstrappers, with very low resource endowments manage to create long lasting and successful firms from scratch.
-Painting, "Boots" by Benjamin Hope-
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