How to multiply company value through scaling markets, managing intellectual property, bootstrap financing
, tech transfers, and entrepreneurial techniques
Few studies have examined the relationship between bootstrap financing and entrepreneurs' characteristics, such as age, education, and gender, despite recognition of the importance of these connections (Honig, 1998).
These sources of funding outside the traditional corporate financial structure have been included in bootstrap financing methods.
Bootstrap financing has been especially important for new firms, which experience high start-up costs and low revenues (Bhide, 1992; Starr and MacMillan, 1990).
Bootstrap financing has been a widespread solution (Ebben and Johnson, 2006; Winborg and Landstrom, 2001) that has allowed small firms to access a broader range of financing alternatives.
No previous studies have provided this insight despite the important role of bootstrap financing among small firms and the growing importance of both women and men as business owners.
More highly educated entrepreneurs will use bootstrap financing more than less educated entrepreneurs.
The above positioning statement is supported by the recent observations of other scholars such as Van Auken, (2005) who observed: "Although bootstrap financing commonly is used and is an important source of capital, few.
Van Auken observed a "serious gap in the literature" (in apparent concurrence with the authors of this paper) and stated that "research on the use of bootstrap financing is limited" (Van Auken, 2005, p.
The Use of Bootstrap Financing Among Small Technology-Based Firms.