bootstrap financing

bootstrap financing

A funding expansion from internal sources,such as reducing expenses in the budget, collecting rents or other receivables more aggressively, delaying payments to vendors, or preselling units.

References in periodicals archive ?
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.
Since 1995 thousands of companies throughout the United States have chosen to use web-based offerings and web-based capital matching services to reach potential investors in an effort to bootstrap financing for a new business or product idea.
Founded in 1996, FatWire has been profitable and self-sufficient, succeeding on its strict philosophy of bootstrap financing with a 300% annual sales growth over the last three years.