Glossary Term: Bootstrapping

What is bootstrapping in business?

Bootstrapping is a situation in which an entrepreneur starts a company with little capital. They often rely on money other than outside investments. An individual is bootstrapping when they attempt to start or build a company from personal finances. The growth of the start-up relies on the operating revenues of the new company.

Why is it called bootstrapping?

Bootstrapping comes from the phrase, “To lift himself up by his bootstraps.” This represents something that is generally impossible. It refers to the fact that you cannot lift yourself into the air by tugging at pieces of leather on your boots.