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Definition: Bootstrapping

Christina Hernandez Sherwood, eMed Editor, MedCity News

Definition: Bootstrapping

Bootstrapping refers to sustaining a business through personal investment and without external help. Entrepreneurs need to have "skin in the game," or personal, financial investment that demonstrates faith in the business and shows future investors the belief an entrepreneur has in the business. Bootstrapping is typically the initial funding source for entrepreneurs.

Personal investment can come in at least two forms: up-front cash invested into a business by an entrepreneur and deferring a salary or going without pay for a fixed period of time.

Photo by Tax Credits

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