Bootstrapping in Entrepreneurship

Play an AI-generated podcast conversation about this lesson

What is the primary characteristic of bootstrapping in entrepreneurship?

Hiring a team of experts to launch a venture

Building a business with very little funding or capital (correct)

Raising large amounts of capital from investors

Partnering with other businesses to share resources

How did Gregor Lawson and the Smeaton brothers fund their business, MorphCostumes?

By each contributing $1,500 of their personal savings (correct)

By crowdfunding on social media

By seeking investment from venture capitalists

By securing a large loan from a bank

Which of the following companies is NOT an example of a bootstrapped venture?

Google (correct)

Microsoft

Coca-Cola

Apple

What is the primary goal of entrepreneurs who use bootstrapping strategies?

To conserve cash and make progress before seeking funding Signup and view all the answers

How much money did Michael Dell need to start Dell Computers?

$1,000 Signup and view all the answers

What is the primary difference between crowdsourcing and crowdfunding?

Crowdfunding involves funding, while crowdsourcing involves free labor Signup and view all the answers

What is a key aspect of bootstrapping, according to the text?

Finding creative ways to access resources Signup and view all the answers

What is a characteristic of many successful entrepreneurial ventures, according to the text?

They all began as small, bootstrapped ventures Signup and view all the answers

Which of the following is NOT a common bootstrapping strategy used by entrepreneurs?

Maintaining high operating inventories Signup and view all the answers

What is a benefit of using bootstrapping strategies, according to the text?

It enables entrepreneurs to make progress before seeking funding Signup and view all the answers

What is the term used to describe the increase in value or ownership interest created as a result of hard work?

Sweat equity Signup and view all the answers

What has the crowdfunding movement provided, according to the text?

A democratic means of funding Signup and view all the answers

What is the primary objective of bootstrapping strategies in entrepreneurship?

To minimize costs and delay the need for external funding Signup and view all the answers

Which of the following is an example of bootstrapping, according to the text?

Developing and reaching out to contacts Signup and view all the answers

What is the most important aspect of cash management in bootstrapping?

Being mindful of cash flow: cash in, cash out, and overall cash needs Signup and view all the answers

What is the potential benefit of building a prototype of a product on your own?

It creates value while saving the cost of hiring a designer or manufacturer Signup and view all the answers

What is the primary advantage of using coworking spaces instead of renting an office?

It saves on renting an office Signup and view all the answers

What is the key to successfully bootstrapping a business?

Looking for creative ways to use whatever resources you have to save money Signup and view all the answers