Bootstrapping refers to:

Bootstrapping refers to methods of startup capital that do not use outside funding, which is why this answer is the correct choice. In a bootstrapping scenario, entrepreneurs rely on their own resources, such as personal savings, revenue generated by the business itself, or reinvested profits, to fund their operations and growth. This approach allows business owners to maintain full control over their company and avoid debt or dilution of equity associated with bringing in outside investors.

The significance of bootstrapping lies in its emphasis on financial independence and sustainable growth. Many successful companies have started through bootstrapping, demonstrating that it is a viable path to entrepreneurship. This method can also cultivate a strong sense of discipline and focus, as entrepreneurs must be judicious with their resources.

Other funding strategies, such as bringing in outside investors or selling equity, involve different dynamics, including shared ownership or financial obligations that can influence decision-making and control within the business. Bootstrapping stands apart as a self-sufficient approach to growing a business from the ground up.