Which statement best describes bootstrapping?

The statement that bootstrapping is a method of starting a business with minimal resources accurately captures the essence of the concept. Bootstrapping refers to the practice of building and growing a business without relying on external funding sources, such as venture capital or loans. Entrepreneurs who bootstrap typically use personal savings, reinvest profits, and operate on a tight budget. This approach emphasizes resourcefulness and efficiency, allowing them to maintain control over their business while gradually scaling up operations.

The focus of bootstrapping is on achieving sustainable growth through careful management of resources, which can lead to a solid foundation for future expansion. This strategy can foster innovation and resilience, as founders learn to operate within constraints.

In contrast, other options imply dependence on external funding or high financial risk, which are contrary to the principles of bootstrapping.