What does the term "bootstrapping" refer to?

Bootstrapping refers specifically to the process of starting a business with minimal external funding, relying instead on personal savings, initial revenues, or internal resources. This approach allows entrepreneurs to maintain full control over their business and decisions without the influence or pressure from outside investors. The practice emphasizes resourcefulness and efficiency, often leading the entrepreneur to find creative solutions to challenges.

In startups and small business contexts, bootstrapping can foster a strong sense of ownership and resilience as business owners learn to operate on a limited budget. This method can also encourage innovation as entrepreneurs seek to maximize their resources effectively.

The other options describe different business practices. Acquiring venture capital involves seeking external funding to support a business's growth, hiring new employees pertains to human resource practices, while merging with another company refers to a strategic business move aimed at combining resources or market presence. These actions involve outside parties or different strategic focuses rather than the direct, resource-conscious approach embodied by bootstrapping.