Which of the following concepts is related to starting a business without external funding?

Bootstrapping is a concept that refers to starting and growing a business using one’s own resources without relying on external funding or outside investors. This approach emphasizes self-sufficiency, where the entrepreneur utilizes personal savings, revenue generated from early sales, and careful management of resources to finance the business operations and growth.

The significance of bootstrapping lies in its potential to maintain greater control of the business and ownership since there is no need to share equity with investors or meet their expectations. Entrepreneurs who bootstrap often prioritize cash flow and efficiency, enabling them to build a sustainable business model with minimal overhead.

In contrast, the other concepts—capitalization, venture financing, and equity funding—specifically involve obtaining capital from external sources or investors to finance business activities. These methods could involve borrowing or selling ownership shares, which would not align with the idea of starting a business solely from internal resources. Thus, bootstrapping is the correct concept associated with launching a venture independent of external financial support.